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
stepladder [879]
2 years ago
11

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. Instructions: Enter your answer as a whole number. If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline if the value of the underlying asset suddenly and unexpectedly fell by $6
Business
1 answer:
iVinArrow [24]2 years ago
6 0

Answer:

$120

Explanation:

Given:

• Geometric growth rate of existing financial security:

$4 to $8 to $16 to $32 to $64 to $128

• Arithmetic growth rate of underlying assests:

$4 to $6 to $8 to $10 to $12 to $14

From the values, when the price of the underlying assests is $14, the price of the existing financial security is $128.

We are told to that when values of financial secrities increased from $4 to $128, that of underlying assests also increased from $4 to $14. If patterns hold for decreases as well as for increases. Therefore to get the value of financial securities decline if the value of underlying assests suddenly and unexpectedly fell by $6, we have:

Price of underlying assests when decreased by $6 =

$14-$6 = $8.

Therefore, price of existing financial security decline wil be:

$128-$8 = $120

You might be interested in
While building the ancient pyramids, the Egyptians performed several management functions. They submitted written requests and c
geniusboy [140]

Answer:

a, b and c i.e Organizing, Planning and Controlling

Explanation:

Note: <u>Since more than one option is to be selected, the three terms have been provided as an answer</u>

Organizing is the management function concerned with creation of organizational hierarchy, defining roles and objectives and authority and reporting responsibilities.

Planning refers to providing for unforeseen future events and deciding the ways to deal with them.

Directing refers to the management function of guiding, supervising and leading people with an objective to meet organizational goals and extract efficient performance.

In the given case, written request signifies planning, creation of a staff and consulting before arriving at decisions refers to organizing and controlling function.

4 0
3 years ago
In a 100 capitalist structure the owners are offered what advantages
Alisiya [41]

In a 100 percent capitalist structure, there are basically two advantages that the owners are offered:

1. They can make as much profit as they desire, as long as they are hardworking and the market permits it.

2. They don’t have to bother themselves about the welfare of their workers.

8 0
3 years ago
The par value or stated value of stock represents the amount of legal capital that a corporation must maintain for the protectio
ohaa [14]

Answer:

True

Explanation:

This is the value of stock or share that was set by the owners of a corporation at the point of registration of the company. It is the price that is stated in the corporation's article of association and also in the share certificate. The par value of a share has no relationship with the market value as they can be far apart.

The par value is a value specified by law for the protection of the people who might want to extend credit to the corporation.

6 0
2 years ago
Suppose a competitive firm has​ cost, C​ = ​(0.002q3​) ​+ (22q)​ + 750, marginal​ cost, MC​ = 0.006q2​ + 22, and​ revenue, R​ =
aniked [119]

Answer:

 Options B and C are correct.

  • Marginal profit is negative.
  • Profit is positive.

Explanation:

At q = 150

R = 80q = 80(150) = 12,000

C = 0.002(150)3 + 22(150) + 750 = 6750 + 3300 + 750 = 10,800

R > C so first is incorrect.

MR = 80

MC = 0.006(150 x 150) + 22 = 135 + 22 = 157

MC > MR so B is correct.

Profit = TR - TC = 80(150) - 0.002(150)3 - 22(150) - 750 = 12000 - 10800 = 1200

Profit is positive.

Marginal profit = MR - MC = 80 - 157 = - 77

MR is Negative

3 0
2 years ago
Damien McCoy has loaned money to his brother at an interest rate of 5.85 percent. He expects to receive $987, $1,012, $1,062, an
yKpoI14uk [10]

Answer:

The answer is: $3,657

Explanation:

To determine the amount of the loan we have to calculate the present value of the future payments discounting the interest rate of 5.85%.

PV loan =   <u>$987   </u>   +   <u>   $1,012   </u>    +     <u>  $1,062   </u>    +      <u>  $1,162   </u>

                  1.0585         1.0585^2            1.0585^3             1.0585^4

PV loan = $932.45 + 903.23 + 895.47 + 925.64

PV loan = $3,656.80

3 0
2 years ago
Other questions:
  • which of the following home purchasing considerations would probably affect older home buyers the least
    7·1 answer
  • Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expa
    13·2 answers
  • A comparative advantage is the ability of a country to produce a particular good or service at a lower ____________ than another
    5·1 answer
  • A company has 150 employees, each working 40 hours per week and earning $11 an hour. Although the company does not pay any healt
    10·2 answers
  • Information that is collected for the first time from original sources is called ________.
    12·1 answer
  • If Ben &amp; Jerry's sold more units of its Chocolate Chip Cookie Dough super premium ice cream to U.S. consumers as a result of
    8·1 answer
  • Planning for the possiblity that your home might get struck by lightning and catch on fire is part of a plan for _____.
    6·2 answers
  • Which of the following is not a factor in determining whether an agent is a servant or independent contractor? level of supervis
    5·1 answer
  • g reported pretax accounting income of $860 million for the current year. Depreciation reported in the tax return in excess of d
    11·1 answer
  • Sorry about the previous qn I meant clauses of a memorandum of association​
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!