Question

In: Economics

The state of Texas is seeking to raise $500 million through the sale of general obligation...

The state of Texas is seeking to raise $500 million through the sale of general obligation bonds. Which of the following will support the repayment of the bond issue?

Select one:

a. User Fees

b. Property Taxes

c. Sales taxes

d. None of the above

The state of Massachusetts is seeking to raise $300 million through the sale of revenue bonds to repair the roadways. Which of the following is correct?

Select one:

a. The offering will be advertised in the daily bond buyer.

b. None of choices.

c. These bonds will be issued through a negotiation.

d. The bonds will be subject to a statutory debt limit.

The city of Miami is seeking to raise $10 million through the sale of general obligation bonds to repair the high school's football field. The bonds are going to be issued ex-legal. Which of the following is correct?

Select one:

a. The bonds' legal claim to the tax revenue is in doubt.

b. The bonds received no legal opinion.

c. The bonds received an unqualified legal opinion.

d. None of the above.

Solutions

Expert Solution

1) The state of Texas is seeking to raise $500 million through the sale of general obligation bonds. Which of the following will support the repayment of the bond issue?

The Correct Option is b) Propery Taxes. A limited or Unlimited General Obligation Bonds allows State of Texas to increase the property taxes when it is necessary to support the repayment of the bond issue.

2) The state of Massachusetts is seeking to raise $300 million through the sale of revenue bonds to repair the roadways. Which of the following is correct?

The Correct Option is a) The offering will be advertised in the daily bond buyer. The Bond buyer is a trade publication for members of the municipal bond industry which began as a daily newspaper 100 years ago.

3) The city of Miami is seeking to raise $10 million through the sale of general obligation bonds to repair the high school's football field. The bonds are going to be issued ex-legal. Which of the following is correct?

The Correct Option is b) The bonds received no legal opinion. Ex-legal is a muncipal bond that is delivered without a legal opinion from a bond law firm.


Related Solutions

Villalpando Winery wants to raise ​$15 million from the sale of preferred stock. If the winery...
Villalpando Winery wants to raise ​$15 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred​ stock, what annual dividend will it have to promise if investors demand a return of a.  11​%? b.  16​%? c.  9​%? d.  7​%? e.  5​%? f.  4​%? What annual dividend will it have to promise if investors demand a return of (A-F)
Villalpando Winery wants to raise ​$25 million from the sale of preferred stock. If the winery...
Villalpando Winery wants to raise ​$25 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred​ stock, what annual dividend will it have to promise if investors demand a return of a. 12%? b. 15%? c. 8%? d. 7%? e. 5%? f. 3%?
Please turn in a 500-700 words in length paper following APA formatting. General Tools is seeking...
Please turn in a 500-700 words in length paper following APA formatting. General Tools is seeking ways to maintain and improve cash balances. As company controller, you have proposed the sale and leaseback of much of the company's equipment. As seller-lessee, General Tools would retain the right to essentially all of the remaining use of the equipment. The term of the lease would be six years. A gain would result on the sale portion of the transaction. The lease portion...
California issued debt (general obligation bonds) to fund the state budget and must now repay what...
California issued debt (general obligation bonds) to fund the state budget and must now repay what it borrowed. Given the facts above, please indicate if you think that California’s debt is more likely to be internal or external. How do you know? Furthermore, is the repayment of state and local government debt likely to drain purchasing power from citizens in those areas?
The average college student goes through 500 disposable cups in a yeat. To raise environmental awareness,...
The average college student goes through 500 disposable cups in a yeat. To raise environmental awareness, a student group at a large university volunteered to help count how many cups were used by students on their campus. A random sample of 50 student's results found that they used a mean of 476 cups with a standard deviation of 42 cups. At the 0.01 level of significance, is there sufficient evidence to conclude that the mean differs from 500? USE THE...
A Superannuation fund is to restructure its balance sheet through the sale of $20 million of...
A Superannuation fund is to restructure its balance sheet through the sale of $20 million of Treasury bonds that mature on 31 December 2024. The bonds pay a fixed half-yearly coupon of 5.00 per cent per annum. Settlement date for the sale is 20 August 2020. Current yields on Treasury bond are 6.50 per cent per annum. You are required to calculate: n (number of periods) i (current yield) C (coupon payment) k (fraction of elapsed interest period since the...
A Superannuation fund is to restructure its balance sheet through the sale of $20 million of...
A Superannuation fund is to restructure its balance sheet through the sale of $20 million of Treasury bonds that mature on 31 December 2024. The bonds pay a fixed half-yearly coupon of 5.00 per cent per annum. Settlement date for the sale is 20 August 2020. Current yields on Treasury bond are 6.50 per cent per annum. You are required to calculate: a) n (number of periods) b) i (current yield) c) C (coupon payment) d) k (fraction of elapsed...
Essay 250-500 How does the design and operation of Texas state legislature reflect the constitutional culture...
Essay 250-500 How does the design and operation of Texas state legislature reflect the constitutional culture of Texas?
create a Eliminate-Reduce-Raise-Create Grid for General Dynamics. Briefly state your rationale.
create a Eliminate-Reduce-Raise-Create Grid for General Dynamics. Briefly state your rationale.
5. Anthony Manufacturing plans to raise $100 million through a new securities issue. It is considering...
5. Anthony Manufacturing plans to raise $100 million through a new securities issue. It is considering issuing either common stock or debt. Anthony’s common stock is currently trading at $50 per share; it has $1 billion of assets, $500 million of debt, and $500 million of common stock outstanding; its EBIT is $80 million; and its income tax rate is 40%. The interest rate on its debt is 6%, and new debt would also require a 6% interest rate. a....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT