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3 years ago

Compare the 3 main types of markets(Stock, Bond, Commodities), and give an example of how each could function.

Business

1 answer:

kupik [55]3 years ago

7 0

Answer:

In a company you are given partial ownership by Stocks, and a company or government loan by you. The biggest difference among them is how they generate profit: inventories must be valued and sold later, while most bonds pay fixed interest over time.

Explanation:

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Determine which of the following countries would be classified as 'growth miracles' or 'growth disasters'. Which of the followin

Makovka662 [10]

Answer:

A Growth miracle can be something that tremendously changes your buisness in a good way. A Growth Disaster can be something that sets a company back to square one such as overdue bills or drowning in debt.

Explanation:

5 0

3 years ago

Fischer Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direc

Trava [24]

Answer:

Difference= $60,000 in favor of buying

Explanation:

Giving the following information:

Number of units= 12,000

Make in-house:

Direct material, $15

direct labor, $27

variable overhead, $15

applied fixed overhead, $32

Buy:

Buying price= $60

If Fischer buys the part, 75 percent of the applied fixed overhead would continue.

First, we will calculate the avoidable fixed overhead per unit:

Avoidable fixed overhead= 32*0.25= $8

Now, the total differential cost of making in-house:

Total cost of production= 12,000*(15 + 27 + 15 + 8)

Total cost of production= 12,000*65

Total cost of production= $780,000

Total cost of buying= 60*12,000= $720,000

Difference= $60,000 in favor of buying

4 0

3 years ago

Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarte

Mice21 [21]

Answer:

The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.

Explanation:

As given,

The standard deviation of quarterly changes in the prices of a commodity = $0.65

The standard deviation of quarterly changes in a futures price on the commodity = $0.81

The coefficient of correlation between the two changes = 0.8

Now,

Optimal hedge ratio = 0.8× $\frac{0.645}{0.81}$ = 0.8×0.80 = 0.6419

⇒Optimal hedge = 0.6419 ≈ 0.642 = 64.2 %

⇒The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.

5 0

3 years ago

A merchandising business

ololo11 [35]

Answer:

Buys finished products and sells them for a profit

8 0

3 years ago

Read 2 more answers

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cas

Triss [41]

Answer:

The correct answer is $1,800,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Net working Capital = Current Assets - Current Liabilities

Where,

Current Assets = cash and marketable securities + accounts receivable + inventory

Current Assets = $400,000 + $1,200,000 + $2,100,000 = $3,700,000

And Current Liabilities = accrued wages and taxes + accounts payable + notes payable

Current Liabilities = $500,000 + $800,000 + $600,000 = $1,900,000

So, Net Working Capital = $3,700,000 - $1,900,000

= $1,800,000

8 0

3 years ago