Anyone can help just pick

when the federal open market committee (fomc) directs that treasury securities be sold in the open market, this a) decreases the

RideAnS [48]

When the Federal Open Market Committee allows treasury securities to be sold in the open market, the result is a) decreases the money supply.

<h3 /><h3>What happens when treasury securities are sold?</h3>

When treasury securities are sold by the FOMC of the Federal Reserve, people will buy those securities which means that the Federal Reserve gets that money.

As a result, the money supply in the economy will decrease as the amount of money in the economy will be reduced by the amount that went to the Fed.

In conclusion, when treasury securities are sold on the open market, this decreases the money supply.

Find out more on open market operations at brainly.com/question/14256204

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3 0

1 year ago

A disadvantage of extending credit to customers is that the cost may ______ the additional sales revenue received through credit

Ksivusya [100]

The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.

<h3>What do you mean by extending credit to customers?</h3>

The method of extending credit to customers permits them to buy items and services and pay for them later on. Offering credit is usually a win-win for each trader and buyer.

Customers have greater buying strength and have a tendency to shop for greater in the event that they are not restrained to the cash they have got at the time of the sale.

The missing information from the above question is given below:

increase

be less than

exceed

Thus, The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.

Learn more about extending credit:

brainly.com/question/22224988

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7 0

2 years ago

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year

lina2011 [118]

Answer:

15%

Explanation:

The computation of the internal rate of return is shown below:

Given that

Year Cash Flow

0 -$27,100

1 $11,100

2 $14,100

3 $10,100

The formula to compute IRR is

= IRR()

After applying the above formula, the internal rate of return is 15%

4 0

4 years ago

Rollins Corporation is estimating its WACC. Its target capital structure is 20% debt, 20% preferred stock, and 60% common equity

katrin2010 [14]

Answer:

A. What is the company's cost of preferred equity?

8.42%

B. What is the company's cost of common equity?

11.45%

C. What is the company's WACC?

9.31%

Explanation:

20% debt ⇒ after tax cost of debt 3.76%

20% preferred stock ⇒ 8.42%

60% common equity ⇒ 11.45%

in order to determine the after tax cost of debt we must first determine the yield to maturity of debt:

approximate YTM = {37.5 +[(1,000 - 1,150.78)/40]} / [(1,000 + 1,150.78)/2] = 33.7305 / 1,075.39 = 3.3166% x 2 = 6.2732%

after tax cost of debt = 6.2732% x 0.6 = 3.76%

cost of preferred stocks = 8 / (100 x 0.95) = 8 / 95 = 8.42%

cost of equity (Re) = 2.45% + (1.8 x 5%) = 2.45% + 9% = 11.45%

WACC = (60% x 11.45%) + (20% x 8.42%) + (20% x 3.76%) = 6.87% + 1.684% + 0.752% = 9.306% = 9.31%

3 0

4 years ago

As a company owner, you are trying to grow your party supply sales by reaching new customers. You know most of your customers ar

Anton [14]

Answer:

The answer is: Customer segmentation

Explanation:

Customer segmentation happens when you divide your customers into groups whose members are similar in specific ways (in a marketing sense). Customers are usually segmented by age, gender, spending habits, geographical location, etc.

In this case the customers were segmented into two groups::

college students
midsize and small-size businesses

3 0

3 years ago