Mutual fund companies perform similar functions to banks in that they are deposit-taking institutions that pay interest to their depositors. * True or False
Q: In-line with the primary objective of shareholder wealth maximization, what other objective may be i...
A: A company that can raise funds from the general public is known as a public limited company. A publi...
Q: You deposit $2000 in a risky investment that loses 3 % interest yeaçly. Unfortunately, the money is ...
A: Future Value: The future value is the amount that will be received at the end of a certain period. T...
Q: An insurance policy provides a benefit of $21,500 twenty two years from now. Alternatively, the poli...
A: Amount to received after 22 years 21,500 Payment per year is $590
Q: You have $300 and a bank is offering 5.5% interest on deposits. If you deposit the money in the bank...
A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value = $300r = rate of interest = 5.5%n = nu...
Q: For 18 years, Janet saved $250 at the beginning of every month in a fund that earned 3.5% compounded...
A: Monthly saving (S) = $250 Interest rate = 3.5% Monthly interest rate (r) = [1+0.035]1/12-1 ...
Q: compute the annual equivalent repair cost over 8 years life if type writer is warranted for three ye...
A: The annual cost method is used to find the profitability of the project by allocating an equal cost ...
Q: (A) Find the monthly payment and the total interest paid. (B) Find the unpaid balance after 8 years.
A: Monthly Mortgage Payment: It is the payment made to the lender by the borrower for taking on a mort...
Q: If Treasury bills are currently paying 6 percent and the inflation rate is 2.3 percent, what is the ...
A: Data given: Treasury bill rate = 6% Inflation rate= 2.3% Required: i) Approximate real rate ii) Ex...
Q: Determine the present value in year zero of a gradient series that begins with a cash flow of $7,000...
A: Interest rate = 8% Cash flow in year 5 = $7000 Annual increase in cash flow = 8%
Q: (Earnings before interest & taxes ∕ Net sales)
A: Operating Profit Margin: This ratio implies the ability of a firm to be profitable. Thus, it reflec...
Q: Varian wants to have $500,000 in an investment account six years from now. The account will pay 6.96...
A: Let "c "be monthly payments. Future value given = $ 500000 i = 6.96 ÷ 12 = 0.58% = 0.0058 Time = 6× ...
Q: Lender Loan products Significant features Savings and loan companies (thrifts) Mortgages They are re...
A: Consumer loan is referred as the loan, where the banks used to offer the customers for the purchase ...
Q: n of P 2,000.00 was made at 8% simple interest. How long would it take in years for the amount of th...
A: Simple interest is interest without compounding that means no interest on interest and only interest...
Q: aleulating Cash Flews. The onner of a bicycle repair sop forecasts revasues of Sls0,000 a pear. Vari...
A: Answer - Part 1 - Income Statement - Income Statement For the Period Particulars Amoun...
Q: Remember, an agency relationship can degenerate into an agency conflict when an agent acts in a mann...
A: The problem or conflict of the entity occurs as a result of conflict between two parties, principal ...
Q: sing a financial calculator yields a present value for option 2 of approximately and a present value...
A: The present value of an annuity: When a fixed amount of money is received or paid at constant interv...
Q: QUESTION #1. Answer must be in DECIMAL FORM How many YEARS is the PAYBACK PERIOD of PROJECT 1? QUEST...
A: In capital budgeting payback period is the time taken to recover the amount put in as the initial in...
Q: A dealer sold a car to Derek for $5000 down and end-of-month payments of $499 for 5.5 years, includi...
A: Down payment (DP) = $5000 Monthly payment (P) = $499 Period = 5.5 Years Number of monthly payments (...
Q: Find the missing values assuming continuously compounded interest. (Round your answers to two decima...
A: a) Initial investment (P) = $2000 r = 2.6% Let n = Time to double P
Q: Select the correct sentence describing life cycle costing (LCC) Life cycle costing tracks and a...
A: Life cycle costing is a system that tracks and accumulates the actual costs and revenues attributabl...
Q: In the picture below, Determine whether long-term or short-term financing is required Acquisition of...
A: Long term financing is when the loan term is above 10 years. Short term financing is when the loan t...
Q: Shares of stock that have been issued by the corporation at their par or issued value of the shares,...
A: The capital of a corporation is contributed by many number of persons and same is accounted in books...
Q: n investor purchased a 182-day, $100,000.00 T-bill on its issue date for $98,634.24. After holding i...
A: Treasury Bill Treasury bills are short-term, debt obligations that are backed by the Treasury depart...
Q: Tori is dining out with some friends. The restaurant 1 cannot split the bill. Tori offers to pay for...
A: Prepaid cards, like debit and credit cards, can be used to make transactions and pay expenses. Becau...
Q: How much would you have at the end of five years if you invested P50,000 at 10.5% interest rate?
A: Future Value: It is the future worth of the present sum of the amount and is computed by multiplyin...
Q: If you are to pay P 3,000.00 for a debt made 2 months ago at the rate of 7% simple interest, what am...
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a...
Q: If you borrowed P 10,000.00 from a bank with 8% interest per annum, what is the total amount to be r...
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified...
Q: 1. Discount and Net price 1. The 3rd Album of Twice (Formula of Love: O + T= <3) it sells for 15,000...
A: Selling price (P) = 15000 Trade discount (d) = 10%
Q: Using a debit card will take money directly out of this Checking Savings Both account Best for money...
A: Checking account - It is a type of bank deposit account that is meant for daily money transactions. ...
Q: Question 15, 8.2.5 E Homework: Homework 3 Part 1 of 3 An investor purchased a 182-day, $100,000.00 T...
A: The original yield on the T-bill means the annual return earned by an investor on bill if the bill i...
Q: A $43,000 new car loan is taken out with the terms 9% APR for 48 months. How much are monthly paymen...
A: A loan is an agreement where an amount is forwarded with the promise to pay it back along with some ...
Q: OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $502 million, bu...
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...
Q: Henley Corporation has bonds on the market with 14 years to maturity, a YTM of 10.1 percent, a par v...
A: The question is based on the concept of the valuation of bonds. The price of a bond is calculated as...
Q: All at par pays coupon annually at the rate of 5%. During year 1, Peanut has received dividend rom A...
A: Any investment in equity or debt by the company is initially recorded at fair value. Subsequently, t...
Q: Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner o...
A: Total market value of Almonds = 1047 tons×$101 = $105, 747 Total market value of walnuts = 791 tons×...
Q: Harmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $90,000. HPB will need ...
A: Leasing refers to a contract under which one party agrees to rent an asset owned by another party fo...
Q: Jennie want to buy a Rolls Royce Phantom car for $51,800. The contract is in the form of a 48-month ...
A: As per the given information : Car cost = $51,800 Time period = 48 months Interest rate = 9.2% Here,...
Q: In an investor’s perspective, which among these has the best potential for your money to grow, using...
A: Compound interest is referred as an interest on the calculation of the deposit or the loan on the ba...
Q: f U.S. inflation increase relative to Italy, this implies that there would be _______. A. an increas...
A: Inflation have major impact on exchange rate and demand for currency because inflation would have im...
Q: Question 6 In terms of APR, which of the following loans would cost you the most to borrow? Principa...
A: Loan is a value which is borrowed from external sources like banks and this amount is repaid in fixe...
Q: Definition/Action Which account should they use? 6 withdrawals or transfers Checking Savings Both pe...
A: A checking account is a deposit account held at a financial institution that allows withdrawals and ...
Q: Perry acquired 70% of Salt on 1/1/2009 for $420 when Salt's equity consisted of $200 capital stock a...
A: This Problem is related to Acquisition and removal of Unrealized /gain or Loss between the two compa...
Q: Consider an FI with the following off-balance-sheet items: A two-year loan commitment with a face va...
A: Credit equivalent amount is referred to as the total of all the items which falls under off-balance ...
Q: 000.Interest is 15%. a. P2750000 b. P2500000 G. P3750327
A: A capitalised cost is an item that is added to the cost base of a fixed asset on a company's balance...
Q: What portfolio of call options would you buy to get the Skinny "M" payoff?
A: Option strategies involve buying and selling one or more options with one or more variables that dif...
Q: Hedging of positions and portfolios is accomplished via the use of both kinds of contracts.
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...
Q: Which TWO of the following statements are correct for a potential project with an investment followe...
A: Capital Budgeting techniques are used to know the profitability of the project. The NPV and the IRR ...
Q: = Homework: Homework 3 Question 14. What is the price of a 182-day, $100,000.00 Province of Manitoba...
A: Treasury bills are bonds or securities issued by the government for short period usually less than a...
Q: A reputable company plans to place an investment with a private equity firm with an amount of Php 10...
A:
Q: The effective annual rate (EAR) for a savings account with a stated APR of 4% compounded daily is cl...
A: Effective Annual Interest Rate Effective annual interest rate refers to the actual rate of interest ...
Mutual fund companies perform similar functions to banks in that they are deposit-taking institutions that pay interest to their depositors. *
True or False
Step by step
Solved in 2 steps
- The term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only those funds loaned to banks by the public. c. only those funds loaned to banks by the central bank. d. all those funds changing hands between the lenders and borrowers in the financial markets.Secondary Intermediaries are called as such because they depend heavily on other financial intermediaries like commercial banks to loanable funds. Included in this category are finance companies, mortgage banks, and real estate investment trusts. It is true or false?Financial intermediation is not confined to bank lending but is also carried out by nonbank firms such as mutual fund companies. How do mutual funds help overcome information problems in financial markets?
- Mutual funds are managed by _____ organized much like any other business. A) brokers B) market makers C) investment companiescompare and contrast certificates of deposit, mutual funds, bond funds, and treasury notes. Answer the following questions: 1 What is the major difference between mutual funds and certificates of deposit? 2 How are mutual funds and certificates of deposit alike? 3 What is the major difference in bonds and treasury notes, and which would you prefer as an investor? 4 How are bonds, treasury notes, mutual funds alike?The ANZ Bank is an example of a: Select one: a. an Authorised Depository Institution. b. a Unit Trust c. a Finance Company d. a Contractual Savings Institution.
- Mutual funds collect money from its _____ A) lenders B) shareholders C) banks D) loan sharks and invest those funds in _____. A) diversified portfolios of securities B) bank CDs C) precious metal and artPlease define in your own words the following terms: contractual savings institution, hedge fund, I.P.O. , investment banking, mutual fund, pension fund, underwriting. Please use your own words and no plagiarism make it really short and simple answerWhat are the roles or purposes of the following: • Mutual Funds • Pension Funds • Other financial institutions?
- Which of the following statements are true?I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity.II. Financial institutions manage their liquidity by participating in money markets. They may issue moneymarket securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The required rate of return changes in response to…When borrowers borrow funds from the financial market through a financial intermediary, it is known as : Direct financing Indirect financing Insurance financing 2.Is an example of a financial instrument. Shares Bond All of the aboveMutual funds are managed by an investment company. The owners of the mutual fund are different from the shareholders. The investment company owners do not, necessarily, invest in the mutual funds they are managing. Discuss whether this situation results in an incentive for the owners of the investment company to charge higher fees to the mutual funds investors.