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2 years ago

Which of these options for saving money offers the lost liquidity?

Business

1 answer:

daser333 [38]2 years ago

8 0

The option of saving money that offers the most liquidity is a piggy bank. (option C)

<h3>What is liquidity?</h3>

Liquidity can be described as the ease with which an asset can easily be converted to cash. Paper currency and coins is the most liquid assets. Real estate is illiquid because it takes a long time for a real estate asset (e.g a house) to be sold and proceeds converted to cash.

Liquid assets earn less returns when compared with assets that are less liquid. This is because illiquid assets earn an illiquidity premium. An illiquidity premium compensates holders for holding an illiquid asset.

Money in a piggy bank is already in cash or coins and there is no need to convert it to cash again. Also, money in a piggybank is more accessible than the other options.

To learn more about liquidity, please check: brainly.com/question/15691477

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You find a certain stock that had returns of 16 percent, −9 percent, 23 percent, and 24 percent for four of the last five years.

Vilka [71]

Answer:

stock's returns = (0.16 - 0.09 + 0.23 + 0.24 + x) / 5 = 0.144

0.16 - 0.09 + 0.23 + 0.24 + x = 0.144 x 5

0.54 + x = 0.72

missing return (x) = 0.72 - 0.54 = 0.18 = 18%

variance = [(0.16 - 0.144)² + (-0.09 - 0.144)² + (0.23 - 0.144)² + (0.24 - 0.144)² + (0.18 - 0.144)²] / 5 = (0.000256 + 0.054636257 + 0.007396 + 0.009216 + 0.001296) / 5 = 0.014560051

standard deviation = √0.014560051 = 0.1207 = 12.07%

4 0

3 years ago

Firm X has total earnings of $49,000, a market value per share of $64, a book value per share of $38, and has 25,000 shares outs

sveticcg [70]

Answer:

$1,456,000

Explanation:

Calculation to determine the value of the total equity of the combined firm, XY, if the purchase method of accounting is used

First step is to calculate the Assets from Firm X

Assets from Firm X = 25,000 ( $38 )

Assets from Firm X= $950,000 (book value)

Second step is to calculate the Assets from Firm Y

Assets from Firm Y = 22,000 ( $21 )

Assets from Firm Y = $462,000 (Market value)

Third step is to calculate the Goodwill

Goodwill = 22,000 ($21 + 2 ) - $462,000

Goodwill= $44,000

Now let calculate the the total equity of the combined firm, XY,

Total equity of XY = $950,000 + $462,000 + $44,000

Total equity of XY = $1,456,000

Therefore the value of the total equity of the combined firm, XY, if the purchase method of accounting is used will be $1,456,000

6 0

2 years ago

Select items that affect incentives for people to produce and exchange goods and services.

Finger [1]

The items that affect incentives for people to produce and exchange goods and services are:

liability rules
property rights
contract enforcement

<span>These factors will hinder the exchange of goods and services to people.</span>

8 0

3 years ago

Read 2 more answers

To ensure efficient, clear, communication, the national incident management system characteristics recommend the use of:

Flauer [41]

management system characteristics recommend the use of:

Technical language

4 0

3 years ago

Read 2 more answers

Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth

Oksana_A [137]

Answer: $53.94

Explanation:

Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.

Terminal value = D₄ / ( required return - growth rate)

= (2.35 * 1.22³ * 1.05) / (12 % - 5%)

= $64

D₁ = 2.35 * 1.22 = $2.867

D₂ = 2.867 * 1.22 = $‭3.49774‬

D₃ = ‭3.49774‬ * 1.22 = $‭4.2672428‬

Share price = (2.867 / (1 + 12%)) + (‭3.49774‬ / 1.12²) + (‭4.2672428‬ / 1.12³) + (64/1.12³)

= $53.94

7 0

3 years ago