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3 years ago

If the Federal Reserve were to change from an expansionary to a contractionary monetary

Business

1 answer:

zzz [600]3 years ago

6 0

Answer:

B) systematic risk

Explanation:

Federal Reserve changes in monetary policies affect the entire securities market hence considered a Systematic risk. It is also known as the Non-diversifiable risk ; it cannot be diversified away unlike stock specific or industry specific risk(unsystematic ) which can be eliminated through diversification.

Systematic risk is unavoidable and may be difficult to predict. Other examples include increase in long term interest rates, recessions or wars. Additionally, Investors are only compensated for systematic risk and not for diversifiable risk.

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Assume that atlanta co. is producing motorcycles and selling them to u.s. customers. atlanta co. obtains all of its supplies fro

Sedaia [141]

The answers that fit the blanks provided are ECONOMIC and TRANSACTION, respectively. Based on the given scenario above regarding Atlanta company, and Phoenix company, we can say that Atlanta company is more exposed on the economic perspective, and Phoenix company is more exposed on the transaction perspective.

7 0

3 years ago

The free-rider problem; A. Arise from the ability to exclude an individual from the benefits of someone else's purchase B. Is a

ololo11 [35]

Answer: C. Reflects the inability to exclude an Individual from the benefits of someone else's purchase.

Explanation:

The Free-rider problem is a concept in economics that describes the fact that sometimes people benefit from goods and services that they wither did not pay for or underpaid for.

There has been a failure to exclude those individuals who are free-riding from the benefits of goods and services that other people are paying for. A simple example of the free-rider phenomenon is using Wikipedia. Most of those who use it do not contribute or pay for its upkeep in any way yet reap the benefits of its extensive information.

8 0

3 years ago

Easy Car Corp. is a grocery store located in the Southwest. It expects to pay an annual dividend of $6.30 next year to its share

emmainna [20.7K]

Answer:

Missing question <em>"1. What is the cost of debt for Easy Corp? 2. How many interest payments are left for the bond of Easy Corp? 3. What is the interest payment per period for the bond? 4. What is the discount rate per period to use in pricing the bonds? 5. What is the market value of equity for Easy? 6. What is the cost of equity for Easy?"</em>

<em />

1. Cost of debt is equal to YTM, which is equal to 10%

Cost of debt = YTM = 10%

2. Number of interest payment to be made is equal to 26 * 2 = 52

This is because payment is made semi annually

3. Interest payment per period = 8.9141% / 2 * $1,000

Interest payment per period = 4.45705% * $1,000

Interest payment per period = $44.57

4. As the period is semiannual, discount rate per period is equal to 10% / 2 = 5%

5. Market value of equity = 600,000*60 = $36,000,000

6. Cost of equity = Dividend price + Growth rate

Cost of equity = 6.3/60 + 0.05

Cost of equity = 0.105 + 0.05

Cost of equity = 0.155

Cost of equity = 15.5%

7 0

3 years ago

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. Wha

allochka39001 [22]

Answer:

The answer is: $18, 750

Explanation:

The double-declining-balance(DDB) method entails computing depreciation of an asset at an accelerated rate. This method is employed when the asset loses value quickly and is expected to generate more revenue at the earlier stages of its useful life. The depreciation is higher at the beginning and lower close to the end of the asset's useful life. The depreciation is computed as follows:

Depreciation = 2 * straight line depreciation percentage * Book value at the beginning of the period

Machine cost: $75, 000

Residual Value: $5, 000

Estimated Life: 4 years/18, 000 hours

Straight line depreciation percentage : 100/4 = 25%

Depreciation Year 1 on DDB = 2 * 25% * $75, 000

= $37, 500

Depreciation Year 2 on DDB = 2 * 25% * ($75, 000 -$37, 500)

= $18, 750

4 0

3 years ago

Scenario D: Theo, Diana, and Teddy, who work for different organizations, are comparing the diversity makeup of their respective

Marrrta [24]

Answer:

"B"

Explanation:

Monolithic organization is an organization that forcefully incorporate all employees into a particular culture being practiced. It can be a very large organization but lack flexibility and its rate of reaction to changes can be very slow.

Its operational system are complicated as resources can be scarce. It believes it can influence employees' motivation, customers, the market and any other complex system.

This description fits into the situation at Teddy's place of work

3 0

3 years ago