Answer: He is aware that if interest rates <u>increase</u>, the potential earnings power of the cash flow from his investments will increase. In particular, he is concerned that a decline in interest rates might lead to <u>less</u> annual income from investments.
Frank is most concerned about protecting agains the "b. reinvestment rate risk" because it is the risk that interest rates will fall and therefore the investor must reinvest the cash flows of current assets at a lower rate than he did at the beginning. And as a consequence there is a decrease in income.
True or false: TRUE. Because Cash flows receivable in the short term are closer to being reinvested than cash flows receivable in the long term.
<span>The federal organization charged with monitoring illegal workplace discrimination is called the equal employment opportunity commission (EEOC).
When you are applying for a job or working for a company it is illegal for them to not pick you of something based on what you look like or your gender, nationality and the characteristics that make you, you. Each person regardless of what they look like have to be treated the same and given equal employment opportunity. If there is known discrimination in the workplace, there is a hotline that employees can call to report their workplace to the EEOC.
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Answer:
Purchase cost= $396,000
Explanation:
Giving the following information:
Each unit requires 3 pounds of direct material at $12 per pound
Beginning inventory= 2,000 pounds
Desired ending invnetory= 5,000 pounds
Production= 10,000 units
<u>To calculate the direct material purchases, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= 10,000*3 + 5,000 - 2,000
Purchases= 33,000 pounds
Purchase cost= 33,000*12= $396,000
Answer:
Positive questions.
Explanation:
Positive questions is a type of questions that can be answered with economic tools without interjecting any value judgment as to whether the particular outcome is desirable or harmful.
Hence, positive questions in economics are primarily fact based and objective, thus the statements (questions) are descriptive, concise, clearly measurable, precise and without any value judgment.
For instance, asking if education trust funds by the government increases public expenditures is an example of a positive question.
Answer:
p = $2.51
Explanation:
Given:
- D = $0.50
- Stock price: $29 (s)
- Interest rates: 10%.
- Strike price of $30 : $2 (c)
To find the the price of a European put option, we use here pit call parity that is
:
c - p = s - k 
- D
<=> p = c - s + k + D
<=> p = 2 -29 + 30
+ 0.5
<=> p = $2.51
Hope it will find you well
