Hen a note receivable is honored, cash is debited for the note's _______

When Pete Mills went to withdraw $10,100 from the NFA Mutual fund, he was informed that the fund would charge 6 percent of the a

aivan3 [116]

Answer:

Option (A) is correct.

Explanation:

Given that,

Amount withdraw by Pete Mills = $10,100

Mutual charges on amount withdrawn = 6%

Therefore, the dollar amount of the withdrawal charge;

= Amount withdraw by Pete Mills × Percent charges by mutual fund on withdrawal of fund

= $10,100 × 0.06

= $606.00

Hence, the correct answer is $606.00

6 0

2 years ago

5. One-year interest rates are 2% in the U.S. and 5% in Canada. “Jackie the carry trader” borrows $3,000,000 to execute a carry

pogonyaev

A)

Firstly convert $3000000 into CAD

So, CAD is 3405221.33938

Invest CAD in Canada 5% for 1 year
In t= 1yr realize canadian investment with interest so, CAD on maturity

= CAD 3405221.33938 (1+ 0.05)

= CAD 3575482.40634

Again now convert CAD into US $ so, equivalent US $ realised on conversion = CAD 3575482.40634 * $0.865/ CAD

= $ 3092792.28148

US repayment = $ 3000000*(1+ 0.02)

= $ 3060000

That's why,

Profit over the year = $3092792.28148- $3060000

= $32792.28148

B) doesn't depreciates relative to USD

C) appreciates relative to Canadian dollar

D) BEEX = US$ borrowings to be repaid with interest/ CAD realized with interest on maturity

= $3060000/ CAD 3575482.40634

= 0.8558

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7 0

1 year ago

An investment adviser structured as a partnership lends money to a customer to buy recommended securities. Under NASAA's Model R

Eva8 [605]

A) acceptable, provided the securities are used as collateral for the loan and the loan conforms to the provisions of Regulation T.

B) acceptable, provided the loan is made under the provisions of Regulation T of the Federal Reserve.

C) unethical.

D) acceptable, provided the securities are used as collateral for the loan.

Answer: Unethical

Explanation: Based on the model and policy of the North America Securities Administrator's Association, the investment adviser cannot lend money to a customer to purchase recommended securities under the guise of being partners, such behavior is deemed UNETHICAL and in violation of the rule binding the practices and investment advisers and investment adviser representatives.

Customers can purchase securities by taking loans from recommended or regulated lender, broker or bank.

5 0

3 years ago

On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature

Sauron [17]

Answer:

The bonds were issued at $87,590,959

Explanation:

The bonds will be issued at the present value of the coupon and maturity discounted by the market rate

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 6,000,000.000 ( 100 million x 6%)

time 30 (2051 - 2021)

market rate 7% = 7/100 = 0.07

$6000000 \times \frac{1-(1+0.07)^{-30} }{0.07} = PV\\$

PV $74,454,247.1010

PV of the maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 100,000,000.00

time 30.00

rate 0.07

$\frac{100000000}{(1 + 0.07)^{30} } = PV$

PV 13,136,711.72

Total current value of the bonds:

PV coupon $ 74,454,247.1010

PV maturity $<u> 13,136, 711.7155 </u>

Total $87,590,958.8165

8 0

2 years ago

Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $500 million. Its balance sheet shows $110

solmaris [256]

Answer:

The best estimate of its stock price per share is $11.20

Explanation:

To compute stock price per share, the equation is shown below:

= Total number of equity ÷ Outstanding number of shares

where,

Total number of equity = Total corporate value - Notes payable - long term debt - preferred stock

= $500 - $110 - $90 - $20

= $280 million

And , outstanding number of shares is 25 million shares

Now, apply the above equation

So, stock price per share = $280 million ÷ 25 million shares = $11.20

Other accounts like retained earnings, total common equity is irrelevant

Hence, the best estimate of its stock price per share is $11.20

6 0

3 years ago

Hen a note receivable is honored, cash is debited for the note's ________ value