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Alik [6]
3 years ago
5

Mr. Smith, your client, has maintained about 80% of his portfolio in fixed income securities. Interest rates are expected to dec

line over the next 12 month period. Mr. Smith calls you because he is concerned about this prediction and his portfolio. Which of the following recommendations would be appropriate for you to give to Mr. Smith?
[A] Move 50% of his portfolio into equity securities
[B] Leave his portfolio the way it is now
[C] Move 60% of his portfolio into Money Market funds
[D] Move 25% of his portfolio into Limited Partnerships
Business
1 answer:
alukav5142 [94]3 years ago
6 0

Answer:

(B) Leave his portfolio the way it is now

Explanation:

Bond value and market interest rates are inversely related. When the market interest rates are expected to decline and an investor already holds a bond with fixed rate of interest, the value of such bonds shall rise.

Market interest rates refer to the rate of interest other firms are offering on similarly priced bonds. Thus market interest rate also implies investor expectations i.e YTM (yield to maturity) which is used as a discounting factor to ascertain the price of a bond.

Lesser the discounting rate (yield to maturity), higher shall be the value of a bond.

Thus, it is recommended for Mr Smith to (B) leave his portfolio the way it is now.

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According to the acquisition method of accounting for business combinations, costs paid to attorneys and accountants for service
oee [108]

Answer:

"charged to profit or loss"

Explanation:

According to the acquisition method, acquisition-related (transaction) costs are costs the acquirer incurs to effect a business combination. For example, the cost of the advisory, legal, accounting, valuation or consultancy fees, must not be included in the cost of the acquisition. These costs must be treated as an expense as incurred and written off to profit or loss.

The amount of transaction costs associated with an acquisition and written off during the period to profit or loss must be disclosed in a note to the financial statements.

So based on the above discussion the answer to the question shall be "charged to profit or loss"

5 0
4 years ago
Ibarra Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department,
Morgarella [4.7K]

Answer:

Conversion Costs per unit  = $ $599,123/ 110080= $ 5.442

Explanation:

Conversion costs of $ $599,123

                                    Units            % of Completion                EUP

                                                            D.M       C.C                D.M       C.C

Units completed      106,000          100        100          106,000      106,000

<u>Ending Inventory       13,600          100          30            13,600        4080</u>

T<u>otal Equivalent  Units Of Production                          119600    110,080</u>

<u />

Conversion Costs per unit  = $ $599,123/ 110080= $ 5.442

Another way of finding out is through using the beginning inventory and the units started but as we do not have the % of completion for started units it cannot be computed.

                                   

7 0
3 years ago
It's time for another financial calculator problem. A UCF student (who has not taken FIN 2100) decides that he really needs a la
Alchen [17]

Answer:

The answer is: E) None of the above

Explanation:

Using an excel spreadsheet and the RATE function, we can calculate the monthly interest rate of renting the TV:

=RATE(36,-60,1000)

= 4.94% monthly interest rate

Then we multiply the monthly interest rate by twelve to get the APR:

APR = 4.94% x 12 = 59.3%

5 0
3 years ago
What are the opportunity offers by<br>vocational education?​
SVEN [57.7K]

Answer:

Where I grew up, I went to a vocational school for just the beginning of the year, then left to a charter school, At a vocational school, I can choose a cooking class, welding, mechanic, and some other neat stuff, it's kinda of preparing you to be independent, but also you can do it working with other people too.

They are strict with absences and tardies, 3 tardies make one absence, and absences put penalties on your highschool resume/record, depending on how many penalties from absences and tardies you get, they kick you out of the school which is not fair if you have construction workers on the road  slowing you down on your way to school for 3 months.

If you do a vocational school, collages you want to go to are more likely to take you in faster than a person who went to a regular high school.

8 0
3 years ago
What time do tax refunds get deposited into bank account 2022.
Novosadov [1.4K]

Answer:

10 days

Explanation: hope this helps I thank this is it

7 0
3 years ago
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