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lukranit [14]
3 years ago
9

Suppose 2-year treasury bonds yield 4.5%, while 1-year bonds yield 3%. r* is 1%, and the maturity risk premium is zero. using th

e expectations theory, what is the yield on a 1-year bond 1 year from now? calculate the yield using a geometric average.
Business
1 answer:
Gemiola [76]3 years ago
5 0
<span>The expectation theory assumes that the yield curve accurately reflects the expected value of interest rates. b. Inflation is 4.5%-3%=1.5%-1%=0.5% in year one. Year two would be 1.5%.</span>
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Maris Brothers Inc. needs a cash disbursement schedule for the months of April, May, and June following information in its prepa
Citrus2011 [14]

An swer:

June $975,286

April $1,118,052

May $1,076,856

Explanation:

Maris Brothers Inc.Schedule of Projected Cash Disbursements

April May June

Purchases (0.55 x sales)

April $542,000 ×0.55= $298,100

May $629,000×0.55=$345,950

June $657,000×0.55=$361,350

Cash purchases (.10)

April $542,000 ×0.10= $54,200

May $629,000×0.10=$62,900

June $657,000×0.10=$65,700

Payments of A/PLagged 1 month (0.45)

April $542,000 ×0.45= $243,900

May $629,000×0.45=$283,050

June $657,000×0.45=$295,650

Lagged 2 months(0.45)

April $542,000 ×0.45= $243,900

May $629,000×0.45=$283,050

June $657,000×0.45=$295,650

Rent payments

April $8,030

May $8,030

June $8,030

Wages and salaries

April $542,000 ×0.068+5,800= $42,656

May $629,000×0.068+5,800=$48,572

June $657,000×0.068+5,800=$50,476

Tax Payments

June $54,100

Fixed-asset outlays

April $74,000

Interest payments

June $30,400

Cash dividend payments

April $12,500

Total Cash Disbursements

June

($298,100 +$54,200+$243,900+$243,900+$8,030+$42,656+$54,100+$30,400)

=$975,286

April

($345,950+$62,900+$283,050+$283,050+$8,030+$48,572+$74,000+$12,500)

=$1,118,052

May

($361,350+$65,700+$295,650+$295,650+8,030+$50,476)

=$1,076,856

6 0
3 years ago
The quantity theory of money holds that:______.
N76 [4]

Answer and Explanation:

The quantity theory of money talks about money supply and price level, and their relationship with one another.

In any given economy, the quantity Theory of money states that money supply and price level are directly proportional. This is to say that when there is a change such as an increase in money supply, there would also be a proportional increase in price Ievel. Also when there is an increase in price level, there would also be a proportional increase in money supply.

4 0
3 years ago
If Project Repat were to acquire another firm that makes or sells similar products in similar markets, it would be an example of
SVEN [57.7K]

Answer:

b. Horizontal merger.

Explanation:

Project Repat is merging with a company that produces similar products to its own markets them in similar markets as well, this is an example of a horizontal merger that results in increased synergies between the similar firms and a greater market share opportunity.

Vertical mergers are usually not in the same industry. They would either be with the suppliers of Project Repat or customers who retail Project Repat's products.

Conglomerate is an example of diversification and usually the merging firms have different operations.

There are no information of clashes of any sort within the two  merging companies so it is uncertain whether this is a hostile takeover.

Hope that helps.

3 0
3 years ago
Which of the following statements about mentors is true?
lesya [120]

Mentors are an excellent way to learn on the job- this statement about mentors is true.

Option: A

Explanation:

Mentors are the one who guides his trainee from different perspectives and help in every possible way. Mentors provide real life a practical advice so that it become easy to deal with the problem for trainee. Every company do support mentoring program. After appointing many fresher company executive split them in number groups and assigned one expert per group according to the nature of work.

That field expert monitors his group which consists of 7-8 persons at a time. Expert assign work to the trainees for daily basis, supervise them, advice them and train them to be a perfect employee of that company.

5 0
3 years ago
Read 2 more answers
Classifying items on the statement of cash flows Cash flow items must be categorized into one of four categories. Identify each
valentina_108 [34]

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income  and it also records the cash receipts and cash payment transactions

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

a. Cash purchase of merchandise inventory - operating activity

b. Cash payment of dividend - financing activity

c. Cash receipt from the collection of long-term notes receivable - investing activity

d. Cash payment for income taxes - operating activity

e. Purchase of equipment in exchange for notes payable - non cash activity

f. Cash receipt from the sale of land - investing activity

g. Cash received from borrowing money  - financing activity

h. Cash receipt for interest income - operating activity

i. Cash receipt from the issuance of common stock - financing activity

j. Cash payment of salaries dividends - operating activity

5 0
3 years ago
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