why do companies for huge financial needs go to the bond market? please type the answer...
why do companies for huge financial needs go to the bond market? please type the answer or write in print
Homework Answers
A fairly simple reason as to why companies prefer to borrow from the bond market for huge financial needs rather than a legitimate bank would be due to the interest rate differential. The rate of interest charged by investor companies is less than the interest charged by banks. Secondly, there are restrictions attached to the funds borrowed from the bank compared to corporations. With bonds, companies can issue new bonds irrespective of the ownership of the company.
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why do companies for huge financial needs go to the bond market?
please type the answer...
why do companies such as lyft and uber go public and not private? when they go...
why do companies such as lyft and uber go public and not private? when they go public why do they pick to be listed on that particular markey (physical market or OTC market? explain what those markets are and why you believe the compabg chose that certain market. then provide supporting arguments for the market not chosen and why the company should have chosen that market
Subject: CD Rates and the Bond Market Please answer the following question: Why did the bond...
Subject: CD Rates and the Bond Market Please answer the following question: Why did the bond market activity boom immediately after the financial crisis of 2007-2008? How were large firms and small firms affected differently by the crisis? Explain. Please at least 250 words. Please don't copy from anywhere and write in your own words. Thank You!
Why are financial markets (the bond market, the stock market, and the foreign exchange market) important...
Why are financial markets (the bond market, the stock market, and the foreign exchange market) important to the economy?
Use the government bond market and corporate bond market to show why the credit spread (defined...
Use the government bond market and corporate bond market to show why the credit spread (defined as corporate bonds yields minus government bonds yields) would increase when financial risk becomes higher.
Please Type Answer How might the risk associated with a city bond differ from the risk...
Please Type Answer How might the risk associated with a city bond differ from the risk associated with a General Obligation bond issued by the state? Would a private-activity bond be considered higher risk? Why or why not?
CH 17: 1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across...
CH 17: 1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries. Consider the following case: RTE Telecom Inc. is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations. A: Which of the following best describes the reason RTE Telecom Inc. has decided...
1. What is "risk in a financial sense. What is it that creates risk for companies? Please be specific. (3 pts.)...
1. What is "risk in a financial sense. What is it that creates risk for companies? Please be specific. (3 pts.) 2. Pick one of the 'subareas' of finance and provide an of what is involved in that subarea. (3 pts.) 3. Describe the role that ethics should play in finance. How do "fiduciary relationships affect this? (3 pts.) 4. Why do companies usually go through a "life-cycle" where they start out as sole proprietorships and then eventually become corporations....
Two companies.. Intel and Advanced Micro Devices (ADM). GO pull their financial statements and lets talk...
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In an oligopoly market, why don't individual companies change prices to be more competitive? (Select the...
In an oligopoly market, why don't individual companies change prices to be more competitive? (Select the 2 (two) correct answers) -1. If they increase prices, they lose too much market share and profits go down. -2. If they increase prices, they would make more money, and the other companies would also increase prices, leading to a price war that eventally would lower profits. -3. If they decreaes prices, they don't gain enough market share to offset the impact of the...
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1. What is "risk in a financial sense. What is it that creates risk for companies? Please be specific. (3 pts.) 2. Pick one of the 'subareas' of finance and provide an of what is involved in that subarea. (3 pts.) 3. Describe the role that ethics should play in finance. How do "fiduciary relationships affect this? (3 pts.) 4. Why do companies usually go through a "life-cycle" where they start out as sole proprietorships and then eventually become corporations....
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