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alukav5142 [94]
3 years ago
11

The Carter National Bank is worried because it knows that the municipal bonds it has in its bond portfolio can be difficult to s

ell quickly. What type of risk would this be an example of?
A) Basis risk.
B) Call risk.
C) Default risk.
D) Inflation risk.
Business
1 answer:
ioda3 years ago
4 0

Answer:

liquidity risk

Explanation:

Liquidity risk refers to the risk associated with not being able to fulfill short term debts and obligations. Liquid assets are those assets that can be easily converted to cash, e.g. T-bills, publicly traded stocks.

Illiquid assets are those that cannot be easily converted to cash, e.g. real estate property. It doesn't mean that they are a bad investment, but if the company needs cash fast, they need to look somewhere else.

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Keenan has won the lottery for $10,000,000. He is offered a cash payment now of $7,500,000, or 10 annual payments of $1,000,000.
Katarina [22]

Answer:

a) 5,6%

b)$16 191 937.48

Explanation:

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A seven-year-old boy breaks his tibia and requires immobilization by a hard cast for six weeks until the break heals. A potentia
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The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50
Lelu [443]

Answer:

Times interest earned (TIE) = 7.4 times

Explanation:

The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,

Times Interest Earned (TIE)  =  EBIT / Total Interest expense

Where,

  • EBIT is the earnings of the company before interest and tax

To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:

EBIT = Net income + tax + interest expense

EBIT = 240000 + 80000 + 50000

EBIT = $370000

Times interest earned (TIE) = 370000 / 50000

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6 0
3 years ago
The component of the service environment that involves products or services provided by an organization is/are called _______.a.
Marat540 [252]

Option A

The component of the service environment that involves products or services provided by an organization is/are called The delivery system

<u>Explanation:</u>

A system or scheme for rendering a good or aid to the society is termed as a delivery system. The essential factors for strong service delivery systems are defined which must be followed by every industry to meet their delivery system.

Producing the service delivery system should concentrate on what produces superiority to the central organizations and how to involve front-line workers to deliver the latest client action. The plan is power and continually assessing how both client and end-user observe service delivery is essential for constant collaboration.

7 0
3 years ago
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (
Vladimir [108]

Answer:

Flashfone and Pictech

The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.  

Explanation:

a) Data and Calculations:

                                Pictech  

                          High         Low

             High     8   8        3  10

Flashfone

             Low    10   3        5   5

b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively.  This payoff level does not put any of the two firms at a disadvantage.

7 0
2 years ago
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