Potential loss does not exceed the desired level

Assignment Help Financial Management

Reference no: EM131843027

1. A corporate bond ($1,000 par value) with a 9% coupon, paid semi-annually, is rated BB+. It is currently trading in the secondary market for $1,025.

If you wished to buy this bond, which financial-services professional would you need, and what is that professional's source of revenue?

You would use an investment banker, who would earn a commission.

You would use a securities underwriter, who would earn flotation costs.

You would use a stockbroker, who earns flotation costs.

you would use a stockbroker, who earns commissions

2. Spencer Tools would like to offer a special product to its best customers. However, the firm wants to limit its maximum potential loss on this product to the firm's initial investment in the project. The fixed costs are estimated at $32,000, the depreciation expense is $9,700, and the contribution margin per unit is $9.85. What is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level?

3,220 units

3,249 units

2,815 units

4,233 units

4,658 units

Reference no: EM131843027

Questions Cloud

Non-depository financial institution : Which of the following is a non-depository financial institution?

How to remedy the issue of corporate malfeasance : Compare and contrast with the policy it replaces . Articulate your ideas on how to remedy the issue of corporate malfeasance.

Explain what is currently known about question being asked : This is an investigation of explain what is currently known about the question being asked. Use background information from credible references.

Introduction to philosophy and have reading notes : Have you read about twenty questions: an introduction to Philosophy and have reading notes? Do you know how to prepare Philosophy essay exam in Fort hays state

Potential loss does not exceed the desired level : What is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level?

Example of what an argument in standard form looks like : Present your two arguments (one on each side of the issue) in standard form (with each premise and conclusion on a separate line) on the topic

Examples of ovid impotence : 1. Give at least two examples of Ovid's impotence and describe what that means for the poem.

Presentation - A global issue that affects business : Current Event Presentation Assignment. Possible topics include - The economic, ethical, or financial implications of a decision made by a company

Thereby reduce the volatility of our wealth : As individuals, most of us are risk averse. We buy insurance to reduce our risk exposures and thereby reduce the volatility of our wealth.

User Account

All Pages