Answer:
Secondary market.
Explanation:
In this scenario, a five-year security was purchased two years ago by an investor who plans to resell it.
Hence, the security will be sold by the investor in the so-called secondary market.
When one investor sells his or her stock directly to another, the transaction is said to occur in the secondary market.
Secondary market can be defined as a market where various investors sell and buy securities from other investors.
Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).
On the other hand, the primary market refers to the market where these securities that are being sold are issued or created.
Answer:
c. $1,900
Explanation:
As for the information provided, we have:
Retained Earnings opening balance = $2,500
Current year loss = $200
Balance of retained earnings after this = $2,500 - $200 = $2,300
Now, dividends are provided which shall be paid from retained earnings only.
Cash dividends are the one paid in cash.
Stock dividends are the ones which are paid by issue extra shares from retained earnings.
Thus, both are deductible from retained earnings.
Therefore, closing balance of retained earnings = $2,300 - $200 - $200 = $1,900.
Answer:
the annual pre-tax cost of debt is 10.56%
Explanation:
the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.
We solve for the rate which makes the coupon and maturity 104
with excel or a financial calculator
PV of the coupon payment
C 5.500 (100 x 11%/2)
time 60 (30 years x 2 payment per year)
rate <em>0.052787474</em>
PV $99.4338
PV of the maturity
Maturity 100.00
time 60.00
rate <em>0.052787474</em>
PV 4.57
<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>
PV coupon $99.4338 + PV maturity $4.5662 = $104.0000
The rate is generated using goal seek or wiht a financial calculator.
This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:
0.052787474 x 2 = 0.105574947
The cost of debt for the firm is 10.56%
Answer: There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree
Explanation:
When making a career research, it's vital to consider the opinion of the people that already have that career as their occupation as they already have the required knowledge concerning the job.
Also, one should consider the availability of job, the skills, abilities that one has and the future prospects of the job.
Furthermore, we all have something we value about careers and our opinions regarding that might be different.
Therefore, the correct option is "There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree". This is false.
Answer:
d) The change to the equilibrium price of French chocolate souffle is ambiguous and the equilibrium quantity of French chocolate souffle falls
Explanation:
Inferior goods are those goods whose demand falls with the rise in the income of the consumer.
As per the given case, French chocolate souffle is an inferior good. When income of the consumer rises, his demand for French chocolate souffle will fall.
Similarly, when producers of such an inferior good decrease, the supply of French chocolate souffle shall fall.
With respect to the original equilibrium level, the demand curve shall experience a leftward shift i.e decrease whereas the supply curve too experiences a leftward shift i.e supply falls.
At the new equilibrium level, definitely the equilibrium quantity shall fall, but the change in equilibrium price cannot be ascertained as per the given information.
