Prior to the existence of the secondary market, mortgage terms were often (A) High interest rate fixed-rate mortgages.
In the absence of a secondary market, lenders faced increased risk when issuing mortgages. As a result, they often offered high interest rates to compensate for the potential losses and uncertainties associated with holding onto the mortgage loans until maturity. These high interest rates provided lenders with a greater return on their investment and helped offset the risks involved in lending long-term.
Fixed-rate mortgages were also common during this period. With a fixed-rate mortgage, the interest rate remains constant throughout the life of the loan, providing borrowers with predictability and stability in their mortgage payments. This structure allowed lenders to assess and price the risk associated with the loan upfront, considering factors such as the borrower's creditworthiness and the prevailing interest rate environment.
The development of the secondary market, including the creation of mortgage-backed securities, has had a significant impact on the mortgage industry. It has allowed lenders to sell their mortgages to investors, reducing their exposure to interest rate risk and providing them with liquidity to issue new loans. This, in turn, has facilitated the availability of more diverse mortgage products and increased competition among lenders, leading to greater affordability and options for borrowers.
for more such questions on market
https://brainly.com/question/25309906
#SPJ8
Christine O'Brien, who is self-employed, wants to invest $40,000 in a pension plan. One investment offers 7% compounded quarterly. Another offers 6.75% compounded continuously. a. Which investment will earn the most interest in 6 years? b. How much more will the better plan earn? c. What is the effective rate in each case?
The effective interest rate for Investment A is 7.25% and that for Investment B is 7.01%.
Given that Christine O'Brien, a self-employed individual wants to invest $40,000 in a pension plan and she is given two investment options.
Option 1: Investment A offers 7% compounded quarterly.
Option 2: Investment B offers 6.75% compounded continuously. The first step to solve the given problem is to use the formula to calculate the amount (A) at the end of the sixth year for both the investment options.
The formula for compounding quarterly is given as: A = P(1 + r/n)^(n*t) where, P = Principal amount invested r = rate of interest n = number of times compounded per year t = time in years The formula for continuously compounding interest is given as: A = Pe^(rt) where, e = the mathematical constant which is approximately equal to 2.7183 Calculating the Amount (A) at the end of sixth year Investment A: P = $40,000r = 7%/4 (As it is compounded quarterly) n = 4t = 6 years Using the formula we get: A = 40000(1+0.0175)^24 = $59,149.89 Investment B: P = $40,000r = 6.75%/1 (As it is compounded continuously)t = 6 years Using the formula we get: A = 40000e^(0.0675×6) = $58,720.60.
So, Investment A will earn more interest in 6 years. To calculate how much more will the better plan earn we subtract the amount invested in Investment B from the amount invested in Investment A: $59,149.89 - $58,720.60 = $429.29. Hence, Investment A earns $429.29 more than Investment B.
Effective Rate of Interest The effective annual interest rate is the total interest percentage obtained over a year.
It is calculated using the formula given as: Effective rate = (1 + r/n)^n - 1 For Investment A Effective rate = (1 + 0.07/4)^4 - 1 = 7.25% For Investment B Effective rate = e^r - 1 = e^0.0675 - 1 = 7.01%. Hence, the effective interest rate for Investment A is 7.25% and that for Investment B is 7.01%.
For more such questions on interest rate
https://brainly.com/question/29451175
#SPJ8
How should the headings of a resume be formatted so that they are clear and easy to find?
a. bold and italicized
b. capitalized and bold
c. underlined and italicized
d. capitalized and underlined
Answer:
B. capitalized and bold
Explanation:
Please mark my answer as the Brainiest!!!
Got it correct on Edge.
Read the section of the article named "Duties."
Which selection from the section shows a way that advertising managers get customers interested in a product or service?
Question 1 options:
Some advertising managers are known as account executives. They manage customer accounts.
They do research studies that help them to understand customers and what they want to buy.
The job of creating ads and making commercials is done by the creative department of the company.
Larger companies may have several advertising managers that work with them.
Answer:
they do research studies
Explanation:
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years and an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest.
Answer:
Liability will be $2,030,412
Explanation:
We need to calculate the present value of future cash flows in order to determine the liability value.
Liability to be recored = PV of $200,000 payment for 10 years at 6% + PV of $1,000,000 at the end of year 10 at 6%
As we know the payment of $200,000 for 10 years is the annuity payment.
Liability to be recored = $200,000 x ( 1 - ( 1 + 6% )^-10 /6% + ( $1,000,000 x ( 1 + 6% )^-10
Liability to be recored = $1,472,017.41 + $558,394.78 = $2,030,412.18
four descriptive terms describing possible experience a person may have
1) John has had instructors that have improved her coding skills.
2) Adam has traveled to many different parts of the world.
What do personal competencies entail in a job?Personal skills, often known as interpersonal or people skills, are a category of soft skills that deal with how a person communicates and interacts with others as well as their surroundings. It can be more difficult to master personal skills. Some of them are dependability, flexibility, problem-solving, and communication.
To submit an effective job application, you must be aware of these talents and how demonstrate that you have acquired them. Interpersonal aptitude increases approachability, likeability, and comfort. Strong interpersonal communication abilities are a quality that managers strive for when leading their teams. They give employees the impression that they can approach their managers with any issues or worries, which is crucial.
3) Joseph has worked at Apple for 15 years.
4) Mary is a good leader and has a capacity for teamwork.
To learn more about skills, visit:
https://brainly.com/question/28489396
#SPJ1
The complete question is:
Create a bulleted list of four descriptive terms describing possible experience a person may have in job or business.
Discuss why some companies get to the top of industry rankings and stay there, while others do not. Provide an example of a company that got to the top of industry rankings and stayed there, and an example of a company that got to the top of the rankings but did not stay there for long.
Companies that reach and maintain the top of industry rankings do so by having a clear strategic vision, prioritizing innovation, fostering strong leadership, and cultivating a motivated workforce. An example of a company that achieved and maintained a top position is Apple Inc, and an example of a company that reached the top but did not sustain its position for long is Nokia Corporation.
Companies that reach the top of industry rankings and stay there often possess several key factors that contribute to their success. Firstly, these companies have a clear and well-defined strategic vision. They know what they want to achieve and have a solid plan in place to accomplish their goals. This enables them to make informed decisions and adapt to changes in the industry, ensuring their continued success.
Secondly, successful companies prioritize innovation and constantly strive to improve their products or services. By investing in research and development, they can stay ahead of their competitors and offer unique and high-quality offerings to customers. This continuous innovation helps to maintain its top position in the industry rankings.
Furthermore, companies that stay at the top have strong leadership and a dedicated and motivated workforce. Effective leadership sets the tone for the entire organization, fostering a culture of excellence and encouraging employees to perform at their best. These companies also invest in employee development and engagement, ensuring that their workforce is equipped with the necessary skills and knowledge to excel in their roles.
A well-known corporate enterprise Apple Inc is an example of a company that achieved and maintained a top position in industry rankings. Apple has consistently been recognized as a leading technology company, known for its innovative products such as the iPhone, iPad, and Mac computers. Their commitment to design, user experience, and cutting-edge technology has allowed them to dominate the industry and retain their top position for an extended period.
On the other hand, Nokia Corporation is an example of a company that briefly reached the top but failed to sustain its position. Nokia was once a leader in the mobile phone industry, with its products being widely popular worldwide. However, the company failed to adapt to the rise of smartphones and the shift in consumer preferences. As a result, they lost their market share to competitors such as Apple and Samsung, eventually leading to their decline and loss of their top industry ranking.
Learn more about innovation here: https://brainly.com/question/8362763
#SPJ11
Create a job application including a cover letter and a resume. Make certain you have included your work and volunteer experience, education, and "selling points." Compare your resume to the job descriptions and respond to each of the questions asked. This should be a one- to two-page response thoroughly examining each question—this will prepare you for when you do apply for a job (if you have not already).
After reviewing the functions of human resource management identified early in the lesson, answer the following questions:
Identify the person from human resources whom you might engage. If it’s a small business, who do you think would be your contact?
Assume you were hired. What would human resources do for you as an employee? Discuss what benefits HR would offer and how, you believe, this would happen if you were to be employed in this position.
In a cover letter, you introduce yourself to potential employers and request that they consider your application. The letter is brief, often 3 to 5 paragraphs long.
What is Management?Management is the art of getting things done through and with the people in formally organized groups.
An efficient resume summary uses the following structure: Professional title (if applicable) with significant work history, plus top accomplishments (preferably measurable results) + Top Knowledge, Experience, and Values (relevant to the job and industry)
Reduce the length of cover letters to three to four paragraphs, not exceeding one page. Use an active voice while maintaining a confident, commercial enterprise-like tone. Don't start too many phrases with "I." Check for repetition and errors by reading your cover letter out loud.
Therefore, This is how you can create a job application including a cover letter and a resume.
Learn more about Management, here;
https://brainly.com/question/14523862
#SPJ1
Threadless (Strategy Highlight 5.2.) is a community-centered online apparel store that leverages user-generated content. The idea is to turn consumers into prosumers, a hybrid between producers and consumers. Members of the Threadless community do most of the work, which they consider fun: They submit T-shirt designs online, and community members vote on which designs they like best. The designs receiving the most votes are put in production, printed, and sold online. It can be said that Threadless uses the _____ technique.
Answer: Crowdsourcing Technique
Explanation:
The crowdsourcing technique is a technique that seeks information, opinions and ideas from a group of people who belong to a particular target market.
Like the name implies, it is usually done by engaging a “crowd” to source for ideas, and information for a particular project or goal.
Crowdsourcing aims to reduce cost while gaining insight into the intelligence and creativity of the target market.
Like the Threadless community, the target market may be unaware of the work they are putting in but they get the desired product at the end so they see crowdsourcing as fun and satisfying.
under current us gaap, firms may account for an investment in an equity security using any of the following three approaches: held-to-maturity (htm), available-for-sale (afs), or trading.
Under current US GAAP (Generally Accepted Accounting Principles), firms may account for an investment in an equity security using any of the following three approaches: held-to-maturity (HTM), available-for-sale (AFS), or trading.
1. Held-to-Maturity (HTM): With the HTM approach, firms account for equity securities that they have the intent and ability to hold until maturity. These securities are reported at amortized cost on the balance sheet, with any unrealized gains or losses unrecognized.
2. Available-for-Sale (AFS): Under the AFS approach, equity securities that are not classified as HTM or trading securities are accounted for. These securities are reported at fair value on the balance sheet, with unrealized gains or losses recorded as a separate component of shareholders' equity until realized.
3. Trading: Equity securities classified as trading are those bought and held principally for the purpose of selling them in the near term. They are reported at fair value on the balance sheet, with unrealized gains or losses recognized in the income statement.
Each approach has specific criteria and reporting requirements, and firms must carefully consider the nature of the investment and their intentions in order to determine the appropriate accounting treatment.
Under US GAAP, firms have the flexibility to account for investments in equity securities using the held-to-maturity, available-for-sale, or trading approaches. The choice of approach depends on the firm's intent and the nature of the investment.
Learn more about Held-to-maturity, vitsit:
brainly.com/question/14805952
#SPJ11
What is the author's main claim or argument?
Pizza is the best
Imagine you got into an auto accident which was your fault and you have 15/30/5 insurance. You did $5,000 damage to the other car, and broke a computer in the other car's trunk worth
$2,000.
There were 3 people in the other car and their medical bills were $12,000
each. The father in the other car also was out of work for a month costing the family $6,000.
In total, you are sued for $49,000.
How much money will the insurance company pay toward the amount you were sued for in this accident?
Answer:
The insurance company will pay up to a maximum of $25,000 for this accident. This is determined by the limits of the insurance policy, which is 15/30/5. This means that the insurance company will pay up to $15,000 for bodily injury per person ($15,000 x 3 people = $45,000) and up to $30,000 for bodily injury per accident ($30,000). They will also pay up to $5,000 for property damage ($5,000). Therefore, the total amount the insurance company will pay is $15,000 + $30,000 + $5,000 = $50,000. Since the total amount sued for is $49,000, the insurance company will pay the full amount of $49,000.
Explanation:
The insurance provider will cover this accident for a maximum of $25,000. The insurance policy's 15/30/5 limits serve as the basis for this decision. This indicates that the insurance provider will cover bodily injury claims up to the amount of $15,000 per person
What is the insurance?Insurance is a tool for risk management. You purchase protection against unforeseen financial losses when you purchase insurance. If something unpleasant happens to you, the insurance company pays you or someone else of your choosing. If an accident occurs and you don't have insurance, you can be liable for all associated expenses.
($15,000 x 3 people = $45,000) and $30,000 per accident ($30,000). Additionally, they will cover property damage up to $5,000 ($5,000). As a result, the insurance provider will cover a total of $50,000 ($15,000 + $30,000 + $5,000). The insurance provider will cover the full $49,000 since the total amount claimed in the lawsuit is $49,000.
Therefore, The insurance company will pay up to $25,000 toward this accident's expenses.
Learn more about the insurance here:
https://brainly.com/question/28357806
#SPJ2
what are the important features of utility?
Answer:
Utility is the want-satisfying power of a commodity. It is the satisfaction, actual or expected, obtained from the consumption of a commodity. Characteristics of Utility are: Utility is psychological: It depends on the mental attitude and assessment of the person consuming the commodity and also his likes and dislikes.
Page 576 14.3. Recent Changes in Capitalism This animation explores different reasons why people work long hours even when their professional or financial situation would enable them to dial back. A key concept in this context is that of the opportunity cost of leisure. How is this concept best explained
Answer:
The summary including its perceived task is demonstrated in the following segment on the interpretation.
Explanation:
The further you pay, then you pass up to make a change from generating income. This would be called opportunity cost since taking a short break is losing the chance to go somewhere else (i.e. gain further extra cash).This is much less the continuation of something like a withheld opportunity than that of the recovery on the alternative you picked.Kate likes to draw and is quite good at it. She's also enjoyed photography classes and has a good eye. While she loves her artwork, she is looking for a stable career option. Which career should she choose and why?
Answer:
food
Explanation:
because
Answer:
peeee
Explanation:
peeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
a financial exchange will need to occur. Evaluate each of the following types of financial exchanges and recommend the best option for the exchange.
(a) Cash
(b) Credit
(c) Debit
(d) Electronic Funds Transfer (EFT)
Financial exchange can be of different types however the best option for exchange is A. Cash.
What is Credit?Credit is the type of transfer of financial assets, this transfer includes financial institutions in this type the funds are transferred.
Debit
An exchange type is debit which is the transfer of financial liabilities in return of a consideration, One party transfer a good or service and instead of payment the party which transferred goods also transfers some liabilities.
Electronic Funds Transfer (EFT) is the exchange which is completely online and transfer is made through financial institutions, this transfer is quick.
Cash is the most preferred mode of exchange and therefore this is considered as the best option. Cash is paid in hand, it has the lowest risk of false transfer.
Learn more about Credit at https://brainly.com/question/27245860
#SPJ1
Which type of borrowing option would most likely result in the borrower
paying the highest amount of interest?
A. A card with a high compound interest rate
OB. A card with a low simple interest rate
ООО O
C. A card with a low compound interest rate
D. A card with a high simple interest rate
Answer:
A. A card with a high compound interest rate
Explanation:
it is most likely to result in the borrower
Charging different prices to different buyers for goods of like grade and quality is known as ______. Multiple choice question. price discrimination predatory pricing price fixing deceptive pricing
Charging different prices to different buyers for goods of like grade and quality is known as price discrimination.
Price discrimination occurs when a seller charges different prices for the same product or service based on the characteristics of the buyer, such as their willingness to pay, location, or age. Price discrimination can be used to increase profits by capturing more of the consumer surplus, which is the difference between the maximum price a consumer is willing to pay and the price they actually pay.
There are three types of price discrimination: first-degree, second-degree, and third-degree. First-degree price discrimination involves charging each buyer their maximum willingness to pay, while second-degree discrimination involves charging different prices based on the quantity purchased. Third-degree price discrimination involves charging different prices based on demographic characteristics, such as age or income. Price discrimination is legal in most countries as long as it does not result in anticompetitive behavior or violate laws against discrimination.
To read more about Price Discrimination click here
https://brainly.com/question/15727380
#SPJ11
George Kyparisis (using data from Problem 1.5) determines his costs to be as follows: ◆ Labor: $10 per hour ◆ Resin: $5 per pound ◆ Capital expense: 1% per month of investment Energy: $0.50 per BTU Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator. PX 1.7 Hokey Min's Kleen Karpet cleaned 65 rugs in October, consuming the following resources: Labor: 520 hours at $13 per hour Solvent: 100 gallons at $5 per gallon 20 days at $50 per day Machine rental: a) What is the labor productivity per dollar? b) What is the multifactor productivity?
Part 1: Percentage change in multifactor productivity = - 4.82%.
Part 2: a) Labor productivity : 0.0096 rugs per dollar
b) Multifactor productivity 0.0087 rugs per dollar
Part 1: George Kyparisis
Determining the cost of George Kyparisis (using data from Problem 1.5), we have:
Labor: $10 per hour
Resin: $5 per pound
Capital expense: 1% per month of investment
Energy: $0.50 per BTU
The percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator can be calculated as follows:
The multifactor productivity index for this year = Output (units)/Labor + Material + Energy + Capital
The multifactor productivity index for last year = Output (units)/Labor + Material + Energy + Capital
Percentage change in multifactor productivity = (Multifactor productivity index for this year - Multifactor productivity index for last year)/Multifactor productivity index for last year X 100
Given that,
Last year: Labor: 1000 hours
Resin: 500 pounds Energy:
1250
BTUs Capital investment: $4000
This year:
Labor: 1300 hours
Resin: 600 pounds
Energy: 1450
BTUs Capital investment: $4500
Suppose, output in both cases is 50 units.
Using the formula, we get the multifactor productivity index for last year:
MfP (last year) = Output/Labor + Material + Energy + Capital
= 50/(1000 x 10 + 500 x 5 + 1250 x 0.5 + 4000 x 0.01/12)
= 50/(10000 + 2500 + 625 + 33.33)
= 0.00311
The multifactor productivity index for this year:
MfP (this year) = Output/Labor + Material + Energy + Capital
= 50/(1300 x 10 + 600 x 5 + 1450 x 0.5 + 4500 x 0.01/12)
= 50/(13000 + 3000 + 725 + 37.5)
= 0.00296
Therefore,Percentage change in multifactor productivity
= (0.00296 - 0.00311)/0.00311 X 100
= -4.82%
Part 2: Hokey Min's Kleen KarpetHokey Min's Kleen Karpet cleaned 65 rugs in October, consuming the following resources:
Labor: 520 hours at $13 per hour
Solvent: 100 gallons at $5 per gallon
20 days at $50 per dayMachine rental
a) To find the labor productivity per dollar, we can use the formula:
Labor productivity = Output/Labor cost
Labor cost = 520 x 13
= $6760
Output = 65 rugs
Labor productivity = Output/Labor cost
= 65/6760
= 0.0096 rugs per dollar
b) To find the multifactor productivity, we can use the formula:
Multifactor productivity = Output/Labor + Material + Expense cost
Material cost = 100 x 5
= $500
Expense cost = 20 x 50 + 30
= $1030 (Assuming a month has 30 days)
Multifactor productivity = Output/(Labor + Material + Expense cost)
= 65/(520 x 13 + 500 + 1030)
= 65/7450
= 0.0087 rugs per dollar
Know more about the multifactor productivity
https://brainly.com/question/14648809
#SPJ11
what will the interest rate be if the $250 of interest had been discounted at the time the loan was made? percent
The interest rate is 2.56% if the $250 of interest had been discounted at the time the loan was made.
Discounted amount = $250
Principal loan amount = $10,000,
The term of the loan = 1 year.
Calculating the interest rate of the $250, using the simple interest formula for discounting:
\(I = PRT\)
Calculating the amount that the borrower received -
= ($10,000 - $250)
= $9,750
Therefore, substituting the values -
\(250 = 9,750 x r x 1\)
r = 250 / 9,750
r = 0.0256
r = 2.56%
Read more about the interest rate on:
brainly.com/question/13324776
#SPJ4
some accrued liabilities, such as sales taxes and commissions, are incurred at the point of sale and must be recognized in the same period as those sales are made.
T/F
Accrued liabilities, such as sales taxes and commissions, are incurred at the point of sale and must be recognized in the same period as those sales are made. It is True.
Accrued liabilities are expenses that have been incurred but not yet paid. Sales taxes and commissions are examples of accrued liabilities that are recognized in the same period as the sales are made, in accordance with the matching principle of accounting. This principle states that expenses should be recognized in the same period as the revenue they helped to generate, in order to accurately reflect the financial performance of the business. By recognizing these accrued liabilities at the point of sale, the business can ensure that its financial statements are accurate and reflect the true costs associated with generating revenue.
This is because these liabilities represent amounts owed for goods or services provided, and recognizing them in the same period ensures accurate financial reporting. By matching the expenses with the related revenues, the accrual accounting method provides a clearer picture of a company's financial performance during a specific period. Therefore, it is essential to record these accrued liabilities concurrently with the associated sales transactions.
To know more about liabilities visit:
https://brainly.com/question/28391469
#SPJ11
mr. and mrs. williams hope to send their son to college in fourteen years. how much money should they invest now at an interest rate of 9.5% per year, compounded continuously, in order to be able to contribute $8500 to his education?
Answer:
$11305
Explanation:
Formula; Principal x Rate x Time
P; 8500 R; 9.5% T; 14
Equation; 8500 x 9.5% x 14
Final Answer; 8500 x 9.5% x 14 = $11305
explain briefly why different stocks may have different p/e (price/earnings) ratios. in particular, for example, what factors explain why a firm might have a high p/e ratio?
The P/E ratio of a stock will be high if earnings are anticipated to be high in comparison to existing earnings. An 8 P/E ratio is considered to be low.
The price of the stock will increase if big earnings are anticipated, as was the case with the Galt Company. As a result, the P/E ratio will be high since the price will increase while the earnings do not. To determine whether there is a difference (in either direction) between the mean P/E ratio of all socially conscious stocks and the mean P/E ratio of the S&P Stock Index, we must test our hypothesis (19.4). "Enables the comparison of group means. One of the most widely used tests, it is used to assess whether the mean is (greater, lower, or not equal) to a given value ". We can conclude that we have enough evidence to FAIL to reject the null hypothesis if we compare the p-value with the significance threshold provided.
Learn more about P/E ratio here:
https://brainly.com/question/27853014
#SPJ4
Sometimes a liquid can be sitting there and its molecules will become a gas. That’s called
___________________________________________.
Answer:
Una vez que toda la sustancia está en estado líquido, al continuar calentando vuelve a subir la temperatura y llega un momento en que las fuerzas intermoleculares ya son incapaces de mantener juntas las moléculas del líquido, por lo que éste hierve y se convierte en un gas, se produce la ebullición.
What is the difference between using an action button to play an audio file via 'play sound' and an audio clip set up through the Media Group?
Answer: The action button lets users play the audio file, the sound button will play an audio clip.
Explanation:
The action button lets users play the audio file once it is clicked or has a mouse over action over the assignment button. The sound button will play an audio clip that you have specified in the action settings dialog box.
scarcity is an economic problem with which all societies are faced.
true or false
Scarcity, which deals with how people satisfy their limitless wants and needs with scarce resources, is one of the key concepts in economics.
Was Limitless cancelled?
Critics had mixed opinions to Limitless when it made its CBS debut on September 22, 2015. The sitcom was canceled by CBS after a single 22-episode season that finished on April 26, 2016. Showrunner Craig Sweeny made the announcement. After over four years after on US Netflix, the brief Limitless, a CBS crime drama, will soon end its run. Here's why it's quitting, where it's probably going, and why it only lasted one season.
To know more about resources visit:
https://brainly.com/question/28605667
#SPJ4
Outstanding stock of the Whispering Winds Corp. included 39000 shares of $5 par common stock and 13000 shares of 5%, $10 par non-cumulative preferred stock. In 2019, Whispering declared and paid dividends of $3900. In 2020, Whispering declared and paid dividends of $11700. How much of the 2020 dividend was distributed to preferred shareholders
Answer:
$6,500
Explanation:
39,000 shares of $5 par common stock
13,000 shares of $10 par 5% non-cumulative preferred stock = $6,500 in preferred stocks dividends per year. Since the preferred stocks are non-cumulative, if they are not paid during one period, that dividend cannot be recovered in future periods.
In 2020, $11,700 were paid in dividends:
$6,500 were paid to preferred stocks$5,200 were paid to common stocksDowntown Bank provides lockbox services. They estimate that you can reduce your average mail time by 1. 6 days and your combined clearing and processing time by. 5 days by implementing their system. Your firm receives 654 checks a day with an average value of $975 each. The current T-Bill rate is. 009 percent per day. Assume a 365-day year. The bank will charge your firm $. 17 per check. What is the net present value from installing this system?
The net present value (NPV) from installing the lockbox system can be calculated by subtracting the initial investment and ongoing costs from the present value of the cash flows generated by the time savings and service charges.
To calculate the NPV, we need to consider the following factors:
Time savings: The lockbox system reduces the average mail time by 1.6 days and the combined clearing and processing time by 0.5 days. Multiply these time savings by the number of checks received per day (654) to calculate the annual time savings.
Cash flows: The cash flows are generated from the time savings and the service charges imposed by the bank. Calculate the annual cash flows by multiplying the time savings by the average value of each check and the T-Bill rate (0.009%) per day. Add the annual service charges based on the number of checks received.
Present value: Calculate the present value of the annual cash flows by discounting them at the T-Bill rate. This accounts for the time value of money.
NPV calculation: Subtract the initial investment and ongoing costs from the present value of the cash flows to obtain the NPV.
To provide an accurate NPV calculation, specific values for the initial investment, ongoing costs, and the duration of the investment would be required. Without this information, a precise NPV cannot be determined.
Learn more about net present value here:
https://brainly.com/question/32261910
#SPJ11
customers should not expect a company to keep their information confidential true or false
Answer:
False
Explanation:
sorry if this is wrong
Assume that the next morning, the bond credit rating changes to A-/A-, and the new yield to maturity becomes 8.2%. What is the price of the bond after this change?
[From the prior problem: Calculate the price of the following corporate bond with a credit rating of BBB+ / Baa+: $1000 par value, 8% semi-annual pay coupon, 8.40% yield to maturity, and 5 years to maturity.}
If the bond credit rating changes to A-/A-, and the new yield to maturity becomes 8.2%, then the price of the bond will be $635.21.
To calculate the price of the bond after the credit rating change, we'll use the updated yield to maturity of 8.2%. The bond details remain the same:
Par value (PV) = $1000
Coupon rate (C) = 8% (semi-annual)
Yield to maturity (YTM) = 8.2% (semi-annual)
Years to maturity (n) = 5 (semi-annual)
To calculate the price of the bond, we can use the present value of the bond's cash flows:
Price = (C / 2) * [1 - (1 / (1 + YTM/2)ⁿ] + PV / (1 + YTM/2)ⁿ
Let's calculate the price of the bond after the credit rating change:
Price = (40 / 2) * [1 - (1 / (1 + 0.082/2)¹⁰)] + 1000 / (1 + 0.082/2)¹⁰
Price = 20 * [1 - (1 / (1.041)¹⁰)] + 1000 / (1.041)¹⁰
Price = 20 * (1 - 0.598799) + 1000 / 1.593848
Price = 20 * 0.401201 + 627.19
Price = 8.02402 + 627.19
Price = $635.21402
Therefore, after the credit rating change, the price of the bond would be approximately $635.21.
To know more about credit rating, visit https://brainly.com/question/29481760
#SPJ11
what is the definition of a bond's time to maturity? multiple choice question. it is the number of years the corporation is expected to be in existence it is the number of years until the bond is sold by the bondholder it is the number of years until the face value is due to be repaid. it the period of time that has elapsed since the bond was issued
A bond's time to maturity is the number of years until the face value is paid off.
What is the time to maturity?
The duration until a bond matures determines how long the owner will continue to receive interest payments on their investment. The principal is reimbursed when the bond matures. Depending on how long they will take to mature, bonds can be divided into three general categories: short-term (one to three years), intermediate-term (four to ten years), and long-term (ten to thirty years). In general, the bond's interest rate will be greater and its price on the secondary bond market will be less volatile the closer it approaches maturity.
To learn more about time to maturity visit;
https://brainly.com/question/14746626
#SPJ4