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lorasvet [3.4K]
3 years ago
8

When inflation increases, the market value of outstanding fixed income securities will MOST likely:(A)Increase(B)Decrease(C)Rema

in the same(D)Become very volatile
Business
1 answer:
lubasha [3.4K]3 years ago
7 0

Answer:

(B)Decrease

Explanation:

Interest rate is inversely related to the market value of fixed interest income securities like bonds, certificate of deposits, preferred stocks e.t.c.

The higher the inflation, the higher the interest rates all things being equal. An increase in interest rate will drive down the market value of fixed income securities because inflation reduces the real returns on fixed income securities.

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The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Account
Nuetrik [128]

Answer:

Postal Service

The amount that would be reported for Stockholders' Equity at December 31, 2015 is:

= $130,000.

Explanation:

a) Trial Balance

December 31, 2015:  

Cash                                         $15,000

Accounts receivable                   11,000

Supplies                                       4,000  

Prepaid insurance (12-month)    6,000

Equipment                               210,000

Accounts payable                                    $ 18,000

Accumulated depreciation – equipment  28,000

Note payable, due 6/30/16                        70,000

Common stock                                           42,000

Retained earnings (1/1/15)                          60,000

Dividends                                   14,000

Service revenue                                        133,000

Advertising expense                 21,000

Depreciation expense              12,000

Insurance expense                    3,000

Rent expense                           17,000

Salaries and wages expense 32,000

Supplies expense                     6,000

Totals                                   $351,000 $351,000

Income Statement for the year ended December 31, 2015

Service revenue                                      $133,000

Advertising expense                 21,000

Depreciation expense              12,000

Insurance expense                    3,000

Rent expense                           17,000

Salaries and wages expense 32,000

Supplies expense                     6,000     $91,000

Net income                                              $42,000

Statement of Retained Earnings

For the year ended December 31, 2015

Retained earnings (1/1/15)                        $60,000

Net income                                                 42,000

Dividends                                                    (14,000)

Retained earnings (December 31, 2015) $88,000

Equity:

Common stock     $42,000

Retained earnings  88,000

Total equity         $130,000

4 0
3 years ago
A bill that deals with such a diverse set of unrelated issues as environmental issues, tax issues, and criminal justice issues i
Leona [35]

A bill that deals with such a diverse set of unrelated issues as environmental issues, tax issues, and criminal justice issues is likely to be an Omnibus bill

<h3>What is an Omnibus Bill?</h3>

An omnibus bill is a bill that covers divers issues which is coupled into one document.

It is a single document which is accepted in a single vote by a legislature but encompasses several measures into one or combines diverse subjects.

Due to their large size and scope, omnibus bills limit opportunities for debate and scrutiny.

Learn more about Omnibus Bill at brainly.com/question/18667507

3 0
2 years ago
Your firm's attorney has ________ power when giving legal advice.
Mandarinka [93]
The answer is expert power.
5 0
3 years ago
Partial annual report of a company shows the following information. Calculate the inventory turnover for this company. Net reven
grandymaker [24]

Answer: More than

Explanation:

Inventory turnover will be calculated as:

= Cost of goods sold / Average Inventory

Average Inventory will be:

= (Beginning inventory + Ending inventory) / 2

= ($5000 + $12300)/2

= $17300/2

= $8650

Then, Inventory turnover will be:

= Cost of goods sold / Average Inventory

= $67000/$8650

= 7.74

The correct option is "More than 4"

5 0
3 years ago
You need a 35-year, fixed-rate mortgage to buy a new home for $260,000. Your mortgage bank will lend you the money at an APR of
nexus9112 [7]

Answer:

$345,050

Explanation:

An annual percentage rate (APR) is the annual rate that is paid on amount borrowed or received from an investment. It is usually stated as a percentage which indicates the annual cost of funds over the term of a loan.

From the question we have:

Mortgage loan amount = $260,000

Monthly repayment amount affordable = $1,000

ARR = 5.55%

Monthly ARR = 5.55% ÷ 12 = 0.4625%

Mortgage loan tenure in years = 35

Mortgage Loan tenure in months = 35 × 12 = 420

ARR amount payable monthly = Mortgage Loan × Monthly ARR

                                                  = $260,000 × 0.4625%

                                                  =  $1,202.50

Total ARR amount payable = ARR amount payable monthly × Mortgage Loan tenure in months

Total ARR amount payable = $1,202.50 × 420

                                             = $505,050.00  

Total mortgage loan to repay after 35 years = Mortgage loan amount + Total ARR amount payable

Total mortgage loan to repay after 420 months = $260,000 + $505,050

                                                                                = $765,050  

Total repayment amount affordable = Monthly repayment amount affordable × Mortgage Loan tenure in months

Total repayment amount affordable = $1,000 × 420

                                                            = $420,000

 Balloon payment after 420 months = Total mortgage loan to repay after 420 months - Total repayment amount affordable

Balloon payment after 420 months = $765,050 - $420,000

                                                           = $345,050  

Therefore, the balloon payment have to be as large as $345,050 to keep monthly payments at $1,000.

7 0
3 years ago
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