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mote1985 [20]
3 years ago
8

How have recent financial disruptions changed the ways that financial markets are regulated?

Business
1 answer:
a_sh-v [17]3 years ago
7 0

It expands the regulatory authority for the Fed over non-depositary financial institutions, such as hedge funds and mortgage brokers, which had previously operated under little regulatory supervision or accountability. The Dodd-Frank Act of 2010 adopted by the Congress has also been in place. They were established to identify emerging risks within the financial sector in order to reinforce risky practices prior to the crisis.

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An investor in the 32% tax bracket is considering two investment options of equal risk: a corporate bond that yields 8.25% and a
Gala2k [10]

Answer: Corporate bond

Explanation:

It should be noted that the municipal bond aren't taxable. Therefore, its yield will be 4.75%.

On the other hand, the After Tax Cost of the yield of the corporate bond will be:

= Yield × (1-Tax Rate)

= 8.25% × (1-35%)

= 8.25% × 65%

= 5.36%

Therefore, the Corporate Bond should be chosen since it has a higher yield.

7 0
3 years ago
Bruno's Lunch Counter is expanding and expects operating cash flows of $26,900 a year for 6 years as a result. This expansion re
8090 [49]

Answer:

Net present value of this expansion project is 8234.

Explanation:

To get the net present value,  we make a cash-flow in excel. See document attached.

At moment 0 the investment is =$(92.700), also we consider the working capital =(6.600)

Moment 1 to 6 = $26.900

We calculate the Net cash flow (that is the difference between benefits and cost).

To get net present value, we use VNA formula.  ( =VNA(required rate of return; Net cash flow from moment 0 to moment 6) +Net cash flow at moment 0)

Net present value is 8234

4 0
3 years ago
JB Enterprises has $2.5 million of current assets and $1.5 million of current liabilities. Therefore, their current ratio is 1.6
MrRa [10]
It would be a 2.5 ratio
3 0
2 years ago
What picture pops into your head when you hear the word "criminal"? Describe in what you see in detail. What picture pops in the
myrzilka [38]

When I hear the word criminal, I think of someone who did something bad, really bad. This person probably stole a large item or robbed a bank for a large lump-sum of money. When I hear white collar criminal, I think of someone who stole from a company they work for or family member, even though they did not need to steal anything as they are well-off.

8 0
3 years ago
Scrubber, Inc, presented the following information in a note to its financial statements for the year ending December 31, 2016.
Reil [10]

Answer:

Yes, the cash balance is less than $75,000

Explanation:

a. b

Current ratio is more than required : No violation

Debt to equity ratio is less than stated: No violation

Cash balance as per books exceed 75000 but as per bank book less: violation

(As per bank reco the amount is different as company may not recorded bank charges and expenses as reflected in bank statement.

7 0
3 years ago
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