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Mandarinka [93]
3 years ago
15

A customer has just received a $100,000 inheritance and wants to know what to do with the money until he decides how to use it.

He thinks that he will make his decisions on what to do with the funds within 3 months. The BEST recommendation is for the customer to buy:"_______
a. Treasury Bills
b. Treasury Notes
c. Investment Grade Preferred Stock
d. Certificates of Deposit
Business
1 answer:
Umnica [9.8K]3 years ago
7 0

Answer:

The answer is A. Treasury Bills

Explanation:

Treasury bills (T bills) are short-term security(debt security) backed by the national government. The maturity period is always less than a year or a year at maximum.

Since the customer's horizon is 3 months, he should walk up to his bank and buy treasury bills. It is always risk free.

Tbills is usually sold at discount to par value i.e the purchase price is less than the face value(value at maturity) of the bill.

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All of the following are economic indicators EXCEPT
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The correct option is C, RETAIL SALES.
The income taxes, the GDP and the stock market can be used to gauge the economic status of a particular country, they are economic tools which are used to monitor the economy. 
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3 years ago
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Answer:

The correct option is $1.14

Explanation:

D1=D0*(1+g)

D1 is year 1 dividend

g growth rate of dividend of 15%

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D1=$0.54*1.15

D1=$0.621 00

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D2=$0.71415

We need to apply the discount factor to each of the dividends,the discount factor is 1/(1+r)^n

r is the rate of return of 11%

n is the relevant year

present value of year 1 dividend=$0.62100*1/(1+11%)^1

present value of year 1 dividend=$0.559459459

Present value of year 2=$0.71415*1/(1+11%)^2

Present value of year 2=$0.579620161

Total value present values=$0.559459459 +$0.579620161

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3 years ago
Eaton Tool Company has fixed costs of $340,400, sells its units for $80, and has variable costs of $43 per unit. a. Compute the
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Answer and Explanation:

The computation is shown below:

But before reaching to the final answers, first determine the contribution margin per unit which is

a. Contribution margin per unit =Sales-Variable cost  

= $80 - $43

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Now

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= $80 - $46

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Now

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= $270,000 ÷ 34

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Answer:

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