Typically, the interest rate on corporate bonds will be ________ the more restrictions are placed on management through restrictive covenants, because ________
A) higher; corporate earnings will be limited by the restrictions
B) higher; the bonds will be considered safer by bondholders
C) lower; the bonds will be considered safer by buyers
D) lower; corporate earnings will be higher with more restrictions in place
C
You might also like to view...
You are the owner of a small Internet company. You are planning a public offering in 12 months. You ask your accountant to prepare an optimistic business model that shows a greater profitability potential than a conservative estimate would produce. When
the accountant questions your profitability assumptions, you remind him that he has been given 10,000 shares of the company stock at a low price. A public offering would dramatically increase the value of those shares. Discuss the ethical issues faced by the owner and the accountant. How should they be resolved?
Willow Trees Inc. makes seven different products, four of which are within their first year of existence. The demands for all products, especially the newest ones, are not well known
The newest products are intended to complement their existing products and take different materials, different processes, and an entirely different set of labor skills for production. Which of these statements regarding their likely sales and operations planning activities is BEST? A) The planning values for the oldest items in the product line should be used for the new items in the product line. B) Willow Trees Inc. should avoid using sales and operations planning until their product line matures. C) Willow Trees Inc. should use top-down planning. D) Willow Trees Inc. should use bottom-up planning.
Few purchasing managers have been able to turn over any of their order placing to computers because so few organizational purchases are routine.
Answer the following statement true (T) or false (F)
Many marketers claim that ____ will become the world's largest market.
A. Japan B. the United States C. China D. Thailand E. India