Before 2008, the investment bankers thought that buying home mortgages was a good and safe investment because it was a stable investment, which is less impacted by inflation.
The “subprime” mortgages were more riskier than “prime” mortgages because the lender were more likely to default the mortgage.
<h3>What was the event "
Crisis of Credit" about?</h3>
The Crisis of Credit, also known as the financial crisis of 2008 or Global Financial Crisis referred to a severe worldwide economic crisis that occurred in the early 21st century. It was considered the most serious financial crisis since the Great Depression (1929).
In 2008, the financial crisis began with cheap credit and lax lending standards that fueled a housing bubble. When bubble burst, all banks were left holding trillions of dollars as worthless investments in subprime mortgages and the Great Recession that followed cost many their jobs, their savings and their homes.
Read more about Crisis of Credit
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Answer:
Cumulative voting
Explanation:
Cumulative voting - in this type of voting system sole right is given to shareholder who is in minority to elect their director. this system permit shareholder to cast all their vote for any single nominee for board of directors.
while in regular voting system no permission is granted to anyone to cast more than one vote.
example - for four member and 500 holding share , maximum vote than can cast is 500 (one vote for one share) in normal voting but in cumulative maximum that can cast is 2000 votes
Answer:
d. all of the above
Explanation:
Six sigma as a 99.9997% rate of perfections which amounts to 3.4 error per million transaction.
Six sigma is an effective methodology that helps to reduce cost and decrease cycle time.
It is a methodology that increases productivity and efficiency in process, it also reduces the amount of defects and helps to eliminate it.
Answer: Present value of the cash flows of the company is $1,158,824.
Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.
The present value of the cash flows for perpetuity with decreasing growth rate is:
where, Cash flow for the year 1 (C1) = $197,000
Discount rate (r) = 11%
Growth rate (g) = -6%
![Present value of the cash flows (PV) = $197000/[0.11 - (-0.060)]](https://tex.z-dn.net/?f=%20Present%20value%20of%20the%20cash%20flows%20%28PV%29%20%3D%20%24197000%2F%5B0.11%20-%20%28-0.060%29%5D%20)
Present value of the cash flows (PV) = $1,158,824
Therefore the present value of the cash flows of the company is $1,158,824.
Answer:
level of quality
Explanation:
For Kira the restaurant has a low level of quality
