1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stich3 [128]
4 years ago
7

Jim wants to start investing in bonds. He checks with two brokers to ask them for suggestions of bonds to buy. Broker J, who cha

rges a commission of 3.6% of the market value of all bonds sold, recommends for Jim to buy three par value $500 bonds from the city of Danville, a par value $1,000 bond from Raxin Accounting, and two par value $1,000 bonds from United Rotators. Danville bonds are selling at 114.212, Raxin Accounting bonds are selling at 79.941, and United Rotators bonds are selling at 102.844. Broker K, who charges a fee of $28 for each bond sold, recommends that Jim buy five par value $500 bonds from Fort Bend County, a par value $1,000 bond from the U.S. Treasury, and two par value $500 bonds from Iwad Records. Fort Bend bonds are selling at 91.090, Treasury bonds are selling at 101.163, and Iwad Records bonds are selling at 107.252. Based on the current information, which broker’s bond package will cost Jim less money up front, and how much less will it cost him? a. Broker J’s suggestion will cost Jim $59.57 less than Broker K’s suggestion. b. Broker J’s suggestion will cost Jim $62.00 less than Broker K’s suggestion. c. Broker K’s suggestion will cost Jim $148.57 less than Broker J’s suggestion. d. Broker K’s suggestion will cost Jim $208.07 less than Broker J’s suggestion. Please select the best answer from the choices provided A B C D
Business
2 answers:
svetoff [14.1K]4 years ago
7 0

Answer: C

Explanation:

Broker K's suggestion will cost Jim $148.57 less than Broker J's suggestion

Feliz [49]4 years ago
6 0

Answer:

C) Broker K’s suggestion will cost Jim $148.57 less than Broker J’s suggestion.

Explanation:

Broker J: 3.6% commission plus

  • 3 par value bonds $500 x 114.212% = $1,713.18
  • 1 par value bond $1,000 x 79.941% = $799.41
  • 2 par value bonds $1,000 x 102.844% = $2,056.88

Jim total investment = ($1,713.18 + $799.41 + $2,056.88) x 1.036 = $4,733.97

Broker K: $28 per bond plus

  • 5 par value bonds $500 x 91.090% = $2,277.25
  • 1 par value bond $1,000 x 101.163% = $1,011.63
  • 2 par value bonds $500 x 107.252% = $1,072.52

Jim total investment = $2,277.25 + $1,011.63 + $1,072.52 + (8 x $28) = $4,585.40

Broker J's offer - broker K's offer = $4,733.97 - $4,585.40 = $148.57

You might be interested in
One strategy for managers to increase capacity by creating flexibility involves the?
spayn [35]

Answer:

of labor

Explanation:

situations where people are coerced to work for little or no remuneration, often under threat of punishment

3 0
2 years ago
Sales revenue $440,000 Advertising expense 60,000 Interest expense 10,000 Salaries expense 55,000 Utilities expense 25,000 Incom
Sever21 [200]

Answer:

Lake's operating income is $120000

Explanation:

Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.

The formula for operating income = Sales - Cost of Sales - operating expenses.

The operating expenses here, are = Advertising + Salaries + Utilities

Thus, operating expenses = 60000 + 55000 + 25000 = $140000

The Operating Income = 440000 - 180000 - 140000 = $120000

8 0
3 years ago
Which of the following is NOT a reason to consider a decline in the fairvalue of a debt investment to be "other than temporary"?
hjlf
The investor determines that a credit loss exists on the investment
4 0
3 years ago
You and other college students are deciding whether to major in music or engineering. You learn that there is a shortage of engi
zloy xaker [14]

The correct answer would be option D, Markets tend to move towards equilibrium as individuals respond to incentives.

As a result, you and many other college students decide to major in engineering. This illustrates the principle of Equilibrium as individuals respond to incentives.

Explanation:

When supply and demand in an economy balances in the market keeping all other factors constant, then this situation is called as Market Equilibrium. With the change in these factors of the economy, the market equilibrium also changes, and there might be no equilibrium depending upon them at some point of time.

So when students see that there is a demand of engineering in the economy and music graduates are having difficulty in getting jobs due to more supply of music graduates, students move towards the engineering field in order to achieve the market equilibrium as they want to get jobs as an incentive.

Learn more about Market Equilibrium at:

brainly.com/question/91783

#LearnWithBrainly

3 0
4 years ago
Suppose that real GDP grew more in Country A than in Country B last year.
babunello [35]
D is the ắner hope this helps
3 0
4 years ago
Other questions:
  • The selling and administrative expense budget of Gullette Corporation is based on the number of units sold, which are budgeted t
    8·1 answer
  • Economies of scale exist when the_____ Group of answer choices total cost of production falls as the output increases. cost of p
    15·1 answer
  • In our lecture about Strategic fit, we learned that a company's competitive strategy defines the set of customer needs that it s
    5·1 answer
  • An employee who is entitled to a fair hearing in the case of a dismissal from a job is an example of
    7·1 answer
  • Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $961,000. Without new projects, bot
    13·1 answer
  • Consider the following information:
    11·1 answer
  • Differentiate inland water transportation and sea transportation
    11·1 answer
  • Ship Co. produces storage crates that require 33.0 meters of material at $0.10 per meter and 0.25 direct labor hours at $13.00 p
    11·1 answer
  • A company uses process costing to assign product costs. Available inventory information for a period is as follows: Inventory (i
    8·1 answer
  • cpas provide assurance on the information for a third party in all of the following situations except
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!