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3 years ago

When comparing a Variable Rate Demand Obligation (VRDO) to an Auction Rate Security (ARS), which statement is FALSE?

Business

1 answer:

lozanna [386]3 years ago

5 0

Answer:

Both have tender options.

Explanation:

Variable rate demand obligation and Auction rate securities both are long term bonds which have interest rate that reset weekly or monthly. This advantages the issuer with lower short term rates despite of long term security. Both of these securities are subject to credit risk of the issuer and they are marketed by broker dealers.

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Having fewer customers in business markets in comparison with consumer markets:

Gemiola [76]

Having fewer customers in a business market can be a positive, since it allows for the business to get to know those customers they do serve more closely and allows them to better cater to their needs. However, it can also be a negative because it makes every transaction with a customer vital to the overall bottom line and the vitality of the business.

8 0

3 years ago

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 68,00

Genrish500 [490]

Answer:

1.Total cost of making = $1,632,000.

2) Incremental cost of buying $204,000

3.)The company should make the product as it will save $204,000 by doing so

Explanation:

1) Total cost of making = unit cost× units required cost

Total cost of making = 24.00 × 68,000= 1,632,000.0

2) Total incremental cost of buying

Relevant cost of making

Unit variable cost= (5.00 + 9.00+ (30%× 10)=17

Total variable cost of making = 17 ×68,000 = 1,156,000

Relevant cost of buying 68,000× 20 = 1,360,000

Incremental cost of buying 204,000

3) Haver should make the product as it will save $204,000 by doing so

5 0

3 years ago

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make l

bagirrra123 [75]

Answer:

The equilibrium price would increase, and the equilibrium quantity would decrease.

Explanation:

With an increase in the cost of steamed milk, the cost of materials, one of the key factors in pricing decision would rise, which means that the equilibrium price of lattes would also increase. With an increase in price, according to the law of demand, there is a decrease in demand. Therefore, the quantity of lattes sold at the new equilibrium price would decrease.

The equilibrium price would increase, and the equilibrium quantity would decrease.

7 0

3 years ago

Sarah, Sam and Sally are on the same work group; they work well with other people in the same team but don't get along with each

pashok25 [27]

Answer:

dyadic

Explanation:

As dyadic refers to the small group in which the individual communicates with each other with regard to family issues, pleasure, work, interest, etc. This improves interpersonal social interaction so that people get to know each other properly.

Since the three individuals are on the same working group in the case, they work with the same team, but they don't get along together, which depicts the dyadic conflict.

7 0

3 years ago

2. What is the difference between compounding and simple interest? (2 points)

Svet_ta [14]

Answer: Simple interest is calculated only on the principal amount, when compounded is calculated on the principal amount and the interests.

Explanation:

Hi, the difference between compounding and simple interest is that the simple interest is calculated only on the principal amount deposited, the original amount.

A = P (1 + rt)

In the other hand, compounded interest is calculated on the principal amount and in the accumulated interests of the different periods (interest on interest)

A = P (1 + r/n) (nt)

n is the number of times that interest is compounded per unit t

5 0

3 years ago