What is capital market?

Answers

Answer 1

Answer: It's a financial market where people can buy or sell long-term debt or equity-backed securities

The example of capital markets are : New York stock Exchange, American stock exchange, London stock exchange, NASDAQ, Etc

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Melinda's job consists of greeting visitors at the front desk of an architectural firm. Sometimes she finds herself with little to do. Which of the following is NOT an appropriate use of her time?a. texting her mother at home b. preparing for the next client visit c. e-mailing her boss to ask for directions d. straightening the magazines in the lobby
What is the difference between economy and economics

What is one benefit or drawback to an hourly wage

Answers

Benefit of hourly wage.
- The more hours you work the more income you earn
However when it comes to annual pay, it is most likely that the regular paid employee earn more rather than hourly paid employee because hourly paid employee doesn't have leaves to use and no work no pay.

In Nerumbia, all businesses are owned by the state. The Nerumbian government plans production, fixes commodity price, and also gives directions on investments to ensure they benefit the nation as a whole and not only a few individuals. Nerumbia has adopted a _____ economy.a. capitalist

b. command

c. traditional

d. mixed

e. market

Answers

Answer: Command

Explanation: A command also known as planned economy is one in which all economic activities are carried out using economic policies laid down by the state. In such economy, government influence and determine the type of goods to be produced, method of production, The price of goods produced, The target market and also oversee the proceeds or income generated. The command system is mainly found in communist economy like North Korea. Command systems is aimed at achieving even or fair distribution of resources among the populates rather than being concentrated in the hands of private investors.

On April 1, Alliance Company purchased $50,000 of Tetter Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30, Alliance received its first semiannual interest. On February 1, Alliance sold $40,000 of the bonds at 103 plus accrued interest. The journal entry Alliance will record on April 1 for the purchase of the bonds will include a:____________.1. debit for Cash of $50,000
2. debit to Investments—Tetter Company Bonds for $52,000
3. debit to Investments—Tetter Company Bonds for $50,000

Answers

Answer:

Option (3) is correct.

Explanation:

Given that,

cost of purchasing Tetter Company's 12% bonds = $50,000

Accrued interest expense = $2,000

The journal entry is as follows:

On April 1,

Investments in debt securities - Tetter Company bonds A/c Dr. $50,000

Interest receivable A/c Dr. $2,000

To Cash $52,000

(To record the purchase of the bonds)

A written agreement containing the various provisions under which a partnership is to operate is known as a partnership agreement. a. True
b. False

Answers

That statement is true

This agreement usually mentioned :
- The percentage to divide earning to each partners
- Assets management
- The partner's Salary beside the divided earning
- The policy that will imposed to each partners in case of company's liquidation

The stock price of DL Inc. is $49, the security’s expected rate of return is 14%, the risk-free rate of return is 4%, and the market risk premium is 8%. What will be the security’s current price if the covariance of its rate of return with the market portfolio halves on a permanent basis but everything else remains the same?

Answers

Answer: The new stock price of DL Inc. would be $37.50 if the covariance of its rate of return with the market portfolio halves on a permanent basis but everything else remains the same.

If the covariance of the security's rate of return with the market portfolio halves on a permanent basis but everything else remains the same, the security's new beta would be half its initial beta. The beta of a security is the covariance of the security's rate of return with the market portfolio divided by the variance of the market portfolio.The CAPM formula is used to compute the expected rate of return on a security, and it is as follows: Required return = risk-free rate of return + (beta x market risk premium).

The current price of DL Inc. stock can be calculated using the CAPM formula as follows: Beta = covariance of DL Inc. with the market portfolio/variance of the market portfolio= ?/ (8 x 8) = ?/64 where beta is unknown.Covariance of DL Inc. with the market portfolio = 0.5, Covariance of DL Inc. with the market portfolio = 0.5 x Var (DL Inc.)/Var (Market) = 0.5 Covariance of DL Inc. with the market portfolio is half the original covariance.

The beta for the security = 0.5 Covariance of DL Inc. with the market portfolio = 0.5 x ?Var (DL Inc.)/Var (Market) = 0.5 (0.5 x ?Var (DL Inc.)/Var (Market)) = ?Var (DL Inc.)/ (2 x Var (Market))Required rate of return = 4% + (0.5 x 8%) = 8%.DL Inc.'s current stock price = Dividend per share/ (required rate of return - growth rate) = $3/ (8% - 0%) = $37.50.

Therefore, the new stock price of DL Inc. would be $37.50 if the covariance of its rate of return with the market portfolio halves on a permanent basis but everything else remains the same.

Know more about market portfolio here:

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In the case of Hammer v. Breidenbach, 31 Mo. 49 (1860), Mr. Breidenbach was hired to brew beer in a cave for his employer, at a salary of $1,000 per year. The contract between the Bavarian Brewery (which would later become Anheuser-Busch) and Mr. Breidenbach specified that any violation of the agreement would result in the breaching party paying the sum of $500 to the injured party. Because the cave was dangerous, Mr. Breidenbach refused to enter it to make the beer, and his employer demanded the $500. An appellate court later determined that Mr. Breidenbach should not be required to enter the cave and endanger himself, and he was not required to pay the $500 "penalty." In which of the following modern cases could this case act as an appropriate precedent?A. A case where an employee was terminated for not attending work in a "sick" mold-infested building.
B. A case where a caterer refuses to enter a condemned building to provide food to a Halloween party.
C. A case where a liquidated (pre-determined) damages payment in a contract was excessively disproportionate to the injury.
D. A case where an employer was sued for forcing employees to work in unsafe conditions.

Answers

Answer:

B. A case where a caterer refuses to enter a condemned building to provide food to a Halloween party.

Explanation:

The doctrine of legal precedent (stare decisis) is used in most common law systems as a way to provide stability and predictability to legal decisions. Under this doctrine, a legal case can set a "precedent" that creates a principle or a rule. This rule is then used in future cases that significantly resemble the previous one in terms of context and facts.

Answer:

d. A case where a liquidated (pre-determined) damages payment in a contract was excessively disproportionate to the injury.

Explanation:

Law student

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In the United States economy, few resources, goods, and services are allocated through markets.True False

6. Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara invests $2,000 per year for 10 years and then never sets aside another penny. Mary waits 10 years and then invests $2,000 per year for the next 30 years. Assuming they both earn 7%, how much will each twin have at age 67? What is the difference between how much each will have, and how do you explain the difference?