Explaining parent-subsidiary relationship between companies

Assignment Help Finance Basics

Reference no: EM1310359

1) 1 year ago, Alpha Supply issued fifteen year bond at par. Bonds have the coupon rate of 6.5% and pay interest annually. Today, market rate of interest on these bonds is 7.2%. How does the price of these bonds today compare to issues price?

2) Differentiate between unique economic functions performed by financial intuitions and financial markets. Briefly explain at least 3 channels or examples of such linkages between financial markets and financial institutions.

3) Parent-Subsidiary relationship between companies develops when one company owns greater than 50% of another company voting stock. Select one:

i) True
ii) False

4) Defined contribution pension plan can subject company to important potential liability as the company is committing to give fixed/established benefits to its employees under plan upon their retirement at some point in the future. Select one:

i) True
ii) False

Reference no: EM1310359

Questions Cloud

Computing bond-s value : By previous agreement company will omit the coupon interest payments in years 8, 9, and 10. These payments will be repaid, without interest, at maturity. Compute the bond's value?

What is magnitude of the vertical component : A potter's wheel having a radius 0.47 m and a moment of inertia 10.9 kg•m2 is rotating freely at 46 rev/min. The potter can stop the wheel in 7.0 s by pressing a wet rag against the rim and exerting a radically inward force of 68 N. Find out the effe..

Finding an academic or scholarly article : Search the online library and find an academic or scholarly article about one of the concepts covered in this learning plan

Find out the liability for this loan : Both held-to-maturity debt securities and available-for-sale debt securities must be reported at their fair market value at year-end.

Explaining parent-subsidiary relationship between companies : Parent-Subsidiary relationship between companies develops when one company owns greater than 50% of another company voting stock.

How much does the board weigh : All distant galaxies are moving away from us. Describe why this does not imply that we are at the center of universe.

Computation of growth rate and interest rate : Computation of growth rate and interest rate and What is the annual compound growth rate if the dividends

Differences between accounting and taxable income : At December 31, 2012, Vermont Industries reported three temporary differences between accounting and taxable income:

Recognition of the problem by the hsbc : What problem did the HSBC face in this case? What people, technology, and the organization factors were responsible for problem? Did HSBC management correctly recognize the problem?

User Account

All Pages