As a result of Institutional Investors having so many shares, they are able to <u>remove some </u><u>or even </u><u>all </u><u>of the </u><u>members </u><u>of the </u><u>Board</u><u>. </u>
<h3>Who are Board members?</h3>
- People chosen to represent the shareholders by overseeing the affairs of management.
- They are voted in by shareholders.
Institutional Investors such as Mutual Funds, own so much stock in companies that their vote can remove board members. With enough influence and voting strategy, they could even remove the entire Board.
Find out more on Board of Directors at brainly.com/question/728335.
Answer:
case 1: 12.49%
case 2: 21.20%
case 3: 9.48%
case 4: 13.98%
Explanation:
the rate stands for the period between the last day of the discount and the last day the invoice can be cancelled at nominal.
we equalize this with a rate which capitalize annually and solve for this rate:
![(1+discount)^{(net-d_t)/365} =1+r_e\\ r_e = \sqrt[(net-d_t)/365]{1+discount}](https://tex.z-dn.net/?f=%281%2Bdiscount%29%5E%7B%28net-d_t%29%2F365%7D%20%3D1%2Br_e%5C%5C%20r_e%20%3D%20%5Csqrt%5B%28net-d_t%29%2F365%5D%7B1%2Bdiscount%7D)
case 1:
![r_e = \sqrt[(60-10)/365]{1+0.016}](https://tex.z-dn.net/?f=r_e%20%3D%20%5Csqrt%5B%2860-10%29%2F365%5D%7B1%2B0.016%7D)
re = 0.1249 = 12.49%
case 2:
![r_e = \sqrt[(60-10)/365]{1+0.026}](https://tex.z-dn.net/?f=r_e%20%3D%20%5Csqrt%5B%2860-10%29%2F365%5D%7B1%2B0.026%7D)
re = 0.2120 = 21.20%
case 3:
![r_e = \sqrt[(75-10)/365]{1+0.016}](https://tex.z-dn.net/?f=r_e%20%3D%20%5Csqrt%5B%2875-10%29%2F365%5D%7B1%2B0.016%7D)
re = 0.0948 = 9.48%
case 4:
![r_e = \sqrt[(60-15)/365]{1+0.016}](https://tex.z-dn.net/?f=r_e%20%3D%20%5Csqrt%5B%2860-15%29%2F365%5D%7B1%2B0.016%7D)
re = 0.13977 = 13.98%
A <u>Collateralized debt obligation</u> pays out cash flows from a collection of assets in different tranches, with the highest.
A collateralized debt obligation (CDO) is a complex structured finance product that is subsidized through a pool of loans and different property and offered to institutional buyers. A CDO is a specific form of spinoff due to the fact, as its call implies, its value is derived from some other underlying asset.
For example, if the bank of the US loaned you $10,000 at 10% interest for 5 years, your mortgage can be bought by a person else. The patron of the loan will become entitled to the payments you're making on the loan. With numerous of that money owed in the CDO's portfolio, it is able to then use them as assets to underpin their debt issuance.
A Collateralized Debt obligation (CDO) is a synthetic investment product that represents special loans bundled together and sold with the aid of the lender in the market. The holder of the collateralized debt responsibility can, in principle, acquire the borrowed quantity from the authentic borrower at the end of the mortgage length.
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Answer:
Controllable margin =$125,000
Return on investment = 20%
Explanation:
<em>Controllable margin is the difference between the sales revenue and the controllable cost. Controllable costs include variable and fixed cost directly under the control of the manager and which are influenced by his decisions.</em>
Controllable margin - Sales revenue - variable cost - controllable fixed cost
Controllable margin= $500,000 - $300,000 - 75,000 = $125,000
Controllable margin =$125,000
Return on investment = (controllable margin/ Average investment) × 100
= (125,000/625,000) × 100 = 20%
Return on investment = 20%
Answer:
a. Inventory Turnover = 5.299 times or 5.30 times
b. Days in Inventory = 69 days
Explanation:
a)
To calculate the inventory turnover, we first need to find out the avergae inventory. The average inventory is calculated by adding the opening and the closing inventory and dividing the sum by 2.
- Average Inventory = (35750 + 63500) / 2 = $49625
The inventory turnover is,
- Inventory Turnover = Cost of Sales / Average Inventory
- Inventory Turnover = 263000 / 49625 = 5.299 times or 5.3 times
b)
Days in inventory is the period for which, on average, the inventory is kept and sold completely.
We can calculate days in inventory simply by dividing the number of days for which we are calculating the ratio for, say in this case one years or 365 days by the inventory turnover ratio we calculated.
Days in inventory = 365 / 5.30 = 68.8679 or 69 days
