Answer:
How much should she allocate to each investme?
420000 in Bonds and
280000 in Saving Account
Explanation:
x*0.03 = y*0.02
Assuming she has to invest everything
x+y = 700,000
x = 700,000-y
Plug that in to the above
(700000-y)*0.03 = y*0.02
21000 - 0.03y = 0.02y
21000 = 0.05y
y = 420000
x = 700,000-y
x = 700,000-420000= 280000
420000 in Bonds and
280000 in Saving Account
Income saving=280000*2%=5600
Utility bonds=420000*3%= 12600
High
unemployment especially unemployment as the result of layoffs, can be
devastating for individuals and business. All of the following are effects of high unemployment except for " a loose money supply policy<span> "</span>
>A high unemployment rate can impede a country from progressing in all aspects.
>Monetary policy is defined as the management of a nation's money supply by the government or central bank.It happens when the money supply is expanded and is easily accessible to citizens to encourage economic growth.
<span>
Read more: http://www.businessdictionary.com/definition/loose-monetary-policy.html#ixzz48jU6jgpo</span>
Answer:
$46,000
Explanation:
We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .
DATA
Fair value = 588,000
Cost = 542,000
Revaluation gain = Current fair value - Cost
Revaluation gain = 588,000 - 542,000
Revaluation gain = $46,000
The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.
Answer:
total weight of debt = 0.343 or 34.3%
Explanation:
stock's market value = 17,500 x $69 = $1,207,500
bond₁'s market value = $250,000 x 101.5% = $256,750
bond₂'s market value = $350,000 x 106.5% = $372,750
total market value of the firm = $1,837,000
weighted capital structure:
market value weight
stocks $1,207,500 0.657
bond₁ $256,750 0.140
bond₂ $372,750 0.203
total $1,837,000 1
total weight of debt = 0.343 or 34.3%
Answer:
The expected return on her portfolio is B) 11.8%
Explanation:
Hi, the expected return of a portfolio can be found by multiplying the weight of each of the assets times each of its expected return, that is:
So everything should look like this
The expected return of the portfolio is 11.8%, that is option B)
Best of luck.
