Answer:
their total wealth
-their future expenditure needs
-the risk on the security
Explanation:
Financial System
This simply are markets and various financial units or intermediaries that help transfer financial assets, real assets, and financial risks in various forms from one person to another, from one place to another, and from one point to another
3 Main functions of the Financial System
1.) The achievement of the purposes for which people use the financial system
2.) The discovery of the rates of return that equate aggregate savings with aggregate borrowings
3.) The allocation of capital to the best uses
An investment
This is simply defined as the current commitment of current resources in the hope of getting greater resources in the future. It reduces current consumption in hopes of greater future consumptions. When making investment, different actions are considered before decision making.
Answer:
5.31%
Explanation:
FV = 1000
Coupon rate = 5.7%
No of compound = 2
Interest per period = $28.5
Bond price = $1048
No of years to maturity = 20
No of compounding till maturity = 40
Coupon rate set on new bonds = Rate(Nper, PMT, -PV, FV) * 2
Coupon rate set on new bonds = Rate(40, 28.5, -1048, 1000) * 2
Coupon rate set on new bonds = 0.02655 * 2
Coupon rate set on new bonds = 0.0531
Coupon rate set on new bonds = 5.31%
Answer:
It's best to invest in the second economy
Explanation:
The question does not provide information on the hypothetical economic expectations of the two economies, but as a risk-averse investor, it's a better idea to try to "spread" the risk instead of concentrating it.
In the first economy, conditions might or might not be good. If they are good, returns will be extraordinary because all stocks will provide good returns, but if conditions take a turn for the worse, all stocks prices will fall and the financial consequences will be catastrophic.
In the second economy, results might never be as good as in the first economy, but they also will not ever be as bad. The risk is spread between various stocks, and while some may fall in price, others will rise, and viceversa. For a risk-adverse investor, this a far better option.
D) By reducing expenses you increase margins which means there is more money available for stockholders
Answer:
Case 1 = $9,420
Case 2 = 0
Explanation:
Determining the amount of impairment loss is given below:-
Case 1
Impairment loss = Amortized cost - Fair value
= $41,640 - $32,220
= $9,420
Case 2
Impairment loss = Amortized cost - Fair value
= 91,800 - $102,220
= 0
Since, the fair value is higher than Amortized cost so the value of Impairment loss in case 2 is 0.
