What form of capital can eskom obtain

Answers

Answer 1

Eskom can obtain basically two major types of capital. They include the following.

equitydebt

  These two forms of capital are very crucial in the financial sector of the company. It is important to note that both capital and debt are equally relevant to the government because the government is the  primary shareholder and Eskom depends hugely on the support it gets from the government. this support may be  in the form of loans or equity or guarantees.

What is Equity?

Equity is a financial terminology that describes the ownership of assets that may have debts or other liabilities attached to them.

To ascertain equity in accounting, you have to subtract the liabilities from the value of the assets.

Learn more about Eskom at https://brainly.com/question/28468275

#SPJ1


Related Questions

emmit is a military verterean who requires many abscences for medical reasons. his boss at betri famrns has determined that he reduce the number of ick days unless he provides his medical history. which law(s) protect him

Answers

Employee sick leave act protect him. Emmit can use this law. So the boss only check his medical record and not do anything else.

What is Illinois employee sick leave Act?

A State statute known as the Employee Sick Leave Act (Public Act 99-0841) (the "Act") requires companies to permit employees to use at least a portion of the sick leave time that is already theirs, under specific existing workplace practices, to care for specific relatives.

What are the reasons for sick leave?

The time off that an employee may take for personal or family illness is known as sick leave (as specified under law). When an employee is unable to work due to illness, they are paid throughout their sick leave.

To know more about employee sick leave Act visit:

https://brainly.com/question/28197824

#SPJ9


If you hire a tax preparer, then you don't have to supply all accurate and complete tax information.
T True
OF False

Answers

The statement, if you hire a tax preparer, then you don't have to supply all accurate and complete tax information, is true.

Just knowing that a professional tax preparer is handling your taxes reduces stress. As, making mistakes here can become very costly. In terms of missed deductions or triggering an IRS letter or an audit, a tax professional can help eliminate errors by ensuring that your returns are prepared correctly.

So anyone with a relatively complicated tax situation can thus benefit from hiring a professional. Suppose if you own a business and have lots of different expenses to deduct, it may be worth paying someone who can help you in navigating your return.

Hence, option A is correct.

To learn more about a tax preparer here:

https://brainly.com/question/26771683

#SPJ1

1.According to the "real-balances effect," if prices
A-increase, the purchasing power of assets will decrease, so spending at each income level should rise.
B-decline, the purchasing power of assets will rise, so spending at each income level should rise.
C-increase, the purchasing power of assets will rise, so spending at each income level should rise.
D-decline, the purchasing power of assets will decrease, so spending at each income level should rise.

Answers

.According to the "real-balances effect," if prices decline, the purchasing power of assets will rise, so spending at each income level should rise.

The real-balance effect is considered as one of the  three basic effects which  indicate why aggregate expenditures are inversely related to the price level.

The real-balance effect will work like this: A higher price level always decreases the purchasing power of the money which results in a decrease in consumption expenditures or investment expenditures or government purchases and net exports.

A lower price level will also have the opposite affect which will cause an increase in the purchasing power of money that results in an increase in consumption expenditures, investment expenditures, government purchases, and net exports.

To know more about real balance effects here:

https://brainly.com/question/21410685

#SPJ1

Creating and following a budget will help prevent common college financial mistakes,
such as racking up credit card debt or misusing your loan money.

True or False

Answers

Answer:

True

Explanation:

Thats true, because when you know your budget, there will be less mistakes about money, you will know your ends.

What is a reason why a business should be managed ethically?

Multiple Choice

a.It's the right thing to do.
b.It's the law in the United States.
c.Your employees demand it.
d.There are strict global regulations require it.

Answers

What is a reason why a business should be managed ethically?

Multiple Choice

a.It's the right thing to do.

b.It's the law in the United States.

c.Your employees demand it.

d.There are strict global regulations require it.

There are strict global regulations require it.

Adam's Apple Orchard Inc. (Adam's) deploys a fleet of 10 trucks to transport apples and other fruits from its growing fields to a central inspection and processing station. Adam's uses the services of Safety Inspection and Repair Company (SIRC) to maintain its fleet. Although each vehicle was typically scheduled for a maintenance check every six months, recent cost-cutting measures at Adam's resulted in a change to once-per-year inspection and maintenance. Last month, one of Adam's drivers was on his route when an intoxicated pedestrian stumbled onto the roadway. Although the driver had a clear view of the pedestrian, the brakes in the truck failed, and the pedestrian suffered injuries from the collision. The evidence revealed that the truck had been inspected on the previous day and found to need new brakes. A mechanic trainee, who was not yet certified installed the new brakes incorrectly and violated state safety inspection standards.

Answers

Based on the fact that the a mechanic trainee without certification was allowed to install the new brakes, the possible tortfeasor in this case are E. I, II and IV.

Who is the tortfeasor in this case?

The tortfeasor refers to the person who is responsible for the action that caused injury to another person in a tort case.

In this instance, there will be three tortfeasors with the first being the mechanic trainee. The trainee knew that they were not certified and still went ahead to violate state safety inspection standards so they are liable.

Safety Inspection and Repair Company (SIRC) will also take responsibility for allowing the mechanic trainee to install the breaks when they should have exercised better oversight.

Finally, Adams Apple Orchard knew the breaks were not installed correctly and still drove the truck. There were grossly negligent in this instance and so will be responsible as well.

Rest of the question and options:

Adam’s driver knew the brakes were incorrectly installed and chose to drive the truck anyway to meet delivery deadlines.

Which of the following is a possible tortfeasor in this case?

I. Adams Apple Orchard.

II. Safety Inspection Repair Company

III. The pedestrian.

IV. The mechanic trainee.

I only.IV only.III only.I, II and IV.II and III.

Find out more on tortfeasors at https://brainly.com/question/28136021

#SPJ1

Economists assume people choose something when its expected costs are less than its...
O Required Maintenance
O Anticipated benefits
O Working Life
O Chief competitors

Answers

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' behavior.

In order to build a model that they can control because economists are unable to isolate certain factors in the real world, they must make assumptions. Its main objective is to describe and examine the prices and volume transacted in a market that is competitive. Equations in the model calculate supply and demand levels in relation to price and other factors (for example, income). Which analysis of economic theory holds up the best? predicting with the help of the scientific way of thinking (developing a theory from basic principles and testing it against events in the real world.) The following is an illustration of a normative economic statement: "The government should offer universal access to basic healthcare." As you One might infer from this that it is value-based, based on one's own perspective, and meets the criteria for what "should" be.

Learn more about economic hear :

https://brainly.com/question/15210864

#SPJ9

What is an economic impact of sports and entertainment events on a community?

Answers

The economic impact of sports and entertainment events on a community is that major sporting events and entertainment have their main economic impact via the direct expenditure of tourists associated with the event.

A conducted research shows that the economic impact of sports and entertainment events on a community is major, as it leads to the creation of new jobs, increased sales in certain market segments, increased consumer spending, and increased tax revenue.

Sports are considered to be a telling reflection of a society's values, and so they are a significant contributor as well. Sports impact our culture, other sources of entertainment, and our economy via the direct expenditure of tourists associated with the event.

Hence, sports and entertainment have a great economic impact.

To learn more about expenditure here:

https://brainly.com/question/988584

#SPJ1

(30 Marks)
a)Management of GENADE Travel and Tour has identified two groups of
individuals that would be interested in the vacation package consisting of room and
board and/or entertainment. The maximum amount that group 1 is willing to pay
for room and board is GHC 2500 and for entertainment is GHC 500. For
group 2,
the maximum amount they are willing to pay for room and board is GHC 1800 and
for entertainment is GHC 750. Although GENADE Travel and Tour is not able to
identify members of either group, it does know that each group values the
components of the package differently. Assuming there are an equal number of
members in each group and that the total membership in each group is a single
individual. If the marginal cost of providing the service. (room and board and/or
entertainment) to each group is GHC 1000.

Answers

The marginal cost of providing the service, For room and board GHC = 1800 And For entertainment GHC500.

If the management is not able to identify the group of customers, it should charge the minimum price customers are willing to pay as it does not lead to losing a market share and helps to compete in the market without identifying the group of customers.  But this strategy is suitable only if the management is able to recover its marginal cost.

The maximum price for room and board = GHC 2500

The maximum price for entertainment = GHC 750

The minimum price for room and board = GHC 1800

The minimum price for entertainment = GHC500

Marginal cost = GHC1000

The minimum price customers are willing to pay = is GHC(1800 + 500).

Thus, The marginal cost of providing the service

For room and board GHC = 1800

And For entertainment GHC500

Learn more about the marginal cost here:-https://brainly.com/question/11689872

#SPJ9

Reflect: In terms of dealing with workplace harassment, how effective do you think mandatory training in a school curriculum would be? Justify your answer.​

Answers

Harassment prevention training raises awareness throughout the organization about what harassment is and the role employees can play in creating a safe and harassment-free work culture.

An effective curriculum provides teachers students school leaders and community stakeholders with measurable plans and structures for delivering quality education. The curriculum identifies the learning outcomes, standards, and core competencies that students must demonstrate before progressing to the next level.

Curriculum Evaluation Determines curriculum quality, program effectiveness, processes, and deliverables. Curriculum assessment is different from student assessment. A broader term is used to assess the value and effectiveness of a curriculum. The study room should have three areas. First, an area for loud brainstorming, an energetic area where the atmosphere is instantly electrified.

Learn more about Workplace Harassment here:-https://brainly.com/question/27888410

#SPJ9

The amount you pay each time you visit a health care provider or have a prescription filled is called a

Answers

The amount that a person pays when they visit health care providers or have their prescription filled is a Copayment.

What is a copayment?

A copayment refers to the amount that people pay to their healthcare providers out of their pocket when they go to get services such as having their prescriptions filled.

Copayments are usually fixed amounts that depend on the kind of care you receive from your healthcare provider.

In conclusion, that amount that is paid by a person when they visit a health care provider or go to fill up their prescription is a Copayment.

Find out more on copayments at https://brainly.com/question/17373826

#SPJ1

Mrs Lopez is an independent agent

Answers

The statement that best describes the responsibilities of Ms. Lopez is: Ms. Lopez is considered a marketing representative of BestCare and thus is obligated to comply with CMS marketing requirements, including using only approved call scripts.

Who is a  marketing representative?

A marketing representative can be defined as someone whose duties is to advertise product to potential customers by creating brand or product  awareness so as to attract buyers to the product.

Mrs lopez is a marketing representative of BestCare since we were told that Ms. Lopez tend to returns calls to individuals who contact MarketCo in response to its mailers promoting BestCare health plan.

Therefore the statement that best describes the responsibilities of Ms. Lopez is: Ms. Lopez is considered a marketing representative of BestCare and thus is obligated to comply with CMS marketing requirements, including using only approved call scripts.

Learn more about marketing representative here:https://brainly.com/question/28441662
#SPJ1

The complete question is:

Ms. Lopez is an independent agent under contract with MarketCo, a third-party marketing organization. MarketCo has a contract with BestCare health plan, a Medicare Advantage (MA) organization, to offer marketing services through its contracted agents and agencies. Ms. Lopez returns calls to individuals who contact MarketCo in response to its mailers promoting BestCare health plan. Which of the following best describes the responsibilities of Ms. Lopez?

Please select the word from the list that best fits the definition
actions or activities that one person performs for another

Answers

The term from the list that best describes actions or activities that one person performs for another is services.

A service business is one in which the buyer's perception of the value of the offering is mostly based on the services rendered to him rather than the products made available. All intangible services offered to the customer fall under this category. Restaurants and supermarkets are two examples of tangible services where customers receive both goods and services, and which fall under the umbrella of services marketing. The variety of services varies depending on how tangible and intangible the offerings are to the user. Some offerings are obviously services, such as watching a movie, visiting an art gallery, or attending a sporting event.

Learn more about Services here:

https://brainly.com/question/12096912

#SPJ9

Identify each characteristics according to whether it applies to private or public companies or both

Answers

A private corporation is typically owned by its founders, management, or a collection of individual investors.

A corporation that has sold all or a portion of itself to the general public through an initial public offering is referred to as a public company.

What is difference between Private and Public Corporation ?

The way the two types of businesses approach public disclosure is one of the key distinctions. It is customary for a corporation to submit quarterly earnings reports to the Securities and Exchange Commission (among other things) if it is a public U.S. company, which means it trades on a U.S. stock exchange (SEC). The general public and shareholders have access to this information. However, as they do not trade shares on a stock exchange, private businesses are not compelled to disclose their financial information to anyone.

To learn more about Private and Public Corporation  checkout the link below :

https://brainly.com/question/12055742

#SPJ9

Complete Question - Identify each characteristics according to whether it applies to private or public companies or both . If the property applies to neither structure , leave it unidentified .

The following balances are from the accounts of Santa Maria Parts:

July 1 (Beginning) September 30 (Ending)
Direct materials inventory $ 79,800 $ 97,400
Work-in-process inventory 72,600 40,200
Finished goods inventory 81,000 75,000
Direct materials purchased during the quarter amount to $510,000, and the cost of goods sold for the quarter was $1,770,000.

Required:
Prepare a cost of goods sold statement.

Answers

The Cost of Goods sold for the quarter contains $530,800 of material the complete statement is made as follows.

What is Cost of Goods sold?

Beginning Direct Material       $79,800

Beginning Work in process    $72,600

Beginning  Finished goods    $81,000

Purchases during the period  $510,000

Total balance available                                                    $743,400

Less: Total at end of the period                                       $212,600

Direct Material       $97,400

Work in process    $40,200

Finished goods     $75,000

Net Cost of Goods Sold for the period                           $530,800

Therefore the net cost of goods sold material cost is $530,800 and the difference between $530,800 and $1,770,000 is $1,239,200 includes the amount of labor, overheads and fixed costs that are directly attributable to the production of the goods and so are included as a direct cost in the cost of goods sold.

Learn more about Cost of Goods sold at https://brainly.com/question/27102421

#SPJ1

Dust Jackets is a used bookstore. For decades they have bought and sold books only through their brick and mortar shop, but declining sales and the rise of online culture have convinced the owner to create a website and begin doing business online as well. As a member of Dust Jackets’ HR team, you will be hiring new resources for a number of different positions to help the store make the transition to online business. The new e-store will need coders to create the online shop, customer service representatives to take calls, warehouse staff to handle shipping and storage, and additional professionals to evaluate and price books.


You will prepare to create your recruitment plan by reviewing these open positions, and evaluating the availability of talent to fill them.

Answers

The recruitment plan to evaluate the availability of talent to fill them.for the following open positions: coders, customer service representative, and warehouse staff are:

Past job related experienceNumber of years of experienceJob qualification

The three job characteristics the HR professional for Dust jackets need to identify about the open position in order to fill them are:

Organization skillsBook keeping and recordingPoliteness

The positions which can be filled internally is "warehouse staff to handle shipping and storage".

The position for which the HR professional might consider hiring contract workers is "customer service representatives to take calls".

The steps that should be taken to stay in compliance with equal employment opportunity commission(EEOC) when recruiting is to give equal opportunity to employees

The four areas the HR professional should make sure not to discriminate against are:

AgeGenderPhysical disabilityEthnicity

What the HR professional should be sure to make available if you hire someone with disability is "elevators and health care" to enhance their working condition.

Who is an HR professional?

An human resource professional (HR) is an individual responsible for welfare and working condition of employees in an organization which includes: hiring, firing, payment etc

Learn more on HR team:

https://brainly.com/question/4060635

#SPJ1

Answer:

Hope this helps!

HELP ME!!


Write a reflection on career and income

Answers

Career and income are subjects that are correlated, due to the fact that income is a reward acquired through the services established within a function, which, when performed effectively, has a greater possibility of career development and, consequently, income.

Is income an indicator for career choice?

Although the income associated with a particular career can be an indicator that leads professionals to seek qualification in that area, it should not be the focus of choosing a career, because each individual has a greater inclination towards a certain different professional area. , aligned to your profile, skills and desires.

Therefore, the appropriate career is one that is aligned with the individual and their inherent or acquired characteristics and skills, with income being a positive consequence of a job well done.

Find out more about career choice here:

https://brainly.com/question/1088471

#SPJ1

What is the purpose of requiring contractors to pay overtime on government contracts?A.To allow workers to spend more time with their families
B.To discourage contractors from working on government contracts
C.To increase taxes paid by contractors
D.To encourage contractors to hire more workers

Answers

The purpose of requiring contractors to pay overtime on government contracts is D.To encourage contractors to hire more workers.

What is an overtime payment?

Overtime payment is compensation compulsorily required by law, which employers must pay their workers for working beyond normal working hours.

As a compensation package, overtime payments encourage the workers to work more hours, ensuring that employers do not over-labor their employees without adequate compensation.

Paying overtime is not a requirement to discourage contractors, increase their taxes, or allow workers to spend more time with their families.

Thus, government contracts require contractors to pay overtime to encourage them to hire more workers instead of using overtime, which attracts a higher rate.

Learn more about overtime payments at https://brainly.com/question/901346

#SPJ1

Describe the economic impact of inflation on both businesses due to raising or lowering the price of their products.

Answers

Demand-pull inflation takes place when an increase in the supply of cash and credit stimulates the overall demand for goods and services to increase extra rapidly than the economy's manufacturing potential. This increases call for and leads to rate rises.

Inflation is a trendy boom in the prices of products and offerings in an economy. When the general charge degree rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a discount inside the shopping strength of money.

Inflation is the price of increase in costs over a given period of time. Inflation is usually a large degree, along with the overall increase in fees or the increase within the price of living in a country.

Learn more about inflation here:https://brainly.com/question/8149429
#SPJ9

Which of the following is an example of a "hidden task"


A. A graphic designer is trained to use a new type of design software.

B. The office manager maintains an inventory of office supplies because he knows employees need them.

C. The office manager proofread marketing material because she has excellent editing skills

D. The human resource manager stays up to date on laws regarding workplace safety.

Answers

An example of a "hidden task" is C. The office manager proofread marketing material because she has excellent editing skills.

What is a hidden task?

A hidden task does not appear on the officeholder's task schedule.

A hidden task is done without a clear assignment.  A hidden task forms part of a contingency management plan.

Training a graphic designer to use new design software is not a "hidden task." Maintaining an inventory of office supplies and being up-to-date on laws are not "hidden tasks."

By offering to proofread the marketing material based on her excellent editing skills, the manager shows flexibility with her schedule, notwithstanding that it was not an assigned task.

Thus, proofreading is an example of a hidden task that should be factored into a contingency management plan.

Learn more about managing hidden tasks at https://brainly.com/question/24662469

#SPJ1

why is it so important that the mouth and stomach are near the start of the digestive system

Answers

The process is important to finish the digestion and absorption once the foodstuff has been swallowed.  

What is the digestive system?

The organs aid in the body's foodstuff digestion and absorption helps compensate the digestive tracts. It is a lengthy, twisted tube with a mouth beginning and the withdrawal is with the help of the anus.

Saliva production happens inside the mouth. This salivary amylase molecule, which is found in charge of breaking down carbohydrates, is present in saliva. This is done with the help of the digestion the absorption of the various materials.

Learn more about digestive system, here:

https://brainly.com/question/10457697

#SPJ1

According to the World View, what percent of the total population is serving in the military in

Answers

Currently, less than 0.5% of the population of the United States—or 1.3 million people—are on active duty.

A population is the entire set of people in a group, regardless of whether they are part of a nation or a collection of people who share a certain trait. The group of people from which a statistical sample is taken for a research is referred to as a population in statistics. As a result, a population can be defined as any collection of people who have something in common. Instead of the complete population, a sample may instead refer to a statistically significant fraction of the population. Because of this, a statistical analysis of a sample must provide an estimate of the standard deviation, often known as the standard error, of its findings from the full population. Only a population-wide analysis would be devoid of standard error.

Learn more about population here

https://brainly.com/question/27991860

#SPJ9

HOW TO START PROJECT

Answers

Answer:

eat tae tae tae tae tae tae tae tae tae taetaetae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae tae

Explanation:

taetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetaetae

Planning,Execution,closure

14. Why is it important to prioritize steps to solve a problem?
O It will ensure that you reach the best solution.
O It will keep people from complaining about the solution.
O It will help you decide which steps are most important.
O It will make the communication less confrontational.

Answers

It will help you reach a solution that will be as fair and reasonable as possible. :)

what is bureaucracy from management point of view

Answers

Bureaucracy from management can be defined as the way in which the organization describes the way the task and the order are being maintained.

What is management?

Management can be defined as the process in which the managers manage various departments and take the action that is necessary for the running of the company.

Bureaucracy is a particular type of company that is characterized by structure, clear permanency, quality competence, administrative coordination and control, and legal power.

The power is regarded as the highest power and the decision will be made according to that only.

Learn more about management, here:

https://brainly.com/question/11599959

#SPJ1

Week 2 Forum
Week 2 topic - Debits vs. Credits and what happens to an account when entries are changed.
Hide Full Description
This is the discussion forum topic for Week 2:
Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh
Stallings, the CEO, who was something of a celebrity in the community. The CEO stood to earn a
substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh's elite social
circle; he boasted to Hugh that he knew some accounting tricks that could increase company income by
simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy
changed the debits from "rent expense" to "prepaid rent" on several entries. Later, Hugh got his bonus,
and the deviations were never discovered.
Requirements
How did the change in the journal entries affect the net income of the company at year-end?
Who gained and who lost as a result of these actions?

Answers

You could struggle as a business owner to know when to use a debit and when to utilize a debits and credits in accounting. Even so, you could be unsure of their relevance.

You can check that you're following the accounting equation by using debits and credits. The accounting equation is:

Assets = Liabilities + Equity

Any transaction that is recorded includes at least two accounts in double-entry accounting, with one account being debits and credits and the other being credited. To keep your accounts in balance, your debits and credits must always equal one another. Debits are always entered on the left side of the entry, while credits are always entered on the right.

Debits and credits are the foundation of precise accounting for a business, whether you're operating a sole proprietorship or a publicly traded enterprise. In contrast to credits, debits result in a gain in asset or expense accounts and a drop in liability accounts. Recording these transactions can get more difficult as your business expands, but it's important to get it right to keep your books balanced and monitor your organization's progress.

The double-entry accounting method is utilized by the majority of organizations, including small firms and sole proprietorships. This is because tracking debits and credits every business transaction in at least two accounts enables a more dynamic financial picture.

Learn more about debits and credits here

https://brainly.com/question/14747768

#SPJ9

Good note-taking requires that you write down every word spoken by the instructor_
True or False

Answers

Answer:

False.

Explanation:

I think it depends on the instructor. Some can't explain very well and tend to talk relatively fast to get everything done on time. Some people can't write as fast and for good note-taking I suggest write down the things you know you will probably have trouble with overtime and should word things the way you can understand it. It's good if the instructor tends to make sense in your brain, but it's just not relatively possible unless they repeat it or go slower countless times.

Answer:   FALSE

Explanation:

YUP THATS RIGHT

Is technology by itself enough to ensure high quality customer service

Answers

Yes, technology without anyone else's say enough to guarantee top-notch customer service since Customer service is the arrangement of service to customers previously, during, and after a buy. Customer service is a progression of exercises intended to improve customer fulfillment.

Technology also can be defined as the department of information that caters to the creation and use of technical means and their courting with society and the surroundings, using engineering, implementation, and natural science. There are 3 kinds of technological innovations which includes the Semi- Radical, Incremental, and Disruptive. This kind of technology normally relies on current expertise about technology.

Data technology is important in our lives because it enables us to cope with regular dynamic things. technology offers diverse tools to reinforce development and exchange records. each of these items is the goal of IT to make duties less difficult and to resolve many issues.

Learn more about technology here: https://brainly.com/question/25110079

#SPJ9

Which model of communication best best accounts for the process and give reasons

Answers

The best-acknowledged communication models are the transmitter-receiver model according to Shannon & Weaver, the four-ear version in line with Schulz von Thun, and the iceberg version consistent with Watzlawick.

The interactive communication models are the handiest manner to provide an explanation for impersonal -way communication procedures.

The target audience appreciates it as each event is worried. This model is effective as it gives more whole expertise of a context related to relational, social, or cultural identities. It's far favored as it gives a threat to both events.

Learn more about communication models here: https://brainly.com/question/24414910

#SPJ9

A bondholder purchased an 8 percent coupon, $1,000 par three-year bond at a 7 percent yield. Interest rates then immediately fell to 6 percent and his bond was called at a price of $1,040. Did the call help or hurt the bondholder?

Answers

The bondholders will help in the calling as it will give them a benefit of  0.40%.

Who is a bondholder?

A bondholder can be defined as a person who invests the in some sir kind of security, which is typically issued by some kind of organization or by a government.

The formula for the Future Price will be:

Future Price = Price Value x ( 1 + Rate ) No. of years

= 1040 x ( 1 + 6% )³

= 1040 x 1.191016

= 1238.67

The Price of the bond after three years is $1,274.04

Future Price = Price Value x ( 1 + Rate ) No. of years

1238.67 = 1000 x ( 1 + r )³

1238.67/1000 = ( 1 + r ) ³

0.123867= ( 1 + r ) ³

r = 0.074 or 7.40%

The rate of return is 7.40%

=  7.40% - 7 %

= 0.40%

Therefore, he was helped from the call as he earned 0.40% more than the rate of return.

Learn more about bondholder , here:

https://brainly.com/question/14452603?referrer=searchResults

#SPJ1

Other Questions
A constant force applied to object A causes it to accelerate at 5 m/s. The same force applied to object B causes an accelera-tion of 3 m/s. Applied to object C, it causes an acceleration of8 m/s.a. Which object has the largest mass?b. Which object has the smallest mass?c. What is the ratio of mass A to mass B (mA/MB)? Patient handling ergonomics seeks to maximize the ____ and _____ of/from patients. an elderly client is being admitted to the hospital for surgery. the nurse is reconciling the client's medications. the client is prescribed digoxin 0.125 mg daily, furosemide 40 mg two times a day, lanoxin 0.125 mg daily, metoprolol xl 25 mg once a day, and pravastatin (pravachol) 40 mg at hours of sleep daily. the nurse recognizes a problem when the nurse notes: Influence of human beings on the world's ecosystem is leading to the extinction of species and loss of bio-diversity. What are the primary causes of loss of bio-diversity? What solutions can you suggest? Write at least 250 words. Choose the number phrase that correctly matches the word phrase 18 less 6. 18 x 6 18 + 6 6 18 18 6 . Apply Concepts Are there more tissues or more organs in your bodyExplain your reasoning. During science lab, some students added small pieces of magnesium (Mg) to hydrochloric acid (HCl). They noticed that bubbles formed, the test tube got hot, and the magnesium disappeared.Which of the following is a sign that a chemical reaction has taken place in this experiment? A) odor B) formation of gas C) decrease in temperature D) formation of a precipitate Historically, which group has been required to wear distinctive clothing to indicate their race?OathletesO GypsiesO JewsO Germans identify the impact of each of the given transactions on the accounting equation: the company purchases supplies on credit Please discuss the evolution of MNE business strategy and how HR policies have been adapted to address the changes. explain the way to get wind energy for our use Which type of anthropologist would most likely study living savanna baboonsin their natural habitat?O PrimatologistsO Forensic anthropologistsO ArchaeologistsO Cultural anthropologistsO None of the answers are correct Can someone please tell me what this question is asking? Do I just list family members?? in a particular industry, products need a certain level of maintenance. customers can take the product to service companies to provide that maintenance. however, a number of manufacturers offer reasonably priced maintenance packages as well. this level of service after the sale indicates what about the industry? Julio is paid 1.3 times his normal hourly rate for each hour he works over 29 hours in a week. last week he worked 44 hours and earned $456.32 Look at the clock and listen to the statement. Indicate whether the statement is cierto or falso. Questions 0:13 / 0:48 1. Cierto falso 2. Cierto falso 3 need help !! Please somebody help How many valence electrons does Sodium (atomic #11) have? (1 pt)*1 point17811 Sebastian has 100$ he spits it to four of his friends how much does sebastian give? 5/8 of the pens in a box are blue pens. 4/5 of the remaining are red pens.what fraction of the pens are red ?