when companies behave recklessly because they know they will be saved by a government bail-out if things go wrong, it is called a: moral hazard.
A Moral hazard is what is going on in which one party engages in a dangerous occasion realizing that it is safeguarded against the gamble and the other party will cause the expense. It emerges when both the gatherings have inadequate data about one another.
In a financial market, there is a gamble that the borrower could participate in exercises that are unfortunate according to the bank's perspective since they make him less inclined to repay a credit.
It happens when the borrower knows that another person will pay for the misstep he makes. This thus gives him the motivating force to act in a less secure manner. This monetary idea is known as a moral hazard.
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Financing with _____ requires borrowing, whereas financing with _____ requires issuing shares of stock.
Financing with debt requires borrowing, whereas financing with equity requires issuing shares of stock.
Debt financing is the process by which a business raises funds by offering investors debt instruments. Equity finance, which involves issuing stock to raise money, is the reverse of debt financing. When a company sells fixed income securities like bonds, bills, or notes, debt financing takes place.
The practice of obtaining money through the selling of shares is known as equity financing. The reason companies raise money is because they can have an immediate need to pay bills or a long-term initiative that would help them expand that needs funding. A company that sells shares effectively transfers control of the business in exchange for money.
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tock a has an expected return of 20%; stock b has an expected return of 5%. what is the expected return on a portfolio is comprised of 67% of stock a and 33% of stock b? % (keep two decimal places)
The portfolio's predicted return is 9.8%. The predicted return on stock A is 11.4 percent, but the expected return on stock B is 6.4 percent.
What is a portfolio's anticipated portfolio return?The weight of each asset is multiplied by its projected return to arrive at the expected return. The total predicted return for your portfolio can be calculated by adding the figures for each investment. Hence, the formula Expected Portfolio Return = (Asset 1 Weight x Expected Return) + (Asset 2 Weight x Expected Return).
What is the anticipated return for each of the two portfolios?Expected Return for a Two Asset Portfolio
The weighted average of the returns on individual assets in a portfolio equals the expected return of the portfolio.
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refer to the included bike safety patrol budget spreadsheet. a chart is to be created that will represent the amount that the bike patrol is spending on the purchase of their equipment. it is important for those looking at the chart to easily see what portion of the $488.74 is being spent on each type of equipment. which type of chart will best display this information?
The (E) bar graph will show the information you have submitted.
Describe a bar graph.Rectangular bars with heights or lengths proportionate to the values they represent are employed in a bar chart or bar graph to represent categorical data.A bar plot may be either horizontal or vertical.A column chart is yet another name for a vertical bar graph.In a bar graph, comparisons between different categories are displayed.The comparison classes are plotted on one axis of the graph, and the measured value is represented on the other.In certain bar graphs, the bars are clustered to display the values of several variables measured.So, a bar graph will be used to represent the data collected.
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the perfect order measures how effectively logistics serves the customer while the landed cost measures how efficiently logistics provides that service. t or f
TRUE, The ideal order assesses how successfully logistics serves the consumer, whereas the landed cost indicates how efficiently logistics offers that service.
What Is Logistics?Logistics is the total process of managing how resources are bought, stored, and transported to their eventual destination. Logistics management include finding potential distributors and suppliers and assessing their efficacy and accessibility. Logisticians are logistics managers.
"Logistics" was originally a military term referring to how military personnel obtained, stored, and moved equipment and supplies. The phrase is now frequently used in the business sector, notably by corporations in the manufacturing sector, to describe to how resources are handled and transferred through the supply chain.
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rising prices erode the value of money as a ________ and as a ________.
Rising prices erode the value of money as a medium of exchange and as a store of value.
What is inflation?It is the sustained and broad rise in the prices of goods and services in the economy of a country over time (one year, normally).
When there is an increase in the price level of the economy, the money loses value, lowering our purchasing power, and raising interest rates. Inflation can cause a slowdown in economic growth and recession in some cases.
The people most affected by inflationary processes are low-income families and older people because inflation lowers the values of pensions and wages.
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the federal government makes interest payments on __________ while you’re enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.
The Federal Government makes interest payments on your loan while you’re enrolled in school at least half-time.
What is student loan repayment?Repayment is the repayment of money previously borrowed from a moneylender. Funds are typically repaid through regular payments that include both principal and interest. Your monthly payment is 10% or 15% of your disposable income, depending on when you borrowed it, but not more than you would pay on a standard 10-year amortization schedule. You are eligible for government loan forgiveness after 20 or 25 years of payments.
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a bond currently sells for $925, has 7 years left to maturity and pays a 9% annual coupon. what is the ytm
The YTM is 10.57.
1) Calculation of Yield to Maturity (YTM)
Face Value = $1000
Coupon Amount = Face Value * Coupon Rate
= 1000 * 9%
= $90
Cash Flows through Year 1 to Year 6 = Coupon Amount = $90
Cash Flows through Year 7 = Coupon Amount + Face Value = $1090
We will be Discounting cash flows using two rates (10% and 11%) and then using interpolation to calculate YTM.
Bond Price = $925
Present Value of Cash Flows 10% (Lower Rate)
Period Cash Flow Present Value Factor [1/(1+Rate)^Period] Present Value [Cash Flow * PVF]
1 90 0.9091 [1/(1,10)^1] 81.82
2 90 0.8264 [1/(1,10)^2] 74.38
3 90 0.7513 [1/(1,10)^3] 67.62
4 90 0.6830 [1/(1,10)^4] 61.47
5 90 0.6209 [1/(1,10)^5] 55.88
6 90 0.5645 [1/(1,10)^6] 50.80
7 1,090 0.5132 [1/(1,10)^7] 559.34
Sum Total 951.32
Present Value of Cash Flows 10% (P1) = $951.32
Present Value of Cash Flows 11% (Higher Rate)
Period Cash Flow Present Value Factor [1/(1+Rate)^Period] Present Value [Cash Flow * PVF]
1 90 0.9009 81.08
2 90 0.8116 73.05
3 90 0.7312 65.81
4 90 0.6587 59.29
5 90 0.5935 53.41
6 90 0.5346 48.12
7 1,090 0.4817 525.01
Sum Total 905.76
Present Value of Cash Flows 11% (P2) = $905.76
Interpolation
YTM = Lower Rate + [{(P1 - Bond Price) / (P1 - P2)} * (Higher Rate - Lower rate)]
= 10 + [{(951.32 - 925) / (951.32 - 905.76)} * (11 - 10)]
= 10 + [{26.32/ 45.56} * 1]
= 10 + 0.57
= 10.57
So, Yield to Maturity is 10.57%
The subsequent yields are worth knowing, and you can discover them the usage of FINRA Bond statistics: Yield to maturity (YTM) is the overall hobby rate earned through an investor who buys a bond at the marketplace price and holds it until maturity.
As these fee amounts are constant, you will want to buy the bond at a lower fee to increase your income, this means that a higher YTM. alternatively, in case you buy the bond at a better charge.
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Last year, Jane spent all of her income to purchase 200 units of corn at $5 per unit. This year, she spent all of her income to purchase 180 units of corn at $6 per unit
Jane's nominal income increased this year, but her real income decreased
In the situation given above, it can be concluded that the nominal income of Jane increased during the current year, but her real income has been led with a decrease.
The real income of an individual can be referred to or considered as the total amount of earnings made by an individual during a given financial period, which is also subjected to have adjusted with the current levels of inflation in the prevailing economic conditions. Real income can either be more or less than the actual or nominal income of the individual, depending upon the change in the rates of inflation.
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marcos currently makes $72,000 per year and has been told he needs to buy a life insurance policy with an earnings multiple of twelve. how much life insurance should he purchase?
Marcos, who makes $72,000 a year, has been advised to get a life insurance policy with an earnings multiple of 12. He needs to buy $8,64,000 worth of life insurance.
The easiest way to determine how much life insurance you require is, to sum up, all of the debts you wish to pay off (such as a mortgage or income replacement), then deduct any assets your family might need.
Numerous individuals employ the "multiple of earnings" technique to determine the appropriate level of life insurance. A lady earning $60,000 a year traditionally determined that she needed coverage equal to ten times her income, or $60,000. Although this approach is straightforward, it has drawbacks if the multiples are too small.
So here is life insurance = $72,000 × 12
= $8,64,000
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laura opened a deposit account. in the first month, she made an initial deposit of $2500. she plans to contribute $225 a month after her initial deposit. the account does not pay any interest. after how many months will she have a total of $6,775? 18 months 20 months 21 months
Laura made an initial deposit of $2500 into a deposit account, and plans to contribute an additional $225 every month.The account does not pay any interest.
initial deposit =$2500
additional contribution=$225
final amount=$6775
it is like a arithmetic progression
An = a + (n – 1)d
6775 =2500+(n-1)225
4275=(n-1)225
(n-1)=4275/225
n-1=19
n=20
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total ordering and holding costs a. are relatively stable. b. are relatively stable around the economic order quantity. c. are relatively unstable around the economic order quantity. d. are unstable.
The correct Option is B. are relatively stable around the economic order quantity
To put it another way, the quantity that is ordered at once should be as such to reduce the sum. Costs associated with placing orders, getting the items, storing the goods, and interest on capital investments. The following straightforward formula can be used to obtain the economic order quantity. Around the economic order quantity, are often steady. Around the economic order quantity, total ordering and holding costs are largely consistent. In most cases, a company is better off ordering a convenient lot size that is close to the EOQ (economic order quantity) than the exact EOQ.
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the analyst inputs a function to find the number of product prices that are less than $150.00. which formula will return that result?
COUNTIF(G2:G30, "<150") is correct formula to analyse a function to find the number of product prices that are less than $150.00.
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product.
Pricing of the product is something different from its price. In simple words, pricing is the art of translating into quantitative terms the value of a product to customers at a point of time. Someone has opined that, “The key to pricing is to build value into the product and price it accordingly.”
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Complete question: The analyst inputs a function to find the number of product prices that are less than $150.00. which formula will return that result?
•COUNTIF(G2:G30, ">=150")
•COUNTIF(G2:G30, "<150")
•SUMIF(G2:G30, "<150")
•SUMIF(G2:G30, ">150")
the primary cost associated with the level production strategy is the: group of answer choices cost of holding inventory cost of hiring and firing workers cost of overtime cost of subcontracting
Cost of holding inventory is the primary cost associated with the level production strategy.
The expenses incurred for keeping products or stock in a warehouse are known as inventory holding costs. Inventory that is kept in stock is a liability that reduces profit margins and raises operating costs for firms. Inventory holding costs include rent for the facility, security fees, depreciation costs, and insurance. The main goal of keeping inventory on hand is to make sure that customer service standards can always be satisfied without endangering cash flow or running out of product.
Customers frequently stop being customers when they can't buy what they need when they need it. When a corporation employs a level approach, it implies that production will remain consistent regardless of the level of demand. This indicates that finished goods inventories in businesses that manufacture to stock.
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an identified and assessed risk of material misstatement that, in the auditors' judgment, requires special audit considerations are called
"An identified and assessed risk of material misstatement that, in the auditors' judgment, requires special audit consideration" is the definition of significant risk.
Significant risk is the probability of damage occurring in a magnitude that makes it can not be disregarded as it is. In business, the most recent significant risk are as follows:
Cyber incidents, such as IT failure and data breaches.Supply chain disruption.Changes in regulation and legislation (such as economic sanctions and government change).New technologies.Reputation and brand value loss.Natural catastrophes, such as earthquakes and storms.To prevent any risk from happening, or to keep the ability to manage if one does happen, risk management is needed as a necessary tool to deal with any potential risk.
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A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents is called: _______
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents is called electronic funds transfer (EFT).
A digital transfer of finances from one bank account to another is known as an "electronic funds transfer" (EEFT), occasionally known as a "direct deposit." These transfers are conducted without the involvement of bank workers. It's a digital sale, therefore no paper attestation is needed.
Due to its ease of use, availability, and honesty, EFT has surpassed other plutocratic transfer styles as the most popular choice. Paper checks are becoming less common as businesses increasingly use EFT because it is cheaper, faster, and requires less labor overall. One of the most appealing aspects of the EFT is its security.
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Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy?
Answer: the central goverment or the goverment
Explanation:
In a centrally planned economy the central government makes all decisions about the production and consumption of goods and services. In a market economy economic decisions
Which of the following is/are the stages of capital formation? a. crreation of savings b. effective mobilization of savings c. investment in savings d. all ofthese
All of the options are stages of capital formation
Capital formation refers to raising capital through increased savings, investments in assets and savings, and financial transactions that raise the stock of money. It includes three stages of formation: the creation of savings, effective mobilization of savings and investment in savings. The stages can be further described as -
1) Development of savings - This stage includes the Individuals' collective savings in an economy resulting in the creation of savings.
2) Effective savings mobilization: This stage includes the savings that should be correctly distributed to various goals.
3) Investment in savings: This stage includes the economy should appropriately investing savings, which will boost productivity and speed up the creation of new capital.
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during which of the four phases of analysis can you find a correlation between two variables?
Diagnostic Analysis is the phase of analysis where we can find a correlation between two variables.
The goal of diagnostic analysis is to provide an explanation for what occurred. The most abstract type of analysis is looking for correlations between various variables.
T-shirt sales revenue fell off at your clothes store. To ascertain which factor has the strongest link with t-shirt sales, a diagnostic study will examine the relationships between factors including seasonality, the location of the t-shirts inside the store, and social media involvement. You concluded that seasonality had the greatest effect in this situation.
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your home insurance policy has a $400 deductible. if a small fire causes $600 damage to your home, what amount of the claim would the insurance company pay?
The amount of claim, the Insurance company would pay is $200.
Insurance is an agreement in which the people organizing a sporting event pay a company money and they pay the costs if there are any accidents, injuries, etc.
An insurance claim is a request to the insurance company for payment after a policyholder experiences a loss. The steps to claim your insurance includes:
(a) File police report.
(b) Document the damage.
(c) Review the coverage.
(d) Contact the insurance company.
(e) Prepare for the adjuster.
(f) Review the settlement.
(g) Receive the payment and repair the damage.
It is given that the Insurance company will pay $ 200 out of the $400 policy. The rest has to be paid by the insurer.
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what is the npv of a project expected to generate $1,000 a year for 5 years assuming a discount rate of 10% and an initial outlay of $3,250?
$540.79 is the NPV of a project expected to generate $1,000 a year for 5 years assuming a discount rate of 10% and an initial outlay of $3,250.
What Is Net Present Value (NPV)?The difference between the present value of cash inflows and outflows over time is known as net present value (NPV). The profitability of a proposed investment or project is examined using NPV in capital budgeting and investment planning.
NPV is the outcome of computations that determine the current value of a future stream of payments using the appropriate discount rate. Projects that have a positive NPV are often worthwhile pursuing, but those that have a negative NPV are not.
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what would be the affect of equilinrium price and equilibirum quantity of new housing if mortgage interest rates rise and the costs fo building a house rises simultaneously
Although the market equilibrium cannot be predicted, the equilibrium price will decrease.
Why is business equilibrium important?Equilibrium is required to create a both balanced and efficient market. When a market reaches its equilibrium between price and quantity, there is no reason to depart from that point because it is balancing the supply curve and also the quantity demanded.
What is the significance of the equilibrium price?Equilibrium is required to create both an equitable and efficient market. When a market reaches its equilibrium price & quantity, there is no reason to depart from that point because it is balancing the producer surplus as well as the quantity demanded.
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Receiving an email that says you have changed your bank account password when you have not is:
A. likely a warning sign of fraud, but the email should be opened to be certain.
B. not likely a warning sign of fraud, but the email should be deleted regardless.
C. not likely a warning sign of fraud, and the email should be opened.
D. likely a warning sign of fraud, and you should contact your bank.
Answer:
D. likely a warning sign of fraud, and you should contact your bank.
Explanation:
If you have not changed your bank account's password, and you are the only one you know with access to the account, you should suspect either that your account has been compromised or that you are being scammed. Call the official number of your bank to find out (not the one on the email.)
Answer:
. likely a warning sign of fraud, and you should contact your bank.
Explanation:
when the economy is in a recession, what fiscal policy tool will be used to lessen the effects of the recession?
Expansionary fiscal policy is most appropriate when an economy is in recession and is producing below its potential GDP.
Expansionary fiscal policy is when the government increases money in the economy using financial instruments to increase spending or cut taxes - both of which have more money to invest in consumers and companies.
Expansionary fiscal policy is intended to promote growth to a healthy level of the economy, which should be done during the contractionary period. The government seeks to reduce unemployment, increase consumer demand, and stop the recession. When a bankruptcy has occurred, it is intended to end the business and prevent depression.
Two important examples include increasing government spending as well as tax cuts. These policies seek to increase aggregate demand while increasing deficits or drawing down deficits. They are employed during economic downturns or in the midst of concerns to support the recovery or head out of the economy.
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taza is: a.a retailer. b.a wholesaler. c.in the downstream of the supply chain. d.in the upstream of the supply chain
Option d is correct. Taza is in the upstream of the supply chain. The supply chain upstream is the "supply," while the downstream supply chain can be viewed as the "demand."
Supply chain management is challenging because there are numerous moving elements and complications even though the supply chain appears to be very linear. Some businesses divide the supply chain into upstream and downstream supply chains to streamline their operations.
The actions associated with the organization's suppliers—those parties who find raw materials to send to the manufacturer—are all part of the upstream supply chain. The term "downstream supply chain" describes actions taken after product manufacture, namely the act of transferring the good to the buyer.
The supply chain upstream is the "supply," while the downstream supply chain can be viewed as the "demand." To avoid lost sales, inventory shortages, or overordering, supply chain managers work to maintain a balance between demand and supply.
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the balance in accounts receivable at the beginning of the year amounted to $2,240. during the year, $7,920 of credit sales were made to customers. if the ending balance in accounts receivable amounted to $1,440, and uncollectible accounts expense amounted to $600, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement?
Amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement is $8,720
Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing. The reverse of a cash outflow is a cash inflow, which is money entering a business. Making more informed strategic decisions and maximizing the use of your limited resources requires having a solid understanding of how to compute and interpret both of these SaaS financial KPIs.
The term "cash flow from operating activities" describes the money that comes into or goes out of your company as a result of the production and sale of your goods and services, which constitute your regular business operations.
Accounts receivable(beginning) = $2,240
Credit sales = $7,920
Accounts receivable (ending) = $1,440
Bad debt expense = $600
Cash inflow from customers = Accounts receivable(beginning)+ Credit sales - Accounts receivable(ending)
= 2,240+7,920-1,440
= $8,720
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red hat systems is a small company started by two computer programmers who have come up with a medical diagnosis software program that is truly amazing. they can try to market it themselves, but there are only two of them and they have very little money for mass marketing efforts as well as no contacts in the medical field. they have heard that other companies are developing similar products. they have decided to form an alliance with united medical systems. what would seem to be the major reason for doing so?
Red hat systems decided to form an alliance with united medical systems in order to gain rapid access to the market.
What Strategies Do Companies Employ to Increase Market Share?Market share refers to a company's overall share of the market for the products and services it offers. Market share is an important business metric because it measures a company's success and profitability. It may signify a company's dominance in a certain industry or the success of its revenue-generating operations in attaining its goals. Market share may have an effect on business operations, the price of goods and services, and perhaps even the performance of the stock market. Market share growth directly correlates with revenue growth. As a result, a business might expand its operations and find prospects for greater profitability. Expansion of market share should be a top corporate priority.
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Packaged foods inc. And competitive merchants who deal in goods of the same kind imply that their products are properly packaged and labeled. This is.
Wrapped Foods Inc. and other businesses who sell comparable goods claim that their goods are properly labeled and packaged. There is an implied guarantee here.
Why is there an implied warranty?A guarantee that is deemed to be offered in the sale of goods or real estate due to the terms of the transaction is referred to as an implied warranty in common law jurisdictions. An implicit warranty is instantly taken in the sale of goods or real estate, preventing the transfer of risk to the purchaser.
Upon the purchase or sale of goods, a written or verbal implied guarantee is often recognized as being in effect.
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Question:
Packaged Foods Inc. and competitive merchants who deal in goods of the same kind imply that their products are properly packaged and labeled. This is a. an express warranty. b. puffery. c. an implied warranty. d. a warranty of title.
the _____________ is the result of eliminating middle management positions in order to shorten lines of communication within the organization?
The trend towards flatter organization is the result of eliminating middle management positions in order to shorten lines of communication within the organization.
Which communication channels are there?In order to grasp someone else's meaning, you must listen to what they are saying. To understand someone else's meaning in writing, you must read what they are saying. And to understand someone else's meaning in nonverbal cues, you must observe the person in question.
What do organizational communication channels entail?Lines of communication can include a chain of command, which mandates that staff members only address their immediate superiors in the event of comments or complaints rather than going straight to leaders farther up the org chart.
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productive inefficiency implies that group of answer choices it is possible to obtain gains in one area without losses in another. it is impossible to obtain gains in one area without losses in another. there are too many resources. there are too few resources.
Productive inefficiency implies that in option b, it is impossible to obtain gains in one area without losses in another.
Productive efficiency refers to an optimized market producing maximum output from limited resources. It is also known as production efficiency. Contrary to this, productive inefficiency refers to a market operating with underutilized labor and resources. This causes the market to have production below its capabilities.
Productive inefficiency occurs when present technology in the industrial sector is unable to increase the production of one good without causing a loss in the production of another good. For instance, during a recession, labor is typically underutilized as limited labor is hired to produce the same amount of goods. Therefore, it implies that it is impossible to gain in one area without loss in another area.
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matzinger company budgets sales of $800,000, fixed costs of $111,600, and variable costs of $496,000. what is the contribution margin ratio for matzinger company?
Matzinger company budgets sales of $800,000, fixed costs of $111,600, and variable costs of $496,000. 40% is the contribution margin ratio for matzinger company.
A corporation, often known as company, is a legal entity that stands for a group of people with a certain goal who are either natural, legal, or a combination of the two. Members of the company work together for a shared cause in order to accomplish clearly stated objectives. Companies come in many shapes, including: voluntary associations, such as nonprofit organizations, for-profit companies, banks, and programs, or educational institutions, whose goal is to make a profit. So that the company itself has limited liability as members fulfill or fail to fulfill their obligations in accordance with the publicly stated incorporation, or published policy, a company may be established as a legal entity. It may be necessary to liquidate a firm after it closed in order to discharge any outstanding debts. A company is a "artificial person" with a common seal, perpetual succession, and a discrete legal personality that was founded by or pursuant to law. Companies are unaffected by the death, insanity, or insolvency of a specific member, with the exception of some senior positions.
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