Answer:
Statements "A" is true.
Explanation:
During a financial recession and a cynical domain, the yield spread between government securities and corporate securities could be higher than during great monetary occasions. This is because the grounds that during a recession, corporate securities would convey more hazard, (for example, higher default chance) than during great monetary occasions. To make up for this extra hazard, financial specialists would request more returns.
Answer:
The lower- of- market- or cost for the item is $21
Explanation:
In the lower of cost or market, the market begins at the replacement cost which is $20, which is then limited or restricted to a ceiling and a floor.
The ceiling is computed as:
Ceiling = Selling price - Completion cost
where
selling price is $30
Completion cost is $2
Putting the values above:
Ceiling = $30 - $2
Ceiling = $28
Computing the floor as:
Floor = Ceiling - Normal profit margin
Floor = $28 - $7
Floor = $21
As the market cannot be lower than the floor which is $21. Therefore, the lower of cost which is $26 and the market which is $21. But have to take lower. So, it is $21.
Climate Change is the first trend that is expected to cause more natural disasters. This has been facilitated by global warming caused by increased green house gases. Food prices are expected to rise due to high temperatures that has affected corn and soybean. Floods and storms are now becoming unpredictable.
There is high control of oil, gas and food prices by financial markets. Commodities traders are now setting prices instead of supply and demand thus the value of dollar in under the control of foreign exchange traders.
Increasing rates of interest, where recently the Federal Reserve wants to increase the Fed fund rates to two percent point. Inflation will be at 2% and unemployment at 4% thus this will show <u>a no falling to recession situation</u> which will allow Fed to keep increasing rates.In the long run cost of loans will rise.
Other trends to notice are;the decline in global economic power of the U.S and the fact that the U.S economy is current in the expansion phase of the business cycle.
Answer:
See below
Explanation:
A budgetary fund is an income account and thus a debit balance suggests a deficit on the fund account. This means that governing bodies of City of Goodville have spent more money in their expenditures than they have brought in as income from the fund. This will be recorded as a liability in the balance sheet. Where as a credit balance would be a surplus and recorded as an asset.
Answer:
the issue price of the bonds is $593,177
Explanation:
The computation of the issue price of the bonds is shown below:
Particulars Amount PV factorat 5% Present value
Semi-annual interest $28,350 11.68959 $331,400
Principal $630,000 0.41552 $261,778
Total $593,177
hence, the issue price of the bonds is $593,177
