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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

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International officials and business leaders have gathered to discuss free-trade policies. Outside their summit, protesters shou
Allisa [31]
<span>Answer: D. Karl Marx's collapse of capitalism.</span>
4 0
3 years ago
Read 2 more answers
Which of the following is not an advantage of owning mutual funds? A. All of the options are advantages of mutual funds. B. They
weeeeeb [17]

(C) They treat income as 'passed through' to the investor for tax purposes.

<h3>What are mutual funds?</h3>
  • A mutual fund is an investment vehicle that is professionally managed and collects money from a number of investors to buy securities.
  • The phrase is frequently used in the US, Canada, and India, while open-ended investment companies in the UK and SICAVs in Europe are comparable global structures.
  • Mutual fund distributions, whether made in the form of cash payments or reinvested in additional shares, must be taxed if shares are held in a taxable account.
  • Following the end of each calendar year, the funds submit IRS Form 1099-DIV detailing distributions made to shareholders.
<h3>Who are investors?</h3>
  • A person who invests money does so in the hope of earning a profit or gaining an advantage in the future.
  • The majority of the time, the investor purchases some kind of property using these assigned funds.
<h3>What is tax?</h3>
  • Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.
  • A tax is a mandatory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national).
  • Around 3000–2800 BC, the first recorded taxation was enacted in ancient Egypt.

Therefore, "(C) They treat income as 'passed through' to the investor for tax purposes" is not the advantage of owning mutual funds.

Know more about mutual funds here:

brainly.com/question/4340765

#SPJ4

4 0
1 year ago
What happens if there is zero inflation and no standard cost of living?
8_murik_8 [283]
This means that money is never circulated
3 0
2 years ago
last year, cayman corporation had sales of $26 million, total variable costs of $15 million, and total fixed costs of $5,000,000
Fofino [41]

Answer:

Cayman Corporation

The increase in operating income is 27.5% (or $1.65 million).

Explanation:

a) Data and Calculations:

Sales last year =       $26 million

Total variable costs     15 million

Contribution margin  $11 million

Fixed costs                   5 million

Operating income     $6 million

Bondholders' interest 4 million

Income before tax    $2 million

Income taxes (21%)    0.42 million

Net income              $1.58 million

                                    Last Year   Increase by 15%

Sales revenue =       $26 million     $29.9 million

Total variable costs     15 million        17.25 million

Contribution margin  $11 million     $12.65 million

Fixed costs                   5 million         5.0 million

Operating income     $6 million       $7.65 million    $1.65 m or 0.275

Bondholders' interest 4 million         4.0 million

Income before tax    $2 million         3.65 million

Income taxes (21%)    0.42 million    0.7665 million

Net income              $1.58 million     2.8835 million = 82.5%

6 0
3 years ago
Based on the following data, determine the cost of merchandise sold for October. Merchandise Inventory, October 1 $ 98,560 Merch
bagirrra123 [75]

Answer:

$414,070

Explanation:

Calculation to determine the cost of merchandise sold for October

Merchandise inventory, october 1 $ 98,560

Add: Purchases $433,880

Add: Transportation in $7,620

Less: Purchase return and allowances $12,760

Less: Purchase discount $9,900

Less: Merchandise inventory, october 31 $102,330

Cost of merchandise sold $414,070

Therefore the cost of merchandise sold for October will be $414,070

4 0
2 years ago
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