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2 years ago

How do financial intermediaries impact the market efficiency?

2 answers:

6 0

These intermediaries help create efficient markets and lower the cost of doing business . Intermediaries can provide leasing or factoring services , but do not accept deposits from the public . Financial intermediaries offer the benefit of pooling risk , reducing cost , and providing economies of scale , among others .

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erastovalidia [21]2 years ago

3 0

Answer:

help create efficient markets and lower the cost of doing business. Intermediaries can provide leasing or factoring

Explanation:

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Remember, a bond’s coupon rate partially determines the interest-based return that a bondwill pay, and a bondholder’s required r

Vedmedyk [2.9K]

COMPLETE QUESTION:

Fill in the Blank:

Remember, a bond's coupon rate partially determines the interest-based return that a bond ______ pay, and a bondholder's required return reflects the return that a bondholder _______ to receive from a given investment.

Answer:

will, would like

Explanation:

The answers above correctly fills in the blanks in the question.

Remember, a bond's coupon rate partially determines the interest-based return that a bond WILL pay, and a bondholder's required return reflects the return that a bondholder WOULD LIKE to receive from a given investment.

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2 years ago

Which of the following is a criterion that must be met in order for an item to be recognized as an intangible asset?

Amiraneli [1.4K]

Answer:

The item is identifiable and lacks physical substance.

Explanation:

Intangible asset: Intangible asset is that asset which cannot be seen or even touched. It has no physical existence.

Example: Goodwill, patents, trademarks, copyrights and other intellectual properties

In these types of assets, amortization is charged instead of depreciation.

It neither used for production, nor its gains any scientific or technical knowledge, and its value neither measure reliability

Hence, option a is correct

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3 years ago

Mendrisio Company purchased a piece of machinery for $30,000 on January 1, 2019, and has been depreciating the machine using the

aleksley [76]

Answer:

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

Debit Credit

Depreciation Expense $3,000

Accumulated Depreciation $3,000

Explanation:

According to the given data we have the following:

Sum of year digits=5(5+1)/2

Sum of year digits=(5*6)/2

Sum of year digits=15

Depreciation for year 2019=$30,000*5/15

Depreciation for year 2019=$10,000

Depreciation for year 2020=$30,000*4/15

Depreciation for year 2020=$8,000

Therefore, book value as on january 1, 2021=$30,000-$10,000-$8,000

book value as on january 1, 2021=$12,000

Revised useful life=6 years-2 years=4 years

Therefore, Revised depreciation for 2021=$12,000/4

Revised depreciation for 2021=$3,000

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

Debit Credit

Depreciation Expense $3,000

Accumulated Depreciation $3,000

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2 years ago

Westwick Inc. is an advertising agency. Its employees are allowed to take decisions and work in ways that will help maximize the

Anna35 [415]

Answer:

<em>C) Organizational plurality </em>

Explanation:

Organizational plurality is a working environment in which all representatives are encouraged to collaborate in a way that promotes the gains for the company, clients and themselves.

As with the advertising agency, the employees are given chances to follow their decisions and maximize their experience.

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3 years ago

Ethier Enterprise has an unlevered beta of 1. Ethier is financed with 55% debt and has a levered beta of 1.1. If the risk free r

tresset_1 [31]

Answer:

The correct answer is 0.4%.

Explanation:

According to the scenario, the computation for the given data are as follows:

If no debt, then required return can be calculated by using following formula:

Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium

= 6% + 1 × 4%

= 0.06 + 0.04

= 0.10 or 10%

If debt, then required return can be calculated by using following formula:

Required return ( with debt) = Risk free rate + levered Beta × Market risk premium

= 6% + 1.1 × 4%

= 0.06 + 0.044

= 0.104 or 10.4%

So, extra premium required = 10.4% - 10% = 0.4%

6 0

3 years ago

How do financial intermediaries impact the market efficiency?​

How do financial intermediaries impact the market efficiency?