Answer: c. recommend Torex, but she must disclose her investment in Torex to the client.
Explanation:
The investment advisor is allowed to recommend Torex to her clients as she believes that it is financially sound and undervalued which means that there is a chance for her clients to earn a good enough return.
She must however disclose to them that she has an investment in the company so that they can decide on their own if this may have biased her decision towards the company as a viable investment option.
Answer:
Neither the costs are identical.
Explanation:
In the given scenario both of the airlines offer similar services to customers and the only difference is the way their aircraft was obtained. While the first company bought its own for $500,000 the second one is renting theirs for $30,000.
Their costs are however considered to be the same because if the first company goes out of business it's estimate of their plane is $30,000 per year. So even when they owned the plane cost of running it was the same as the second company.
A bond issued by a new chain of Brazilian-style restaurants pays highest interest rate.
Option D
<u>Explanation:
</u>
A bond is an expression of the bond issuer's indebtedness for the holders of securities. The interest rate is the amount that the lender pays for his capital need. The largest factor is the sum of money loaned. The banks therefore pay you a deposit interest rate. You borrow the money from you.
Though they may be highly competitive, their interest rates are not equivalent. If a bank assumes that the debt is less likely, it pays higher interest rates. Therefore, banks will always offer revolving loans such as credit cards, a higher interest rate.
Such types of points are more difficult to manage. Financial institutions also charge people they think to be dangerous higher rates. The higher your ranking, the smaller your interest rate.
The answer to this question is: Effective manager
in business, effectiveness refers to the ability for a person to make use of all resources that available to him/her in order to accomplish the goal.
This trait is considered as the most desired trait that most of the shareholders seek when they're choosing the leader for their company.
Answer:
Wenjing
The par value that would result in the return the bond broker promises is:
= $1,333.
Explanation:
a) Data and Calculations:
Bond amount paid = $2,000
Quarterly coupon payments = $40
Remaining coupon payments = 12
Bond maturity period = 3 years (12/4)
Promised returns per quarter = 3%
Par value of bond = Quarterly premium/Quarterly returns in percentage = $1,333 ($40/0.03)
Check: 3% of $1,333 = $40
This implies that the bond's annual interest rate = 12% (3% * 4)