Answer:
b. mortgage backed securities diversify credit risk for the investor.
Explanation:
An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because <u>mortgage backed securities diversify credit risk for the investor.</u>
In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.
Answer:
e. All of the above are inputs required for capital budgeting analysis.
Explanation:
All of the given parameters are inputs required for capital budgeting analysis. is an input required for a multinational capital budgeting analysis, given that it is conducted from the parent's viewpoint.
a. Salvage value
Salvage value is the estimated resale value of an asset at the end of its useful life. It is an applicable cashflow in investment appraisal
b. Price per unit sold
This is the parameter used to calculate the amount of revenue which is the first line of cashflows in an investment appraisal
c. Initial investment
This is the amount that is first spent on capital acquisition of machinery or construction, it is a cashflow in year 0, of investment appraisal
d. Consumer demand
This is the another parameter used to calculate the amount of revenue which is the first line of cashflows in an investment appraisal
Answer:
D(p) = 2,000 ÷ Price + 434
Explanation:
The computation of the demand function is shown below:-
Number of units of the product = 3000 ÷ Price + C
834 = 2,000 ÷ $5 + C
834 = 400 + C
C = 834 - 400
C = 434
So, D(p) = 2,000 ÷ Price + 434
Therefore for computing the demand function we simply applied the above formula also we considered all the given information mentioned in the question
Answer:
The correct answer is letter "C": financing activities.
Explanation:
Cash flow refers to transferring cash to, or from, an account, a company, or an investment. In the cash flow statement, there is a section called "<em>Financing Activities</em>" where all the net flow of cash to fund the entity is recorded. Those activities imply the <em>firm's equity, debt, </em>and <em>dividends</em>.
Answer:
Correct option is B.
First movers have an advantage because their customers avoid switching costs.
Explanation:
First movers have an advantage because their customers avoid switching costs. This is not true about High- Technology Industries.
