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TiliK225 [7]
1 year ago
8

Investments in debt securities acquired principally for the purpose of selling them in the near term are classified as ________

securities.
Business
1 answer:
tensa zangetsu [6.8K]1 year ago
8 0

Investments in debt securities acquired principally for the purpose of selling them in the near term are classified as<u> trading</u> securities.

The definition of investment is an asset that is purchased or invested to build wealth and save money from hard-earned income or capital appreciation. The importance of investment is primarily to gain an additional source of income or to make a profit from the investment over a period of time.

Form of investment shares. Knead. Mutual funds and ETFs. bank product. option. Savings for pension, retirement, and education. Your investment allows you to be independent and not depend on other people's money when you need it financially. You can pay enough for your needs and desires in life.

Learn more about Investments here: brainly.com/question/24703884

#SPJ4

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The variable overhead rate is $9.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,140 per m
Pani-rosa [81]

Answer:

Cash= 87,910 + 9.3*direct labor hour

Explanation:

Giving the following information:

The variable overhead rate is $9.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,140 per month, which includes depreciation of $18,230.

Cash= (106,140 - 18,230) + 9.3*direct labor hour

Cash= 87,910 + 9.3*direct labor hour

8 0
3 years ago
Calculate the firm’s WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equ
tester [92]

Answer:

Before tax cost of debt is 7.12%

After tax cost of debt is 4.27%

Cost of equity is 10%

Explanation:

The before-tax cost of debt can be determined using excel rate formula as found below:

=rate(nper,pmt,-pv,fv)

nper is the number of semiannual payments the bond has i.e 20*2=40

pmt is the amount of semiannual payment=$1000*7.5%*6/12=$ 37.50  

pv is the current price =$1000*104%=$1,040.00  

fv is the face value of $1000

=rate(40,37.50,-1040,1000)=3.56%

The 3.56% is semiannual yield, hence 7.12% per year (3.56%*2)

After-tax cost of debt=7.12%*(1-t) where is the tax rate of 40% or 0.4

after-tax cost of debt=7.12%*(1-0.40)=4.27%

Cost of equity is determined using the below CAPM formula:

Ke=Rf+Beta*(Mr-Rf)

Rf is the risk free rate of 4%

Beta is 1.2

Mr is the market return of 9%

Ke=4%+1.2(9%-4%)=10.00%

7 0
2 years ago
You want to buy a new car, but you can make an initial payment of only $1,200 and can afford monthly payments of at most $850. a
Leviafan [203]

Answer:

a. The maximum price you can pay for the car is <u>$33,477.87</u>.

b. The maximum price you can pay for the car is <u>$39,411.78</u>.

Explanation:

a. If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can be determined as follows:

<u>Calculation of the Present Value (PV) of the monthly payments</u>

To calculate, the formula for calculating the present value of an ordinary annuity is used as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the monthly payments = ?

P = Monthly payment = $850

r = monthly interest rate = annual percentage rate (APR) / 12 = 12% / 12 = 1%, or 0.01

n = number of months = 48

Substitute the values into equation (1) to have:

PV = $850 * ((1 - (1 / (1 + 0.01))^48) / 0.01)

PV = $850 * 37.9739594934803

PV = $32,277.87

<u>Calculation of the maximum price you can pay for the car</u>

Given in the question is initial payment of only $1,200.

The present value of the monthly payments calculated above is $32,277.87.

Therefore, we have:

Maximum price = Initial payment + Present value of the monthly payments = $1,200 + $32,277.87 = $33,477.87

Therefore, the maximum price you can pay for the car is <u>$33,477.87</u>.

b. How much can you afford if you finance the purchase over 60 months? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can also be determined as follows:

<u>Calculation of the Present Value (PV) of the monthly payments</u>

To calculate this, we use equation (1) in part (a) above, change number f months to 60 and proceed as follows:

PV = Present value of the monthly payments = ?

P = Monthly payment = $850

r = monthly interest rate = annual percentage rate (APR) / 12 = 12% / 12 = 1%, or 0.01

n = number of months = 60

Substitute the values into equation (1) to have:

PV = $850 * ((1 - (1 / (1 + 0.01))^60) / 0.01)

PV = $850 * 44.9550384062241

PV = $38,211.78

<u>Calculation of the maximum price you can pay for the car</u>

Given in the question is initial payment of only $1,200.

The present value of the monthly payments calculated above is $38,211.78.

Therefore, we have:

Maximum price = Initial payment + Present value of the monthly payments = $1,200 + $38,211.78 = $39,411.78

Therefore, the maximum price you can pay for the car is <u>$39,411.78</u>.

5 0
2 years ago
A corporation is issuing 5,000,000 shares of stock at a public offering price of $13 per share. The manager of the underwriting
pentagon [3]

Answer:

$12.20 per share for a total of $61,000,000

Explanation:

Calculation to determine how much will the managing underwriter's fee will total:

First step is to calculate the underwriting risk. Amount

Underwriting risk=($0.65 - $0.40)

Underwriting risk=$0.25

Second step is to calculate The total spread is

Total spread=($0.15+ $0.25 +$0.40 )

Total spread=$0.80

Now let determine the amount The issuer will receive and the Total

Amount received = ($13.00 - $0.80)

Amount received=$12.20 per share

Total= ($12.20 x 5,000,000 shares)

Total = $61,000,000

Therefore When the issue is completely sold, the managing underwriter's fee will total:$12.20 per share for a total of $61,000,000

8 0
3 years ago
Which of the following statements is true? a. A college degree does not influence the earnings of workers. b. The median pay of
ICE Princess25 [194]

Answer:

b. The median pay of economics majors increased more in dollar terms than any other majors in 2015.

Explanation:

As it can be seen from the various sources that tha major in economics represents the largest per dollar rise for all major in the year 2015

Due to which it brings down the requirement for more economists also the word economics is not certain. Also, for the entry level jobs in the economics field, the minimum qualification should be masters

Therefore according to the given case, the option B is correct

7 0
3 years ago
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