1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tresset [83]
3 years ago
13

If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline i

f the value of the underlying asset suddenly and unexpectedly fell by $10
Business
1 answer:
Ratling [72]3 years ago
5 0

Answer:

$115.20

Explanation:

Missing part is <em>"Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $4 to $6 to $8 to $10 to $12 to $14."</em>

<em />

If the underlying assets price fall by $10, then the securities value will fall by a ratio of $10

Value of securities = $128/$10 = $12.80

Decline in value of securities = $128 - $12.80 = $115.20. Thus, the Decline in value of the financial securities is $115.20

You might be interested in
Among foragers the status of women declines when they provide most of the food. men and women are equal; there is no gender ineq
Yuki888 [10]

Answer:

Whats the question??

Explanation:

3 0
3 years ago
Which of the following is an advantage of being an entrepreneur in the consumer service industry?
andrew11 [14]

C is the answer for this question....

7 0
3 years ago
Read 2 more answers
Tyrone Northrup pays monthly rent of $1,240 for a one-bedroom apartment in a large city. He pays an extra monthly charge of $160
Leona [35]

Answer:

$18,910.00

Explanation:

Monthly rent $1240

Extra monthly charge $160

Electricity $90

Other utilities $860 per year

Insurance $170 per year

The monthly rent per year will be

=$1240 x 12

=$14,880

Parking charges per year

=$160 x 12

=$1,920

Electricity charges per year

=$90 x 12

=$1,080

Other utilities per year

=$860

Insurance per year

=$170

The annual cost will be

=$14,880 + $1,920 + $1,080 + $860 + $170

=$18,910.00

8 0
3 years ago
if the company chooses the lease option, it will have to pay an immediate deposit of 25000 to cover any future damages to the eq
Likurg_2 [28]

Answer:

The answer is "68,788".

Explanation:

Net cash flow present value = immediate deposit + Annual lease payment present value

= 25000+(18000\times 2.991)-25000\times 0.402

Net cash flow present value = 78838-10050 = 68788

8 0
3 years ago
During the current year, Walter invests $35,000 in each of two separate corporations. Each investment gives him a 20% ownership
Bond [772]

Answer:

B) Only statement II is correct.

  • II. Has $20,000 of taxable income from Corporation Z.

Explanation:

One of the disadvantages of a C Corporation is that their owners (stockholders) are double taxed. That means that the corporation is taxed and then the stockholders are taxed depending on the dividends that they receive. In this case, Walter has $10,000 of taxable income from Corporation X (= $50,000 x 20%).

On the other hand, sole proprietorships, partnerships, limited liability companies and S Corporations are not taxed, they are pass through entities whose owners are taxed directly. In this case, Walter owns 20% of Corporation Z, therefore he must pay taxes on 20% of taxable income = $100,000 x 20% = $20,000.

8 0
3 years ago
Other questions:
  • 1. Assume that Walmart can borrow at yield of 5% in USD (5-year, zero coupon debt, issued in the US), before issuance costs. Alt
    7·1 answer
  • Asking "Who would buy my product?" in a survey is an example of what?
    15·2 answers
  • Levi had an unexpected surprise when he returned home this morning. he found that a chemical spill from a local manufacturer has
    12·1 answer
  • Indentures usually bound indentured servants for periods of from five to seven years. question 3 options:
    12·1 answer
  • Jhkhkjhkjhkjhkjhhjhkjhkjhkjhkhkjhkjhkjhjk
    5·1 answer
  • The Atlantic Division of Stark Productions Company reported the following results for 2019:
    11·1 answer
  • 3 Points
    14·2 answers
  • When creating a budget, you should use...
    7·1 answer
  • Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,
    7·1 answer
  • Kevin decided that he wanted to buy a $32,000 new car. He paid $1,000 for a down payment
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!