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3 years ago

What is evolution of finance?

1 answer:

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Answer: The Evolution of Finance. ... At the core financial institutions all do the same two things: first, they gather assets, and second, they invest those assets. Commercial banks take deposits and make loans. Investment banks identify pools of capital and issue securities. Asset managers take savings and invest those savings.

Explanation:

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Refer to Exhibit 7.4, which shows short-run average cost curves. Average cost is lowest for a medium plant when output is _____

MatroZZZ [7]

Answer: c) between Qa and Qb

Explanation:

From the exhibit, the lowest cost will be recorded when output is between Qa and Qb because these points represent the lowest costs per unit for Curves A and C and the lowest points where output can be produced. Output being produced at costs lower than this is therefore the lowest for the medium plant.

3 0

3 years ago

Dane is a stockholder in smallworld, inc., a c corporation that manufactures amusement park rides. the company recently lost a m

Georgia [21]

Dane and the other stockholders will lose their investments but nothing else. Because Dane and others are stockholders in this company, they will lose the money that they had invested in the company and they will no longer receive any dividend from the company again because the company has gone bankrupt. Dane and others are not liable for other debts that had been acquired by the company.

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3 years ago

Universal Foods issued 10% bonds, dated January 1, with a face amount of $260 million on January 1, 2018. The bonds mature on De

kondaur [170]

Answer:

The bonds were issued at $220,879,628.13

This is lower than the face value to compensate for the lower coupon payment.

cash 220,879,628.13 debit

discount on BP 39,120,371.87 debit

bonds payable 260,000,000 credit

--to record the issuance of the bonds--

Interest expense 13,252,777.69 debit

Discoun on BP 252,777.69 credit

cash 13,000,000 credit

--to record the first interest payment--

Interest expense 13,267,944.35 debit

Discount on BP 267,944.35 credit

Cash 13,000,000 credit

--to record second interest payment--

Interest expense 13,539,156.67 debit

Discount on BP 539,156.67 credit

cash 13,000,000.00 credit

--to record Dec 31st, 2025 payment--

Explanation:

To determinate the price we will solve for the present value of the coupon payment and maturity at the market rate of %12

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment:

260,000,000 x 10% x 1/2 =13,000,000.000

time 20 years x 2 payment per year 40

yield to maturity 12% / 2 = 6%

$13000000 \times \frac{1-(1+0.06)^{-40} }{0.06} = PV\\$

PV $195,601,859.3298

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 260,000,000.00

time 40.00

rate 0.06

$\frac{260000000}{(1 + 0.06)^{40} } = PV$

PV 25,277,768.80

PV c $195,601,859.3298

PV m $25,277,768.8042

Total $220,879,628.1340

For the journal entries, we will multiply this current market price of the bonds by the market rate (YTM) the difference between this and the actual cash obligation generate by the bond is the amortization of the discount.

first interest payment

$220,879,628.13 x 6% = 13,252,777.69

less actual cash outlay: 13,000,000

amortization 252,777.69

second interest payment

($220,879,628.13- $252,777.69) x 6% = 13,267,944.35

less actual cash outlay: 13,000,000.00

amortization 267,944.35

December 31st, 2025:

This will be payment 14th

after building the schedule until that date we got:

8 0

3 years ago

The Consumer Electronics Show (CES) reports that the HP Spectre laptop computer starts at $994.00 for a base configuration. The

e-lub [12.9K]

Answer: $1312.41

Explanation:

The following information can be depicted from the question:

Cost of HP Spectre laptop = $1353

Credit terms = 3/15, net 30

Therefore, since discount allowed is 3%, the complement of the discount rate will be:

= 100% - 3%

= 97%

Therefore, amount needed to pay will be:

= Listed price × Complement of discounts rate

= $1353 × 97%

= $1353 × 0.97

= $1312.41

Therefore, the amount needed to pay is $1312.41

4 0

2 years ago

Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the

Dmitriy789 [7]

Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the output. in business, this is called the "value-added" approach.

There is a correct theory called marginal productivity theory. Wages are paid at a level equal to the marginal revenue product of labor, the MRP (value of the marginal product of labor). MRP is the increase in income caused by the increase in output produced by the last employed worker.

The marginal productivity theory of income distribution proposes that each individual should receive income based on their contribution to total output. The marginal productivity theory of income distribution has been criticized for the following reasons. Income from inheritance is inconsistent with the theory.

Learn more about Marginal revenue here: brainly.com/question/13617399

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7 0

2 years ago

What is evolution of finance?​

What is evolution of finance?