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3 years ago

Drag each option to the correct location on the image.

Business

1 answer:

zaharov [31]3 years ago

6 0

Answer:

see below

Explanation:

Macroeconomics focuses on the performance and behavior of the overall economy or market system. Microeconomics is concerned with how individual households and firms' decisions affect the demand and supply of a specific good.

MACROECONOMICS

Gross domestic product

Economy

MICROECONOMICS

Individuals' income

Household

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Mills Corporation acquired as an investment $260 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holdi

aleksandrvk [35]

Answer:

Dr Investment in Bonds 260

Dr Premium on Investment in Bonds 40

Cr Cash $300

Dr Cash$7.8

Cr Premium on Investment in Bonds $1.8

Cr Interest Revenue $6

Dr Investment in bonds $260

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds -$1.8

Cr Carrying Value $298.2

Dr Cash $314

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds amortized -$1.8

Dr Investment in bonds $260

Cr Gain due to investment sale $15.8

( $260+$40-1.8)-314

Explanation:

Mills Corporation Journal Entry ( $ million)

Dr Investment in Bonds 260

Dr Premium on Investment in Bonds 40

(300 -260)

Cr Cash $300

Dr Cash

($260 million X 6% / 2) $7.8

Cr Premium on Investment in Bonds $1.8

Cr Interest Revenue

($300 million X 4% / 2) $6

Dr Investment in bonds $260

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds -$1.8

Cr Carrying Value $298.2

($260+$40-$1.8

Dr Cash $314

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds amortized -$1.8

Dr Investment in bonds $260

Cr Gain due to investment sale $15.8

( $260+$40-1.8)-314

8 0

3 years ago

(TCO E & F) A bank is facing a forecast of rising interest rates. How should they set the repricing and duration gap?

Aleonysh [2.5K]

Answer:

The repricing and duration gap can be set likely by :

A. Positive repricing gap and negative duration gap

Explanation:

Here, we can see the mentioned topic is

The forecasting of rising interest rates. So, the bank is facing this issue then they will have to set the values as :

A. Positive repricing gap and negative duration gap

Forecasting of rising interest rates: It is a very tough thing to do. In financial analysis this is one the hardest assumptions that have to be made.

Its prediction in financial analysis is very complicated. This results in the rates to a lower value which results in money of the bank to outflow.

As by forbes for this year it had been predicted that it would not be rising interest rates in 2020.

Even that the growth of economy will be very low and all will be worrying about the inflation.

A high recession will be noticed by us.

This will results in money lending rates to be quite too high.

5 0

3 years ago

Carolina is using world-systems theory to research resource-rich countries that tend to send resources to the wealthiest nations

NeTakaya

Answer:

Peripheral Countries

Explanation:

Resource-rich countries that tend to send resources to the wealthiest nations, which then sell them back to those countries for a profit are peripheral countries.

Periphery countries are those which possess a marginal portion of the world's wealth, and are dependent on developed capitalist nations which has led to their exploitation.

world-systems theory tends to highlight the issue of global inequality among nations of the world

8 0

3 years ago

According to the law of supply:_______.A. There is a positive relationship between price and quantity supplied. B. As the price

lora16 [44]

Answer:

D. A and C only

Explanation:

According to the law of supply: There is a direct or positive relationship between price of goods & services and quantity supplied in the market. It says that if price of goods increases in the market, then supply of goods also increases, which help the supplier to gain more profit out of high price in the market. It show upward slope of supply curve in the graph, which is positive relation of quantity supplied and price of goods.

4 0

3 years ago

Western Electric has 34,500 shares of common stock outstanding at a price per share of $84 and a rate of return of 12.75 percent

nikitadnepr [17]

Answer:

Cost of common stock (Ke) = 12.75%

Cost of preferred stocks (Kp) = $8.30/$97.50

= 0.0851 = 8.51%

Cost of debt = 8.23%

WACC = Ke(E/V) + Kp(P/V) + Kd(D/V)(1-T)

WACC = 12.75(2,898,000/4,109,690) + 8.51(736.125/4,109,690) + 8.23(475,565/4,109,690)

WACC = 8.99 + 1.52+ 0.95

WACC = 11.46%

Market value of the company: $

Market value of common stocks (34,500 x $84) 2,898,000

Market value of preferred stocks (7,550 x $97.50) 736,125

Market value of debt ( $419,000 x $113.5/$100) 475,565

Market value of the company 4,109,690

Explanation:

In the case, the cost of common stock and cost of debts are given. There is need to calculate cost of preferred stocks, which is the ratio of dividend to current market price of the preferred stocks. Dividend on preferred stocks is calculated as 8.30% x $100 par value, which is $8.30.

We also need to calculate the market value of the company, which is the aggregate of market value of common stock, market value of preferred stock and market value of debt,

WACC is calculated as the aggregate of cost of each stock and the proportion of the market value of each stock to the market value of the company.

6 0

4 years ago