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3 years ago

Secured debt means a lender gives you money in exchange for what?

1 answer:

Pie3 years ago

8 0

Secured debt means a lender gives you money in exchange for collateral. Collateral is what is given to someone to secure the repayment of a loan if for some reason the loan can not be repaid. For instance, you give someone your lawn mower and borrow $400, in the agreement it states that the lawn mower was given as collateral, in the event the $400 does not get paid back. If the money is paid back, the lawn mower is given back. If not, the lawn mower is kept.

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Emerald Co. uses a perpetual inventory system and records purchases of merchandise at net cost. The company recently purchased 2

Aneli [31]

Answer:

Dr accounts payable $2,300

Cr cash $2300

Explanation:

Initially the cost of the purchases=$4600

Returning half of the disc means the left for the discs actually bought is half of the invoice price of $4600 i.e $2,300

By not paying within the discount period implies that the debt stands at $2,300

Without mincing words,payment of $2,300 to the supplier automatically translates to debiting account payable with $2,300 and crediting cash account with the same amount.

The correct answer would :

Dr accounts payable $2,300

Cr cash $2300

This is missing from the options provided.

3 0

3 years ago

Arbor Systems and Gencore stocks both have a volatility of 33%. Compute the volatility of a portfolio with 50% invested in each

fiasKO [112]

Answer:

<h3>In case of b, c, d ,e volatility is less than that of original stock</h3>

Explanation:

The formula to compute the volatility of a portfolio

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

Here,

The standard deviation of the first stock is σ₁

The standard deviation of the second stock is σ₂

The weight of the first stock W₁

The weight of the second stock W₂

The correlation between the stock c

a) If the correlation between the stock is +1

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times1} \\\\=0.33$

Hence, the volatility of the portfolio is 0.33 0r 33%

b) If the correlation between the stock is 0.50

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.5} \\\\=0.29$

Hence, the volatility of the portfolio is 0.29 0r 29%

c) If the correlation between the stock is 0.00

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.0} \\\\=0.23$

Hence, the volatility of the portfolio is 0.23 0r 23%

d) If the correlation between the stock is -0.50

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-0.5} \\\\=0.17$

Hence, the volatility of the portfolio is 0.17 or 17%

e) If the correlation between the stock is -1

$=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}$

$=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-1} \\\\=0$

Hence, the volatility of the portfolio is 0

<h3>In case of b, c, d ,e volatility is less than that of original stock</h3>

4 0

3 years ago

Your firm has net income of $245 on total sales of $1,080. Costs are $610 and depreciation is $120. The tax rate is 30 percent.

RSB [31]

Answer:

the operating cash flow is $365

Explanation:

the computation of the operating cash flow is shown below:

operating cash flow is

= Net income + depreciation expense

= $245 + $120

= $365

hence, the operating cash flow is $365

We simply added the net income and the depreciation expense to determine the operating cash flow

3 0

3 years ago

The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicate

Nikitich [7]

Answer: $164,300

Explanation:

Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.

= Beginning dividends payable + Dividends for the year - Ending dividends

= 43,200 + 160,000 - 38,900

= $164,300

8 0

3 years ago

Assume that the resort town of Ocean View passed a law imposing an extra tax on boardwalk food businesses that used plastic cups

TEA [102]

Answer:

The answer is: A) Is the law rationally related to a legitimate government interest?

Explanation:

A legitimate government interest applies when a government (in this case municipal government) passes a law to protect the health, safety, and economy of it's citizens.

This law will probably be reviewed using a rational basis, which is the least strict type of legal scrutiny.

3 0

3 years ago