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kap26 [50]
3 years ago
13

Securitization, the process of forming new securities by bundling or slicing up groups of securities like mortgages and bonds, i

s
a. considered shady by legitimate financial institutions.
b. well understood by financial analysts and managers who engaged in it.
c. still only a minor portion of the modern financial system.
d. a way of reducing risk through diversification.
Business
1 answer:
maw [93]3 years ago
6 0

Answer:

The correct answer is letter "A": a way of reducing risk through diversification.

Explanation:

Securitization is the process of converting an asset or group of assets into a marketable security. Often, the securitized assets are divided into different layers tailored to the<em> investment risk tolerance</em> of different types of investors. The process of securitization creates liquidity in the marketplace for the assets being securitized.

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In the fourth stage of rational decision making, managers will _____. evaluate the alternatives and select a solution implement
Ludmilka [50]

Answer:

The correct answer is: implement and evaluate the chosen solution.

Explanation:

Companies generally use different strategies to make decisions to obtain the best benefits. For example, companies often use the rational decision-making process to focus on analysis and logic, leaving subjectivity aside.

Through this method, different steps of the decision-making method are followed to achieve the objectives proposed objectively.

<em>For example, in the fourth step, the chosen solution must be implemented and evaluated, the managers are in charge of analyzing and executing the action plan</em>, in this way they evaluate each result obtained to know if the actions taken are the best and are reaching their goals.

<em>I hope this information can help you.</em>

6 0
3 years ago
The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommen
eimsori [14]
B psychological needs
6 0
3 years ago
To help finance a major expansion, Top Fashion Company sold a noncallable bond several years ago that now has 20 years to maturi
Basile [38]

Answer:

4.51%

Explanation:

First, find the yield to maturity(YTM) of the bond; this would be the pretax cost of debt.

Using a financial calculator, input the following;

Face value of the bond ; FV = 1000

Semiannual coupon payment; PMT = (8%/2)*1000 = 40

Present value of bond; PV = -1050

Time to maturity; N = 20*2 = 40 semiannual payments

then compute semi-annual interest rate ; CPT I/Y = 3.756%

The pretax cost of debt = 3.756% *2 = 7.51%

After tax-cost of debt is used for WACC calculation and is therefore as follows;

7.51%(1-0.40) = 4.51%

3 0
3 years ago
Sensors in parking lots are able to detect and communicate when spaces are filled in a large covered parking garage next to an u
exis [7]

Answer: C. The owners of the parking garage can advertise about the availability of parking. They can also communicate with businesses about hours when more spots are available and when they should encourage more business

Explanation:

Since we are informed that the sensors in the parking lots are able to detect and communicate when spaces are filled in a large covered parking garage next to an urban shopping mall, this can be beneficial to the owners of the parking garage as they can advertise the availability of parking.

The owners can also speak to the business about the hours when there are available spots.

8 0
3 years ago
Nickel Inc. bought $500,000 of 3-year, 6% bonds as an investment on December 31, 2017 for $530,000. The investment receives inte
tankabanditka [31]

Answer:

the gain would be reported i.e. $10,778

Explanation:

The computation is shown below:

The Value of 100000 bonds is

= $530,000 ÷ $500,000 × 100,000

= $106,000

Now

Premium amortization in 4 month is

= $7,000 ÷ 36 months × 4 months

= $778

Now

Carrying value on may 1, 2018 is

= $106,000 - $778

= $105,222

Now

Retirement value is

= 100,000 × 1.16

= 116,000

So,

Gain on retirement is

= 116,000 - 105,222

= $10,778

Hence, the gain would be reported i.e. $10,778

7 0
3 years ago
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