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3 years ago

Explain demand of money

Business

1 answer:

krek1111 [17]3 years ago

7 0

Answer:

In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments. It can refer to the demand for money narrowly defined as M1 (directly spendable holdings), or for money in the broader sense of M2 or M3.

Explanation:

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You recently sold 200 shares of Disney stock, and the transfer was made through a broker. This is an example of: a. An over-the-

OleMash [197]

Answer:

C. A secondary market transaction.

Explanation:

In a secondary market, the investors buy and sell securities they own. It is typically known as the stock market although in the primary market stocks are sold too. But the difference is that the primary market is for companies and governments.

I hope this answer helps you.

4 0

3 years ago

Read 2 more answers

Use the following information to answer questions 4a.1-4a.5 Gerrell Corp. is comparing two different capital structures. Plan I

maxonik [38]

Answer:

Gerrel Corp.

EPS (Earnings per share) = Earnings after Tax/Number of outstanding shares

Plan I:

EBIT = $90,000

Interest = $4,750 ($95,000 x 5%)

Pre-Tax Income = $85,250

Income Tax Exp. 34,100 ($85,250 x 40%)

After Tax Income $51,150

EPS = $51,150/18,000 = $2.84 per share

Plan II:

EBIT = $90,000

Interest = $9,500 ($190,000 x 5%)

Pre-Tax Income = $80,500

Income Tax Exp. 32,200 ($80,500 x 40%)

After Tax Income $48,300

EPS = $48,300/14,000 = $3.45 per share

Plan III:

EBIT = $90,000

Pre-Tax Income = $90,000

Income Tax Exp. 36,000 ($90,000 x 40%)

After Tax Income $54,000

EPS = $54,000/22,000 = $2.45 per share

Explanation:

a) Data and Calculations:

Plan I = 18,000 shares + $95,000 debt

Plan II = 14,000 shares + $190,000 debt

Difference = 4,000 shares + $95,000 debt

Share price = $95,000/4,000 = $23.75

EBIT = $90,000

Interest Rate = 5%

Corporate Tax Rate = 40%

b) Capital Structure:

Plan I: (Equity and Debt)

Shares of 18,000 x $23.75 + $95,000 debt = $522,500 in total capital

Plan II: (Equity and Debt)

Shares of 14,000 x $23.75 + $190,000 debt = $522,500 in total capital

Plan III: (All-equity plan):

Shares of 22,000 x $23.75 = $522,500 in total capital

c) The Earnings per share is the measurement of the Net Income to stockholders divided by the number of outstanding shares. It gives an idea about the profitability of the entity, especially with regard to the profit made for common stockholders. The EPS is also one of the metrics used in the calculation of the P/E ratio to indicate whether a company's shares are undervalued or overvalued.

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3 years ago

Despite the doctors gloomy prognosis when i entered the hospital, i was up and about

aksik [14]

Despite the doctors gloomy prognosis when i entered the hospital, i was up and about "<span>in a matter of days".
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Prognosis refers to medical term which is used for foreseeing the probability of a man's survival. When connected to substantial factual populations, prognostic evaluations can be extremely exact: for instance the statement "40% of patients with serious septic shock will die in 30 days" can be made with some certainty, on the grounds that past research found that this extent of patients passed on. This factual data does not make a difference to the anticipation for every individual patient: extra data is expected to decide if a patient has a place with the 40% who will die, or to the 60% who will survive.

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3 years ago

Review three online articles that describe characteristics of a good investment opportunity. write a one - paragraph summary of

qwelly [4]

Answer:

1. Ownership Investments

Ownership investments are the most volatile and profitable class of investment. The following are examples.

Stocks

Owning stock means owning a portion of a company. It may be a miniscule stake, but it's ownership.

More broadly speaking, all traded securities, from futures to currency swaps, are ownership investments. Investors purchase them in order to share in the profits, or because they will increase in value, or both.

Some of these investments, such as stocks, come with the right to a portion of the company's value. Others, such as futures contracts, come with the right to carry out a certain action that will benefit their owners.

2. Let’s face it, starting a business can be expensive. Few entrepreneurs have the cash on hand to get the ball rolling without some outside help. If you’re starting a small business or looking to grow your business, you may seek financing through a traditional loan, a microloan, or cash from your friends and family. You can also seek funding from investors which is why it’s important to understand what investors look for before investing.

Remember that investors are fundamentally different from lenders, and you’ll need to consider that when you decide what kind of funding you want. Lenders give you money and you repay it with interest. Investors give you money in exchange for ownership of part of your business. Their investments may come with restrictions–that you have to get approval for transactions over a certain dollar amount, for example, or that you have to set up an independent Board of Directors. And investors have certain rights, too, which you should discuss with your lawyer before jumping in.

Investors can be a great thing for your business. First, an investor isn’t demanding repayment every month because it’s not a loan. An investor can also be a reliable source for business advice and may have a strong business network that you can draw on. But this isn’t free money – your investors will have certain expectations.

If you do decide that you want to seek funding from investors, how do you draw them in? What is it that makes them decide to put money into a business?

3. As an investor, you have a lot of options for where to put your money. It’s important to weigh types of investments carefully.

Investments are generally bucketed into three major categories: stocks, bonds and cash equivalents. There are many different types of investments within each bucket.

Here are six types of investments you might consider for long-term growth, and what you should know about each. Note: We won’t get into cash equivalents — things like money markets, certificates of deposit or savings accounts — as those types of investment accounts are less about growing your money and more about keeping it safe.

Explanation:

6 0

2 years ago

The money supply grew at a rate of 5% from 2015 to 2016. Since pen output did not change from 2015 to 2016 and the velocity of m

kvasek [131]

Answer:

True

Explanation:

If the total output of the economy does not change and the change in the money supply directly affected the changes in the price level, then the increase in the money supply will simply increase the inflation rate. For example, if the economy produced 100 units at $1 per unit, and the total money supply increases by 5%, the price of the units will increase to $1.05, but the total output will still be 100 units. The only thing that changed was a decrease in the relative value of the currency due to an increase in the inflation rate.

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3 years ago

Read 2 more answers

Explain demand of money​

Explain demand of money