Answer:
D. Capital market instruments include both long-term debt and common stocks.
Explanation:
Capital market is financial market where long term instruments are traded. These instruments include bond, common stocks and debenture. With this background, statement in option D is correct.
Option A is not correct because reverse is the case: investment banks raise large blocks of capital from investors while commercial banks specialize in lending money.
Option B and E are not correct, too. Transaction under them are examples of a secondary market transaction.
Option C is wrong, as well. NYSE has a physical location where trading activities happen.
So option D is the only correct statement because capital market instruments are long-term debt and common stocks.
Answer:
850
Explanation:
It's considered the unicorn of the financial world: a perfect credit score, the highest number a consumer can achieve within a credit scoring system. For the FICO® Score☉ , one of the most commonly used credit scoring models, that mythical and seemingly impossible figure is 850. (FICO® Scores range from 300 to 850.)
Answer:
d. $13,100
Explanation:
Net Present value = [Future Annual cash flows * PVIFA (3, 9%)] - Initial investment
Net Present value = [$100,000*2.531} - $240,000
Net Present value = $253,100 - $240,000
Net Present value = $13,100
A <u>time-share</u> operates like an exclusive-use site but it is leased in conjunction with a business partner or sister organization.
Explanation:
- Time-share is one of the shared-use resumption strategy.
- It is the leased site shared with organizations to provide assistance in case of disasters.
- More than one organization may use the site simultaneously.
Answer:
Effect on income= $68,580 increase
Explanation:
<u>Because it is a special order, and there is unused capacity, we will not take into account the fixed costs. Only the variable ones.</u>
<u>First, we need to calculate the unitary cost:</u>
Unitary cost= 46.1 + 8.8 + 1.8 + 1.3
Unitary cost= $58
<u>Now, the effect on the income of accepting the offer:</u>
Effect on income= 2,700*(83.4 - 58)
Effect on income= $68,580 increase