All categories

1 year ago

_______ is considered the marketspace that bring lenders and borrowers together.

Business

1 answer:

nika2105 [10]1 year ago

3 0

<u>The financial market</u> is considered the marketspace that bring lenders and borrowers together.

The Financial markets is considered any marketplace where the trading of securities may occurs, including the bond market, stock market, forex market, and derivatives market, and many others. This way financial market bring lenders and borrowers together.

These financial markets play a great role in facilitating the smooth operation of the capitalist economies, thus by allocating resources and creating liquidity for businesses and entrepreneurs. Also, such markets trade in all types of securities.

Hence, these financial markets make it easy for buyers and sellers to trade their financial holdings while coming together.

To learn more about financial markets here:

brainly.com/question/16623249

#SPJ4

You might be interested in

Paw Salon currently services an average of 74 pets per day. Observations in recent weeks show that its utilization is about 90 p

Liula [17]

Answer:

50 customers per day

Explanation:

For computing the capacity required customers per day, first, we have to compute the current demand per day which is shown below:

Current demand = Average number of pets per day × estimated percentage

= 74 pets × 60%

= 44.4 per day

Now the capacity required per day would be

= (Current demand per day) ÷ (1 - capacity cushion percentage)

= 44.2 ÷ (1 - 0.12)

= 50.22 per day

3 0

3 years ago

]by generating and delivering timely and relevant information supported by networks, _____ creates new opportunities for conduct

Alina [70]

The British Empire.

It isn't descriptive enough to seem to be AI or internet.

8 0

3 years ago

What factors make capital appreciation bonds (CABs) a controversial method for local governments to finance projects

sineoko [7]

The factors that make capital appreciation bonds (CABs) a controversial method for local governments to finance projects include "Local governments tend to owe investors way above the amount borrowed."

Another factor that makes capital appreciation bonds (CABs) a controversial method for local governments to finance projects is that they enable local governments to fund new projects without raising taxes.

Capital appreciation bonds (CABs) is often described as a form of municipal security whereby its interest on principal rises and compounds until maturity.

Capital appreciation bonds (CABs) allows investor earns a sole payment indicating the face value of the bond and all accrued interest.

Hence, in this case, it is concluded that Capital appreciation bonds (CABs) are a controversial method of financing projects.

Learn more here: brainly.com/question/14325978

5 0

2 years ago

Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $

drek231 [11]

Answer: a. $14,000

b. $14,106

c. January

2. $15,535

Explanation:

a. If Hank sends the bill in December.

Tax rate is 30% this year.

Amount is $20,000

After Tax Income = 20,000 * (1 - tax)

= 20,000 ( 1 - 30%)

= $14,000

b. If Hank pays Next year

Tax rate is 33%

After tax return rate of 12%

Amount is 20,000

Tax = 20,000 * 33%

= $6,600.

Because this is next year, the present value of the tax needs to be computed for better comparison.

With an after tax return of 12%, the PV will be,

= 6,600 * PV factor ( 12%, 1 period)

= 6,600 * 0.893

= $5,894

The income therefore will be,

= $20,000 - 5,894

= $14,106

c. Hank should pay in January as he would make more income.

2. Tax rate is 25% next year and income is to be received next year.

Tax = 20,000 * 25%

= $5,000

PV of $5,000 = 5,000 * PV Factor (12%, 1 period)

= 5,000 * 0.893

= $4,465

After tax income = 20,000 - 4,465

= $15,535

5 0

3 years ago

The market capitalization rate on the stock of Aberdeen Wholesale Company is 14%. Its expected ROE is 15%, and its expected EPS

Digiron [165]

Answer:

Explanation:

Data provided in the question:

The market capitalization rate on the stock = 14%

Expected ROE = 15%

Expected EPS = $56

Firm's plowback ratio = 60%

Based on the above information

The computation of the P/E ratio is shown below

But before that, we need to do the following calculations

As we know that

Payout ratio = (1 - plowback ratio )

= (1 - 0.6 )

= 0.4

Now

Growth rate = ROE × Retention ratio

= 0.15 × 0.60

= 9%

And,

Dividend for next period i.e D1 is

= EPS × Payout ratio

= $6 × 0.4

= $2 .4

So,

Current price = D1 ÷ ( Market capitalization rate - Growth rate )

= $2.4 ÷ ( 0.14 - 0.09 )

= $48

And, finally

P/E ratio is

= (Current price) ÷ (EPS)

= $48 ÷ $6

= 8

4 0

3 years ago