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2 years ago

How did speculative investing weaken the stability of the stock market?

1 answer:

7 0

<span>Heavy speculation is a bad idea in any market since it has a tendency to inflate prices to unrealistic levels. That is basically what many investors prior to the Great Depression did when they thought the market would keep going higher and higher. They borrowed money, sold their houses, etc.. to buy into the stock market thanks to that kind of speculation without even considering the underlying reasons for why the market is there in the first place.</span>

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Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM

frutty [35]

Answer:

The bond will sell at $4831.43

Explanation:

Given C = 0, FV = $1000, YTM= 5.31%, n =30 years

BV= ?

BV for a zero coupon bond is = F / (1+r)^-n*t

So we are told there is semi annual compounding

have to calculate

n = 30*2 = 60 periods

r = 5.31/2 = 2.66%

BV = 1000/(1+0.0266)^-60

=$4831.43

4 0

3 years ago

An increase in price causes an increase in total revenue when demand is

nadezda [96]

Answer:

elasticity of demand will be inelastic

Explanation:

Here in the question it is provided in the statement that with an increase in price there is an increase in total revenue

Therefore,

change in price and change in revenue will be positive

Mathematically,

$\frac{dR}{dP}$ > 0

Now,

When,

$\frac{dR}{dP}$ > 0

then,

the elasticity of demand will be Ed will be < 1

which means the elasticity of demand will be inelastic

7 0

2 years ago

Martha and Lew are married taxpayers with $400 of foreign tax withholding from dividends in a mutual fund. They have enough fore

DedPeter [7]

Answer: they should claim a deduction for foreign taxes on their Schedule A?

Explanation: An itemized deduction is an expenditure on eligible products, services, or contributions that can be subtracted from adjusted gross income (AGI) to reduce your tax bill.

Most taxpayers have the option to either itemize deductions or claim the standard deduction that applies to their filing status.

5 0

3 years ago

Exercise 11-2 Blossom Company had these transactions during the current period. June 12 Issued 78,000 shares of $1 par value com

Mekhanik [1.2K]

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $292,500

To Common Stock $78,000 (78,000 × $1)

To Additional Paid-in Capital in excess of par - Common Stock $214,500

(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)

2. Cash A/c Dr $260,000 (2,500 shares × $104)

To Preferred stock $250,000 (2,500 shares × $100)

To Additional Paid-in Capital in excess of par - Preferred Stock $10,000

(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)

3. Treasury stock A/c Dr $7,100

To Cash A/c $7,100

(Being the treasury stock is purchased for cash)

5 0

3 years ago

Question:

gladu [14]

I think the answer is C but idk if I’m right or not

5 0

3 years ago