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3 years ago

Can we imagine life without trade?Why or why not? Explain in briefly.

Business

1 answer:

aleksklad [387]3 years ago

3 0

Answer:

Explanation:

we need to trade in order to get different products because we cannot make everything ourselves.

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One reason to buy a home instead of rent a home is:

Natali [406]

It’s better to buy a home instead of renting a home because when you rent, your paying someone else’s mortgage! Whereas when you buy a home, you’re paying your own mortgage not someone else’s. It’s also better to buy a house because when you rent, you can’t change anything about the house because it’s essentially not yours. For example, if you wanted to plant s tree in the backyard of your rented house, you wouldn’t be able too because it’s not your yard. Whereas if you bought your house, you could do whatever you want to it because it’s yours.
I hope this helped! :-)

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3 years ago

Read 2 more answers

The is the interest rate that a firm pays on any new debt financing. Andalusian Limited (AL) can borrow funds at an interest rat

valina [46]

Answer:

5.34%

The correct option is C,5.60%

Explanation:

The are two requirements here,the first is after cost of debt for the first part of the case study and after tax cost of debt for the second part of the scenario:

1.after tax cost of debt=pretax cost of debt*(1-t)

pretax cost of debt is 9.7%

t is the tax rate at 45% or 0.45

after tax cost of debt=9.7%*(1-0.45)=5.34%

The pretax cost of debt here is computed using the rate formula in excel:

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond pays coupon interest which is 15

pmt is the annual coupon interest receivable by investors i.e $1000*12%=$120

pv is the current market price of the bond which is $1,136.50

fv is the face value of the bond at $1000

=rate(15,120,-1136.50,1000)

rate =10.19%

after tax cost of debt=10.19% *(1-0.45)=5.60%

7 0

3 years ago

Instructing your broker to buy or sell a stock at a particular price is a:

Liula [17]

Trading or Marketing guides/instructions

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3 years ago

You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and

Vedmedyk [2.9K]

Answer:

Monthly withdraw= $5,870.6

Explanation:

Giving the following information:

Stock:

Monthly deposit= $700

Interest rate= 0.075/12= 0.00625

Number of periods= 30*12= 360

Bond:

Monthly deposit= $400

Interest rate= 0.055/12= 0.0045833

Number of periods= 30*12= 360

First, we need to calculate the value of the investment at the moment of retirement:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

FV= {700*[(1.00625^360) - 1]} / 0.00625

FV= $943,211.797

Bond:

FV= {400*[(1.00458^360) - 1]} / 0.00458

FV= $365,447.415

Total FV= $1,308,659.212

Now, the monthly withdrawal:

Interest rate= 0.025/12= 0.002083

Number of periods= 25*12= 300

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (1,308,659.212*0.002083) / [1 - (1.002083^-300)]

Monthly withdraw= $5,870.6

7 0

3 years ago

When an entrepreneur starts a business, there is a risk that the business will fail. which of the following best explains why an

Olegator [25]

The entrepreneur hopes to make a profit.
Hope that helps! Please don't forget to rate me!

5 0

3 years ago

Read 2 more answers

Can we imagine life without trade?Why or why not? Explain in briefly.​

Can we imagine life without trade?Why or why not? Explain in briefly.