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3 years ago

Write a reflection about your learning in this unit. Your reflection should be at

1 answer:

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It should be noted that money can be used as a medium of exchange, store of value, standard for deferred payment, and a unit of account.

The attributes of financial assets include liquidity, risk, and the rate of return. It should be noted that financial institutions affect us.

Banks are related to our daily lives. Businesses also rely on financial institutions to make transactions

The United States banking system was stabilized due to the creation of a single national currency. Also, the adoption of a gold standard system was another factor.

Learn more about banks on:

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Shaila wants to add new tabs to her PowerPoint. She selects New Tab and renames it. She then starts adding the terms Bring Forwa

m_a_m_a [10]

I think the answer is D, but I may be wrong. The reason why is Shaila needs PowerPoint to check her grades to ease all the work.She may just add it into the main tabs.

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3 years ago

Read 2 more answers

You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to

sergiy2304 [10]

Answer:

You will invest $18,000 in Stock F.

Explanation:

This can be calculated using the portfolio return formula as follows:

PR = (wD * rD) + (wF * rF) + (wR * rR) ............................ (1)

Where;

PR = Portfolio expected return = 10.7%, or 0.107

wD = Weight of the amount invested in Stock D = Amount invested in Stock D / Total amount invested = $50,000 / $100,000 = 0.50

rD = Expected Return from Stock D = 14.2%, or 0.142

wF = Weight of the amount invested in Stock F = Amount invested in Stock F / Total amount invested = ?

rF = Expected Return from StocK F = 10.1%, or 0.101

wR = Weight of the amount invested in risk free = 1 - wD - wF = 1 - 0.50 - wF = 0.50 - wF

rR = Expected Return from Risk free = 5.6%, or 0.056

Substitute all the values into equation (1), we have:

0.107 = (0.50 * 0.142) + (wF * 0.101) + ((0.50 - wF) * 0.056)

0.107 = 0.071 + (wF * 0.101) + ((0.50 * 0.056) - (wF * 0.056))

0.107 - 0.071 = (wF * 0.101) + 0.028 - (wF * 0.056)

0.036 - 0.028 = (wF * 0.101) - (wF * 0.056)

0.008 = wF(0.101 - 0.056)

0.008 = wF0.045

wF = 0.008 / 0.045

wF = 0.18

Since,

wF = Amount invested in Stock F / Total amount invested

We then substitute and solve for Amount invested in Stock F as follows:

0.18 = Amount invested in Stock F / $100,000

Amount invested in Stock F = 0.18 * $100,000 = $18,000

Therefore, you will invest $18,000 in Stock F.

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3 years ago

Careco Company and Audaco Inc are identical in size and capital structure. However, the riskiness of their assets and cash flows

LenKa [72]

Answer:

E) if the firm evaluates these projects and all other projects at the new overall corporate wacc, it will probably become riskier over time.

Explanation:

Before the merger, Audaco would have rejected any project with an IRR of less than 12% (more risky investments) while Careco only required a 10% IRR (less risky projects). But after the merger the combined WACC will be lower than Audaco's, but higher than Careco's. Therefore, the new merged company will start accepting more risky projects and that tendency will continue over time. Eventually, the company's WACC will have to adjust and increase, and the cycle will continue.

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3 years ago

Yani just graduated from college and moved back to his hometown in Connecticut. He is offered a job at the large insurance firm

user100 [1]

Answer:

With Yani's counter-wage offer, the insurance firm will likely reject his counter-offer and, in the extreme, withdraw the employment proposal with the firm.

Explanation:

As indicated in the question, the insurance company is a monopsony. A monopsony is the single buyer in the marketplace. This means that there is no other firm that can employ Yani in his Connecticut hometown. He must look for another job in another environment outside his hometown or condescend to accept the lower than hoped-for salary by the large insurance firm.

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3 years ago

Hicks health clubs, inc., expects to generate an annual ebit of $505,000 and needs to obtain financing for $1,080,000 of assets.

STatiana [176]

they were rich in resources and thinly settled

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3 years ago