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Alexxx [7]
3 years ago
13

"A customer buys a Brokered CD for $100,000. Upon receipt of his next account statement, the customer sees that the market value

of the CD is shown as $99,800. This would occur because:"
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
8 0

Answer:

market rates have increased

Explanation:

Bonds as well as brokered CDs are priced depending on the market's interest rates for similar investments. For example, the CD pays a 3% interest, and then the market rate increases to 3.1% (or more), the CD's price will decrease. On the other hand, if the market rates decrease to 2.9% (or less), the CD's price will increase.

You might be interested in
Read the scenario, and answer the question.
Strike441 [17]

Answer:

One possible revision suggestion for the previous follow-up letter is to:

c. Identify the position he applied for and the date of the interview.

Explanation:

Stating clearly the position that Enrique interviewed for and the the date of the interview will enable the interviewer to reconsider the candidacy of Enrique for the copy-editor position.  However, the wording of his first draft of the follow-up email sounds too condescending.  Enrique should not display some desperation in his job-search effort.

3 0
3 years ago
A firm has a profit margin of 12 percent; total asset turnover of 0.55 and an equity multiplier of 2.2. What is the firm's ROA a
lutik1710 [3]

Answer:

ROA = 6.6%

ROE 14.52%

Explanation:

profit margin = net income / sale = 12%

assets turn over = sales / assets = 0.55

equity mutiplier = assets / equity = 2.2

ROE = return on equity = net income / equity

ROA = return on equity = net income / assets

we use the fraction properties to get ROE and ROA

\frac{income}{sales} \times \frac{sales}{Assets} =\frac{income}{Assets} \\ 0.12 \times 0.55 = 0.066\\

ROA = 6.6%

We apply the same property to get ROE

\frac{income}{assets} \times \frac{assets}{equity} =\frac{income}{equity} \\ 0.066 \times 2.2 = 0.14252\\

ROE = 14.52%

6 0
4 years ago
Alpha Corporation reported the following data for its most recent year: sales, $670,000; variable expenses, $420,000; and fixed
MariettaO [177]

Answer:

the degree of operating leverage is 5

Explanation:

The computation of the degree of operating leverage is given below:

= Contribution margin ÷ EBIT

= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)

= ($670,000 - $420,000) ÷ ($670,000 - $420,000 - $200,000)

= $250,000 ÷ $50,000

= 5

Hence, the degree of operating leverage is 5

3 0
3 years ago
A project manager has just been assigned to a new project and has been given the project charter. The FIRST thing the project ma
Nookie1986 [14]

Answer:

Confirm that all the stakeholders have had input into the scope.

Explanation:

When assigned to a new project, the project manager may be tempted to start planning immediately. One may conclude that the first thing is planning. It will be wise and smart to understand the project charter before planning. Therefore, it is very important to " Confirm that all the stakeholders have had input into the scope." So, Option B is the correct answer.

7 0
3 years ago
Holtzman Clothiers's stock currently sells for $40.00 a share. It just paid a dividend of $1.75 a share (i.e., D0 = $1.75). The
VladimirAG [237]

Answer: See explanation

Explanation:

a. What stock price is expected 1 year from now?

This will be calculated as:

= P0 × (1 + g)

where,

P0 = $40

g = growth rate = 7%

= P0 × (1 + g)

= 40 × (1 + 7%)

= 40 × (1 + 0.07)

= 40 × 1.07

= $42.80

b. What is the required rate of return?

This will be:

= (D1 / P0) + g

where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725

= (D1 / P0) + g

= (1.8725 / 40) + 0.07

= 0.1168

= 11.68%

5 0
3 years ago
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