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4 years ago

What is a Financial market

Business

2 answers:

Eduardwww [97]4 years ago

8 0

A market in which people trade financial securities and derivatives at low transaction costs

erastovalidia [21]4 years ago

3 0

A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, and precious metals.

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Ray is a shareholder of Small Biz Company (SBC). When the directors fail to undertake an action to redress a wrong suffered by S

julsineya [31]

Ray is a shareholder of a small company. When the director falls to undertake an action it falls under derivative suit.

Explanation:

Derivative suit is referred to as a law suit that is brought by the shareholder in behalf of the company against the third party.
If in a company the employees, the directors as well as the officers are not ready to file a complain against the third party then the shareholder has the right to file a complaint against the third party.
Derivative suit is normally filed by the shareholder when there is a mismanagement in the company. To stop the illegal work this action is being taken.

4 0

3 years ago

The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward

Sliva [168]

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

Fundamental weighting is the index weighting which results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced.

3 0

3 years ago

Computing Income Taxes

Anastaziya [24]

Answer:

The corporation's tax liability is $ 228,820.

Explanation:

To calculate tax liability we first have to find net profit. Detail calculation is given below.

Net profit Calculation

Sales $ 3,130,000

cost of goods sold and the operating expenses ($ 2,080,000)

Interest expense ( $ 377,000)

Net profit $ 673,000

Tax liability Calculation

Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.

Tax liabilty = 673,000 * 34% = $ 228,820

5 0

3 years ago

Sheryls's business sells a single product. The following information was gathered from Sheryls's records: Price $97.00 per unit

VLD [36.1K]

Answer:

12,497 units

Explanation:

Break even unit = Fixed Cost ÷ Contribution per unit

= $400,000 ÷ $97.00 x 33%

= 12,497 units

Sheryls's business need to sell 12,497 units to break even

4 0

3 years ago

A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $ 102,900. Ignoring the effect

natta225 [31]

Answer:

Ignoring the effect of taxes, what is the degree of operating leverage?

1.81

If units sold rise from 9,100 to 9,500, what will be the increase in operating cash flow?

$8,171.43 or 7.94%

what is the new degree of operating leverage?

1.75

Explanation:

degree of operating leverage = (units sold x contribution margin) / [(units sold x contribution margin) - fixed costs]

(units sold x contribution margin) - fixed costs] = $102,900

units sold x contribution margin = $102,900 + $83,000 = $185,900

degree of operating leverage = $185,900 / $102,900 = 1.81

contribution margin = $185,900 / 9,100 = $20.4286

operating cash flow (at 9,500 units) = (9,500 x $20.4286) - $83,000 = $111,071.43

operating cash flow will increase by $8,171.43 or 7.94%

new degree of operating leverage = $194,071.43 / $111,071.43 = 1.75

8 0

3 years ago