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3 years ago

8

Morgan Stanley's wealth management unit offers to invest profits of $750,000 made by an artist on a world tour at 7% compounded

semi-annually, locking the money for three years. What will the cash out be

1 answer:

Elden [556K]3 years ago

4 0

Answer:

$171,941

Explanation:

Cash out = $921,941. 2. Interest earned by the investment = $171,941.

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A 28-year-old single investor has funds saved at a bank. He contacts an RR and wants to begin allocating funds to a retirement a

Contact [7]

Answer: a. 80% stocks, 20% bonds

Explanation:

Stocks are a better fit for young people for 2 reasons;

1. Younger people are usually more risk tolerant. This means that they can pick financial vehicles that are more reflective of this risk taking mentality such as Stocks.

2. As they are far from retirement, their main goal should be saving for retirement. Stocks offer a better chance as Capital Appreciation so that their investments will grow before they retire leaving them in a better position when they do.

Fixed income is more for the older generation so that they may be sure of stable income while they are in retirement.

At the same time, every portfolio should be diversified to avoid risk so 20% going to bonds is ideal.

6 0

3 years ago

On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 330,000 rubles in four mon

Yuliya22 [10]

Solution:

Date Account tides Debit (S in ruble) Credit (S in ruble)

and Explanation

Oct 1 Accounts receivable 96,600

Sales

( 210,000 ruble x $0.46) 96,600

Dec 31 Accounts receivable

( 50.49-50.46) x (210,000 ruble) 6,300

Foreign Exchange gain 6,300

Loss on forward contract 2079,21

Forward Contract

(50.52-50.51) x 210,000 ruble =2,100

2,100 x 0.9901= $2079.21 2079.21

Jan31 Accounts receivable (LC U) 4,200

Foreign exchange gain

(50.51-50.49) x 210,000 ruble 4200

Foreign currency 107,100

Accounts receivable

(596.600-56,300-54,200) 107,100

Cash 107,100

Foreign cuuency (LCU)

($0.51 x210.000 ruble) 107,100

6 0

3 years ago

If you sold 17 units this week out of 153 units in inventory what percent of your inventory did you sell?

storchak [24]

Answer:

26%

Explanation:

5 0

4 years ago

During its first year of operations, Cupola Fan Corporation issued 43,000 of $1 par Class B shares for $450,000 on June 30, 2018

jasenka [17]

Answer:

cash 447,200 debit

common stock 43,000 credit

additional paid-in 404,200 credit

-- to record issuance of stocks --

dividends 94,600 debit

dividends payable 94,600 credit

-- to reocrd declaration of dividends --

dividends payable 94,600 debits

cash 94,600 credits

-- to record payment of cash dividends--

Explanation:

issuance of share:

43,000 x 1 = 43,000 common stock

cash procced 447,200 (450,000 - 2,800 flotation cost)

addition paid in 404,200 (difference between common stokc and procceds

dividends entries

dividends: 43,000 x 2.2 = 94,600 dividends

when declaringwe use a payable account

at payment date we write-off the payable and decrease cash.

4 0

4 years ago

The spot price of silver is $25 per ounce. The storage costs are $0.24 per ounce per year payable quarterly in advance. Assuming

rewona [7]

Answer:

The future price of Silver is $26.14

Explanation:

First we compute Total storage costs(Tsc) in the future given by the equation:

T<em>sc</em> = (S<em>c</em>/4) * [ 1 + exp(-rT<em>1</em>) + exp(-rT<em>2</em>) ]

where Sc is the storage cost today

where r is the rate

S<em>c</em> = $0.24

T<em>1</em> = 3/12

T<em>2</em> = 6/12

r = 5%=5/100

= 0.05

Tsc = (0.24/4) [ 1 + exp(0.05*3/12) + exp(0.05*6/12) ]

Tsc = 0.06 [ 1 + exp(-0.05×0.25) + exp(-0.05×0.5) ]

Tsc = 0.178

The future price( Fv) is given by:

Fv = (Sp+ Tsc) *exp(rt)

where Sp is the spot price of silver

where r is the interest rate

where t is the delivery time ratio (9 months compared to 12 months)

Sp = $25

r = 5%

= 5/100=0.05

t = 9/12

=0.75

Fv = (25. 000+0. 178) * e xp(0. 05×0 .75 )

Fv = $26. 14

4 0

3 years ago