What types of risks does this liability structure entail for commercial banks?

A rational person does not act unless a. the action makes money for the person. b. the action is ethical. c. the action produces

Natali [406]

Answer:

d. the action produces marginal benefits that exceed marginal costs.

Explanation:

The rational person is the person who takes the decision with keeping in mind about its future events and in practicable in nature instead of the emotional nature

When a company earns a net income, its revenue is more than its cost

So a rational person does not act unless when the action generates the marginal benefits that are exceeded from the marginal cost.

3 0

3 years ago

Laurel contributed equipment worth $200,000, purchased 10 months ago for $250,000 cash and used in her sole proprietorship, to S

Gnoma [55]

Answer: See explanation

Explanation:

a. What is Laurel’s initial tax basis in her LLC interest?

This will be the addition of the $250,000 basis for the equipment, accounts payable of $15,000 and also the $15,000 (15% × $100,000). This will be:

= $250,000 + $15,000 + $15,000

= $280,000

b. True.

Laurel’s holding period in the partnership interest begins the day the LLC interest is acquired. This is due to the fact that the asset contributed isn't a section 1232 asset. The reason for this is due to the fact that the asset was used for a year or less.

c. Sand Creek’s initial basis in the contributed property is $250,000.

d. Ten months.

Sand Creek’s holding period in the contributed property will be 10 months.

5 0

3 years ago

Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on

dimaraw [331]

Answer and Explanation:

The computation is shown below:

As we know that

Monthly payment of a loan is given by

P = L [r(1 + r)^n] ÷ [(1 + r)^n - 1]

where,

P = Monthly payment = ?

r = Interst rate = 0.1 ÷ 12 = 0.00833

n = Term = 15 × 12 = 180

L = Loan amount = 900000

Now

P = $900,000 [0.00833(1 + 0.00833)^180] ÷ [(1 + 0.00833)^180 - 1]

= $9671.4461

Now

The Monthly payment for 30-year loan

P = $900,000[0.00833(1 + 0.00833)^360] ÷ [(1 + 0.00833)^360 - 1]

= $7898.1441

So,

Difference is

= $9671.4461 - $7,898.1441

= $1,773.3019

b.

Now

Total payment for 30-year loan is

= $7,898.1441 × 180

= $2,843,331.8871

And,

Total payment for 15-year loan is

= $9,671.4461 × 360

= $1,740,860.2907

So,

Difference is

= $2,843,331.8871 - $1,740,860.2907

= $1,102,471.60

i.e. option c

7 0

4 years ago

Kevin Oh is planning to sell a bond that he owns. This bond has four years to maturity and pays a coupon of 10 percent on a semi

ser-zykov [4K]

Answer:

The price of the Bond is $937.9

Explanation:

Price of bond is the present value of future cash flows, The coupon payment and the face value are discounted separately and added together to make the price of the bond. To calculate Price of the bond use following formula

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

As the payments are made on semiannual basis so, all the calculation will be made accordingly

Assuming Face value of the bond is $1,000.

Coupon payment = 1000 x 10% = $100 annually = $50 semiannually

Number of periods = n = 4 years x 2 = 8 periods

Yield to maturity = 12% annually = 6% semiannually

Price of the Bond =$50 x [ ( 1 - ( 1 + 6% )^-8 ) / 6% ] + [ $1,000 / ( 1 + 6% )^8 ]

Price of the Bond = $50 x [ ( 1 - ( 1.06 )^-8 ) / 0.06 ] + [ $1,000 / ( 1.06 )^8 ]

Price of the Bond = $310.49 + $627.41

Price of the Bond = $937.9

7 0

3 years ago

A client with renal colic is scheduled for extracorporeal shock-wave lithotripsy. The night before the procedure, the client put

lesantik [10]

Answer:

Explanation:

The appropriate statement the nurse should make to the client: " You will be going through a process tomorrow; tell me what concerns you have."

8 0

3 years ago