1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Likurg_2 [28]
3 years ago
12

Financial instruments Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinat

e the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors. Identify the financial instruments based on the following descriptions.
a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
b. U.S. Treasury notes and bonds Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
c. Money market mutual funds These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper.
Business
1 answer:
Ivanshal [37]3 years ago
5 0

Answer:

a. U.S Treasury bills.

b. Commercial paper.

c. Money market mutual funds.

Explanation:

A Treasury Bill can be regarded as short-term debt obligation of U.S. government, This is is usually fully supported by Treasury Department, it's maturity is within one year or one year. T- billls is usually offer for sold at

$1,000, and can reach as high as $5 million.

Commercial paper can be regarded as

money-market security which is usually issued by large corporations so that funds can be obtained to cater for

short-term debt obligations that arises.

money market fund can be regarded as open-ended mutual fund which is been invested on short-term debt securities. This debt securities could be

US Treasury bills as well as commercial paper.

You might be interested in
Below are trends in operating cash flows for three companies. based on an analysis of operating risk, which company's management
Tems11 [23]
La empresa número 2 en efectivo 
5 0
3 years ago
Firm A has $1 million in operating income and pays $250,000 in interest. In addition, firm A has $7.50 EPS. Firm B has an operat
Vitek1552 [10]

Answer:

$10.00

Explanation:

Earning per share is the ratio of net Income of the business per outstanding share of the business after deducting the preferred dividend from net earning. It shows how much each stockholder earn against their each share in a specific period.

Earning Per share ( EPS ) of Firm A  = $7.50 per share

Number of outstanding share can be calculated as follow

EPS  = Net Income / Outstanding Numbers of share

Outstanding Numbers of shares = Net Income / EPS

Outstanding Numbers of shares = ($1,000,000 - $250,000) / $7.5 per share = 100,000 shares

Firm B

As Tax will be ignored, interest expense is also same as the Firm A and numbers of share is also sames.

Operating Income = $2.0 million = $2,000,000

Less: Interest expense                    $250,000

Net Income                                      $175,000

EPS = $175,000 / 100,000 share = $17.5 per share

Difference  = $17.5 - $7.5 = $10 per share

8 0
3 years ago
Roger must create a feasibility study to see how the money from the investor could be spent to best enhance the business's money
antiseptic1488 [7]

Answer: quality plan

Explanation:

A feasibility study is used to know if a project is feasible and therefore worth undertaking or not. It is an analysis that takes into consideration of all the factors that are relevant to the project into account. These factors include the technical, economic, legal, political factors etc in order to ascertain if the project will be successful.

The option that doesn't belong in the feasibility study is the quality plan. This isn't part of the feasibility study and therefore is the correct option. Other options belong in the feasibility study.

3 0
3 years ago
Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investm
sammy [17]

Answer:

1) Accounting rate of return is 8.2%

2) Payback period is 5.95 years

3) Net present value (NPV) is ($88,643.26)

4) Option B

Explanation:

Initial Investment = $720,000 , Useful life = 10 years , Salvage Value = $100,000

Annual Net Income generated = $59,040 , Cost of capital = 14%

Depreciation = ($720,000 - $100,000) ÷ 10 = $62,000

Annual Cash flows = $59,040 + $62,000 = $121,040

1) Accounting rate of return = (Annual Net Income ÷ Average Investment) × 100

= (59,040 ÷ 720,000) × 100

= 8.2%

2. Payback Period = Initial Investment ÷ Annual Cashflows

= 720,000 ÷ 121,040

= 5.95 years.  

3. PV of cash flows = 121,040 × PVAF(14% for 10 years)

= 121,040 × 5.2161

= $631,356.74

Less: PV of cash outflow = $720,000

Net present value (NPV) = (88,643.26)

4. If IRR = Discount rate, then NPV = 0

If IRR < Discount Rate, Then NPV is negative

If IRR > Discount Rate, Then NPV is positive

Here NPV is negative, so IRR is less than discount rate i.e.14%

5 0
3 years ago
ABC Production ABC Production, a consumer products firm with a functional structure, is expanding from a single product line int
Tamiku [17]

Answer:

Divisional product structure

Explanation:

Divisional product structure is also called product based structure. It comprises of separate divisions that that function individually and focus on a different product or service.

Each division has a product line they work in, a set of clients they service, and a geographical location.

The major advantage not this type of departmentalization is that each department will more efficient in their service delivery as they specialise on one thing.

This will be the best structure for ABC Production ABC Production who are expanding from a single product line into several diverse product groups, with most sales within one country.

4 0
3 years ago
Other questions:
  • Match the appropriate costing method to the description
    9·1 answer
  • 2. Julia is interested in knowing how many grams of protein she should have in addition to the calories from protein. She often
    7·1 answer
  • Total variable costs A. always increase with output. B. initially decrease and then increase with output. C. initially increase
    13·1 answer
  • Which describes the process of how a business incorporates?
    11·1 answer
  • Zoe Corporation has the following information for the month of March: Cost of direct materials used in production $16,700 Direct
    12·1 answer
  • Which of the following is a duty of a personal finance manager?
    10·2 answers
  • Production and sales estimates for March for Robin Co. are as follows: Estimated inventory (units), March 1 18,400 Desired inven
    7·1 answer
  • Show the effect of each transaction on the three basic accounting elements by indicating the dollar amount of the increase or de
    11·1 answer
  • Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31
    12·1 answer
  • a 16-year-old applied for a conventional loan in order to purchase a condominium. the lender denied the application, citing the
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!