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Vikki [24]
3 years ago
9

A customer has an existing portfolio that is mainly invested in high quality corporate bonds for stable income. As market intere

st rates have dropped, the customer's income has declined and she would like to allocate part of the portfolio to corporate bonds that offer potential growth. The BEST recommendation is to buy:
Business
1 answer:
vredina [299]3 years ago
3 0

Complete question:

A customer has an existing portfolio that is mainly invested in high quality corporate bonds for stable income. As market interest rates have dropped, the customer's income has declined and she would like to allocate part of the portfolio to corporate bonds that offer potential growth. The BEST recommendation is to buy:

a). convertible debentures

b). equipment trust certificates

c) long term zero coupon bonds

d). commercial paper

Answer:

a). convertible debentures

Explanation:

Convertible debentures also known as convertible bonds, are a form of long term bonds, they are the type of bonds that can be converted into common stock or cash of equivalent value by the issuing company.

In this case, the customer has an existing portfolio that is mainly invested in high quality corporate bonds. The customer's income declined as a result of drops in market interest rates. The best recommendation to buy would be convertible bonds, because, when markets interest rate rises, value of the cutomer's convertible bond also rises. Here there is always a potential for growth. But this cannot be said for the other three options (equipment trust certificates, long term zero coupon bonds and commercial paper).

Thus the best recommendation would be to buy convertible debentures.

Option A is correct

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DiskSan has to order flash transistors ($5 each) to create USB flash memory drives. Their monthly demand is 10,000 units, their
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Answer

Economic order quantity will be 447.21

Explanation:

We have given monthly demand = 10000 units

We know that 1 year = 12 month

So Annual demand (D) = monthly demand × 12 months = 10000 × 12 = 120000 units

Cost of transistor = $5 per unit

Monthly Holding cost = 10% of cost = 10% of $5 = $0.50

So annual holding cost (H) = monthly holding cost × 12 = $0.50 × 12 = $6

Setup cost(S) = $5

We know that economic order quantity is given by

Economic order quantity = \sqrt{\frac{2DS}{H}}=\sqrt{\frac{2\times 12000\times 5}{6}}=447.21

7 0
3 years ago
Hospitals, colleges and universities, and museums fall into the ______ category of business customers. reseller market governmen
sineoko [7]

Institutional markets are the category under which hospitals, colleges, museums, and universities come.

Institutional organizations buy goods and services for the production of their own goods and services. They are non-profit organizations that are established only to offer services to the public. These markets are categorized as low budgets and captive patrons.

The main player of the institutional department is the government. Most hospitals, colleges, universities, and museums fall under the control of the government. For the other hospitals, colleges, universities, and museums that are under the private players, a seperate account will be maintained by them for maintaining the record of transactions.

The other option like business customers which deals with the normal buying and selling transactions. The reseller market consists of the wholesaler market that sells goods to the retailer for reselling the goods. The government market is where government transactions are carried on. The producer market produces the goods or manufacturers the goods and sells them to the market. So the institutions that are provided all come into the institutional markets.

Learn what is institutional markets here:

brainly.com/question/25070188

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8 0
2 years ago
An airport in Japan is planning to purchase a parcel of land for building additional executive hangars in five years. The price
Vsevolod [243]

Answer:

The airport should invest a uniform amount of A=$357,958.55

Explanation:

Hi

First of all, we need to know how much will cost the land in five years so we have, F=2000000*(1+0.05)=2100000, that means that the future value of the land will be $2'100,000.

Now we can use A=\frac{F}{\frac{(1+i)^{n} -1}{i} } with F=2100000, n=5 and i=8%, so we have A=\frac{2100000}{\frac{(1+008)^{5} -1}{0.08} }=357958.55

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3 years ago
Ruiz Engineering Contractors incurred service salaries and wages of $37,700 ($27,300 direct and $10,400 indirect) on an engineer
olganol [36]

Explanation:

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5 0
3 years ago
Suppose that the bankruptcy law firm had previously loaned $20,000 to Henry Anderson. The law firm filed a financing statement s
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Answer: This loan would would have priority over the other unsecured claims in this bankruptcy case.

Explanation:

Since the trucks are secured collateral the loan is a secure loan. It will be the priority in the bankruptcy case since the other claims were unsecured. The law firm would have a right to the trucks since he owed them 20,000$ and put them up as collateral.

Everything that was an unsecured loan does not have anything to take from and will be a loss for the other companies who filed against Henry Anderson.

8 0
3 years ago
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