Prebankruptcy counseling includes all of the following except:

Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments

d1i1m1o1n [39]

Answer:

C. Banks make private loans; their conclusions on who is creditworthy are not made public.

Explanation:

Investors in financial instruments who engage in information collection face a free-rider problem, which means other investors may be able to benefit from their information without paying for it.

Individual investors, therefore, have inadequate incentives to devote resources to gather information about borrowers who issue securities.

4 0

3 years ago

Stock A has the following returns for various states of the economy:

Nadusha1986 [10]

Answer:

The correct answer is b.12.7%

Explanation:

Expected return: It is used to calculate the expected value of the formula

In this question, the formula should be used which is shown below:

Expected return = Return of portfolio × Probability of portfolio

So,

For Recession, the expected return would be equal to

= -72 × 9% = -6.48%

For below average, the expected return would be equal to

= -15 × 16% = -2.4%

For average, the expected return would be equal to

= 16 × 51% = 8.16%

For above average, the expected return would be equal to

= 35 × 14% = 4.9%

For boom, the expected return would be equal to

= 85 × 10% = 8.5%

Now, do the sum of all states of the economy, so that the solution can arrive.

So, the answer would be

= -6.48% + (-2.4%) +8.16% +4.9% + 8.5%

= 12.68% round off = 12.7%

Thus, the Stock A's expected return is 12.7%

And, the correct answer is b.12.7%

6 0

3 years ago

Haskins Products sells 2,000 kayaks per year at a sales price of $470 per unit. Haskins sells in a highly competitive market and

AysviL [449]

Answer:

target fixed costs is $ 420000

Explanation:

Given data

sells 2,000

sales price of $470 per unit.

product cost at $720,000

variable costs are $300,000

to find out

target fixed costs

solution

we know here product cost and variable cost

so target fixed costs is product cost - variable costs

so we put all these value to find out target fixed cost

target fixed costs = product cost - variable costs

target fixed costs = 720000 - 300000

target fixed costs is $ 420000

4 0

2 years ago

A higher earnings per share (eps) does not necessarily translate into a higher stock price

nikdorinn [45]

This doesn't seem to be a question, but rather, a statement.

4 0

3 years ago

John has an extra bedroom in his house that he occasionally rents out using the service Airbnb. John charges $100 per night, a

DanielleElmas [232]

Answer:

C. $2304

Explanation:

The annual, after-tax, revenue is:

$100 × 100 nights = 10000.

The tax rate is 28% of 10000 : 0.28 of 10000

Therefore 0.28 × 10000 = 2800.

Revenue = 10000 - 2800 =7200

The annual, after-tax, incremental revenue is:

$110 ×120 nights = 13200.

The tax rate is 28% of 13200 : 0.28 of 13200

Therefore 0.28 × 13200 = 3696

Incremental revenue = 13200 - 3696 = 9504

Then, the subtract the initial revenue from the new revenue.

9504 - 7200 = 2304

Therefore, the annual, after-tax, incremental revenue that John expects from his painting project is $2304

6 0

3 years ago