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2 years ago

Consider a Treasury bill with a rate of return of 5% and the following risky securities: Security

Business

1 answer:

MrMuchimi2 years ago

7 0

Answer:

b. security C

Explanation:

Risk averse investors are investors that are not risk takers or are risk averse and so from the above, such investors will go for a less variable portfolio which has less risk. The security with the least risk from the options is option B. This is the security that the risk averse investor will choose to add to the portfolio with the risk free t bill

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Coronado's Place recorded the following data:

Lorico [155]

Answer:

The weighted average unit cost of the inventory at January 31 is $496

Explanation:

Weighted Average unit cost the average cost of units on hand on each day. It is calculated by dividing total inventory value by total available units.

Date Unit Received / Sold On Hand Unit Cost Balance

1/1 Inventory 540 units at $2.80 540 $1,512 $1,512

1/8 Purchased 960 units at $2.3 1500 $2208 $3,720

1/12 Sold 1,300 at ($3,720/1500) 200 $3,224 $496

4 0

2 years ago

Explain corporate bond interest in terms of cost of capital versus investor yields. also, explain the municipal bond interest in

astraxan [27]

A sort of financial product sold to investors is a corporate bond, which is issued by a business. The investor receives a predetermined amount of interest payments at either a fixed or variable interest rate in exchange for providing the firm with the money it requires.

The bond "reaches maturity" when it stops making payments and the initial investment is refunded.

The ability of the corporation to repay the bond often serves as its security, and this ability is based on its expectations for future revenues and profitability. Physical assets of the corporation may occasionally be utilized as collateral.

A state, municipality, or county may issue municipal bonds as a debt security to pay for capital projects like building roads, bridges, or schools. They can be compared to loans given to local governments by investors.

Municipal bonds are particularly appealing to those in higher income tax brackets because they are frequently exempt from federal taxes and the majority of state and local taxes (for residents).

To learn more about Corporate Bond and Municipal Bonds here

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7 0

1 year ago

Roper Electronics received its bank statement for the month of August with an ending balance of $11,740. Roper determined that c

lesya [120]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

Download xlsx

6 0

2 years ago

Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the res

vladimir1956 [14]

Answer:

a) 12.23%

b) 12.94%

c) 14th month payment interest = $157.33

14th month principal = $369.50

d) 18th month payment interest = $142.04

18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

22nd month payment interest = $400.71

Explanation:

price of truck = $15000

down payment = $1000

Loan amount = $14,000

assume monthly interest rate = r%

Loan amount after 1 year will be = 14000 * (1+r%)12

next we will determine the annuity factor = [ (1/r)-[(1/r)*(1/ (1+r)t)] ]

r = periodic interest rate , t = number of payments

monthly loan payment = $14000*(1+r%)12 / [ (1/r)-[(1/r)*(1/ (1+r)36)] ]

hence r = 1.019%

a) nominal interest rate

= 1.019% *12 = 12.23%

b) effective interest rate

= (1+1.019%)^12 -1 = 12.94%

attached below is the Amortization schedule

c) 14th month payment interest = $157.33

14th month principal = $369.50

d) 18th month payment interest = $142.04

18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

22nd month payment interest = $400.71

3 0

2 years ago

Farmers Pantry Products Inc. and Market Grocers LLC dispute a term in their contract. If Farmers Pantry and Market Grocers have

e-lub [12.9K]

Answer: The process is not adversarial

Explanation:

Mediation' refers to the voluntary process that is used for resolving disputes whereby there's a neutral third party whom helps in facilitating dialogue between the conflicting parties and then helps them in identifying the issue and tech a settlement.

Based on the question, since both parties have a long-standing business relationship that they would like to continue, then they may prefer to settle their dispute through mediation because the process is not adversarial. An adversarial system typically involves going to the court.

7 0

3 years ago