All categories

3 years ago

The principal differences between capital markets and money markets are that:__________.

Business

1 answer:

kolbaska11 [484]3 years ago

6 0

Answer:

B. capital markets deal in long-term debt and equity securities, while money markets deal only in short-term debt.

Explanation:

Most Company uses money market to raise short term funds and capital markets for long term funds. Money market is a market for short term borrowings. Usually the securities are held for less than or up to a year. And capital market on the contrary is where securities are held for a long term i.e more than a year. Money market is concerned with liquid fund requirement and capital market is for long term capital fund requirement.

You might be interested in

Sensitivity analysis determines the: Multiple Choice net present value range that can be realized from a proposed project. degre

BaLLatris [955]

Answer:

It determines the degree to which the net present value reacts to changes in a single variable

Explanation:

Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.

It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.

3 0

3 years ago

You are considering two home security companies for your new house. The first company offers free installation and equipment, bu

Vesnalui [34]

Answer:

The second option is the cheapest.

Explanation:

Giving the following information:

The first company offers free installation and equipment, but will charge you $401.00 per year forever. The second company charges $783.00 for installation, but will charge you $204.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 5.00% per year

To calculate the present value, we need to use the formula for a perpetual annuity:

PV= Cf/i

Cf= cash flow

i= interest rate

Option 1:

PV= 401/0.05= $8,020

Option 2:

PV= 204/0.05 + 783/1.05= $4,825.71

The second option is the cheapest.

5 0

3 years ago

I have a business. I have 20 workers and 100 dollars!!! How do I split it??????

Andreyy89

You have 20 workers and $100.00

100.00/20workers = $5.00/ worker.

Just hand each one $5.00 and say Thanks Good Job!

Check: $5.00 x 20 = $ 100.00

8 0

3 years ago

The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives eac

icang [17]

Answer:

Thailand

Ireland

Explanation:

Thailand has the highest annual growth rate so it is fastest economy to grow in rela income per person form 1960 to 2010 that is 4.91%

Irleand has the highest real income per person in year 2010 that is $41,558

Ireland, Pakistan and Thailand had lower real income per person than Finland in 1960 but only Ireland had higher real income per person than Finland in 2010.

8 0

4 years ago

Teagan Company uses Departmental Overhead allocation to allocate its manufacturing overhead costs. It has identified two depart

Sunny_sXe [5.5K]

Answer:

Machining:

Allocated MOH= $603

Assembly:

Allocated MOH= $450

Explanation:

Giving the following information:

Machining:

Allocates overhead using machine-hours

Estimated manufacturing overhead: $670,000

Estimated machine-hours= 10,000

Assembly:

Allocates overhead using direct labor hours.

Estimated manufacturing overhead: $450,000

Estimated direct labor hours= 15,000 hours

First, we need to calculate the estimated manufacturing overhead rate for each department:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machining:

Estimated manufacturing overhead rate= 670,000/10,000= $67 per machine hour

Assembly:

Estimated manufacturing overhead rate= 450,000/15,000= $30 per direct labor hour.

Job 601:

Machining Department: 9 Machine Hours

Assembly Department: 15 DL hours

To allocate overhead we use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Machining:

Allocated MOH= 67*9= $603

Assembly:

Allocated MOH= 30*15= $450

5 0

3 years ago