Answer and Explanation:
Here, demand for investments or funds is larger than available saving. Hence, there would be shortage of fund in market. Shortage of fund in market would cause rise in interest rates.
Answer:
Selling administrative expense budget for the coming year is $3,346,900
Explanation:
In the coming year, Fazel expects total sales of $19,730,000. There is a 3% commission on sales.
Commission on sales expense = $19,730,000 x 3% = $591,900
Selling administrative expense budget for the coming year = Commission on sales expense + Salaries expense + Utilities expense + Office space expense + Advertising expense = $591,900 + $960,000 + $365,000 + $230,000 + $1,200,000 = $3,346,900
Answer:
(B) Leave his portfolio the way it is now
Explanation:
Bond value and market interest rates are inversely related. When the market interest rates are expected to decline and an investor already holds a bond with fixed rate of interest, the value of such bonds shall rise.
Market interest rates refer to the rate of interest other firms are offering on similarly priced bonds. Thus market interest rate also implies investor expectations i.e YTM (yield to maturity) which is used as a discounting factor to ascertain the price of a bond.
Lesser the discounting rate (yield to maturity), higher shall be the value of a bond.
Thus, it is recommended for Mr Smith to (B) leave his portfolio the way it is now.
Answer: Mines, Power Plants, Refineries, Office
Explanation: I just took the assignment good luck!