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What are the four areas of finance? Give an example of a financial activity that would fall into each area. ▼ Corporate Finance

chubhunter [2.5K]

Answer:

The correct answer is:

Corporate Finance
Investments
Financial Institutions
International Finance

Explanation:

Corporate finances are those that are related to the analysis and study of business variables that maximize shareholder value.

Corporate finance encompasses important investment decisions such as:

Remuneration of dividends,
Own or third-party financing,
The level of indebtedness and leverage,
The optimization of the risk-benefit ratio, its liquidity level,
The need for investment to develop
The evaluation of the opportunity cost of an investment, the financial model to be adopted and the repayment terms.
The efficiency of cash flows.

The first example as it can not be otherwise is the bag. Everyone who thinks about investments immediately receives the thought that if you can get a lot of money for an investment it is in the stock market. And in theory this is true. There are companies that have gone public and in a very short time have managed to increase their profits by multiplying by a lot what their investors contributed. Some of them have sold their shares and today they live on income.

A financial institution is an institution that provides financial services to its clients or members. Probably the most important financial services provided by financial institutions is to act as a financial intermediary or financial intermediaries. Most financial institutions are regulated by the government;

6 0

3 years ago

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Which is an example of E-commerce

erik [133]

Answer:

E-Commerce is the electronic version of buying a product.

Explanation:

You walk into a store and buy a pack of gum. You had a real transaction.

Where as,

You log onto Amazon and purchase a product from them. That transaction that occurs is considered e-commerce.

6 0

3 years ago

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Karen works in a department store. Her coworkers have diverse cultural backgrounds. Which statement shows that Karen understands

Gemiola [76]

A.

She values a consistent focus on knowing and completing her daily tasks.Answer:

Explanation:

4 0

2 years ago

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Which best states one effect of advertising?

Law Incorporation [45]

Answer: Consumer behavior is influenced.

Explanation:

Advertising is a marketing technique where a business pays to promote their products to a target market through advertising agencies and mass media. The aim of advertising is to influence consumers behavior positively towards a certain brand/product.

6 0

3 years ago

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Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.3 percent, a YTM of 7.3 percent, and has 18

Natali [406]

The figure for the par value of bond is wrong. The correct figure is $1000. The complete question is,

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.3 percent, a YTM of 7.3 percent, and has 18 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7.3 percent, a YTM of 9.3 percent, and also has 18 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000.

What are the prices of these bonds today?

Answer:

a)

The current price of Bond X is $1198.60

b)

The current price of Bond Y is $826.82

Explanation:

The bond's price is calculated as the sum of the present value of the annuity of interest payments by the bond and the present value of the face value of the bond that will be received at maturity. The discount rate used to calculate the present values is the market interest rate or YTM.

As both the bonds are semiannual bonds, we will use the semi annual coupon payment, the semi annual percentage of YTM and the number of semi annual periods outstanding.

For Bond X

Semi annual coupon payment = 1000 * 0.093 * 6/12 = $46.5

Number of semiannual periods till maturity = 18 * 2 = 36 periods

Semi annual YTM rate = 7.3% / 2 = 3.65%

Price of bond = 46.5 * [ (1 - (1+0.0365)^-36) / 0.0365 ] + 1000 / (1+0.0365)^36

Price of bond = $1198.6002 rounded off to $1198.60

For Bond Y

Semi annual coupon payment = 1000 * 0.073 * 6/12 = $36.5

Number of semiannual periods till maturity = 18 * 2 = 36 periods

Semi annual YTM rate = 9.3% / 2 = 4.65%

Price of bond = 36.5 * [ (1 - (1+0.0465)^-36) / 0.0465 ] + 1000 / (1+0.0465)^36

Price of bond = $826.819 rounded off to $826.82

8 0

3 years ago

This is my mom channel please subscribeI need 300 subscribe ​

This is my mom channel please subscribeI need 300 subscribe