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PSYCHO15rus [73]
3 years ago
9

When the price of a bond is above the equilibrium price, there is excess ___ in the bond market and the price will ___.

Business
1 answer:
Setler [38]3 years ago
8 0
C. When price is too high, people are less willing to purchase the good, so demand is lower when price is higher. (Demand curve is always slopping downwards as a result). As the price is high, producers are more willing to sell their goods (I.e. bonds) which will give them more money per unit good being sold. This will result in Quantity Supplied (Qs) being greater than Quantity Demanded (Qd), and so, there is a surplus of bonds in the market. This will cause a downward pressure to apply on price, so that Qd = Qs eventually.

Hope this helps!
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Consider the following information: State of Economy Probability of State of Economy Portfolio Return If State Occurs Recession
mr Goodwill [35]

20.94% is the expected rate of return

<u>Explanation:</u>

<u>The following formula is to be used for the expected rate of return </u>

Expected rate of return = Sum of probability multiply with rate of return

=(0.22 * .16)+(.47 * .12)+(.31 * .38)  

= 0.2094

= 20.94%

The expected rate of return means such return which an investor expects from the amount that has been invested by him into the business organization. It is significant to calculate the rate of return in order to find out the viability of a company.

7 0
3 years ago
Which of the following statements is correct?A.The payment of a cash dividend reduces net income.B.Cash received from issuing co
ioda

Answer:

B.Cash received from issuing common stock to stockholders is reported as a financing activity cash flow within the statement of cash flows.

Explanation:

As when common stock is issued, it provides cash to the company, for any kind of investments, or expense to be made, for running the business.

Financing activities are those which arrange monetary assets generally cash for the company, issue of securities, issue of bonds, borrowings as loans or note payable.

Thus, the statement B is correct.

Further dividends are provided after tax, and are distribution from net income, but not shown under that.

Providing services on account will provide revenue and net income will increase.

Purchasing of any equipment is investing as it will create an asset for the company.

7 0
3 years ago
Scott Bennett is preparing his balance sheet and income and expense statement for the year ending June 30, 2016. He is having di
dybincka [34]

Answer:

a. Expense

b. Expense and Liability

c. Assets and Liability

d. Expense and Liability

e. Expense and Asset

f. Assets

Explanation:

Assets are resources held or controlled by the entity as a results of a past event, for which future economic benefits are expected to flow to the entity, liabilities are present obligations of an entity as a result of a past event for which future economic benefits would flow out of the entity. Income and expense are elements of the income statements while the assets and liabilities are elements of balance sheet along with equities. Considering the lines

a. Scott rents a house for $1,350 a month - This is an expense except for when paid for in advance then it becomes an asset.

b. On June 21, 2016, Scott bought diamond earrings for his wife and charged them using his MasterCard. The earrings cost $900, but he hasn’t yet received the bill. - This represents both expense and a liability as he is yet to receive the bill.

c. Scott borrowed $3,500 from his parents last fall, but so far, he has made no payments to them. - This is an asset (cash) and a liability since he is yet to pay.

d. Scott makes monthly payments of $225 on an installment loan; about half of it is interest, and the balance is repayment of principal. He has 20 payments left, totaling $4,500 -  The interest element is an expense while the amount left is a liability

e. Scott paid $3,800 in taxes during the year and is due a tax refund of $650, which he hasn’t yet received. - The  amount paid in taxes is an expense while the amount to be received back is an asset

f. Scott invested $2,300 in some common stock  - This is an assets

5 0
3 years ago
On January 1, 2012, Gucci Brothers Inc. started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in
dsp73

Answer:

option (C) $1,201,300

Explanation:

Data provided in the question:

Balance in retained earnings = $492,000

Balance in Common Stock = $605,000

Net income earned = $92,000

Dividend paid = $15,200

Common stocks issued = $27,500

Now,

Common Stock

= Balance in Common Stock + Common stocks issued

= $605,000 + $27,500

= $632,500

Retained Earnings

= Balance in retained earnings + Net income earned - Dividend paid

= $492,000 + $92,000 - $15,200

= $568,800

Total Stock Holders Equity on Dec 31,2012

= Common Stock + Retained Earnings

= $632,500 + $568,800

= $1,201,300

Hence,

The answer is option (C) $1,201,300

4 0
3 years ago
Anytown households that earn more than $75,000 tend to buy sports equipment, while households that earn less than $75,000 tend t
Tema [17]

Answer:

an electronics store

Explanation:

This is so because there is more population that earns less than $75,000 and they are people that like to spend their money on buying electronics such as TVs. So a new business dedicated to selling electronics (TVs, computers, mobile phones, and so on) could have a great opportunity with this population. More people would be attracted to visit the shop location or buying online.

Hope this answer helps you :)

Have a great day

Mark brainliest

8 0
3 years ago
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