EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Question
Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction: 

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets. 

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction: 

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets. 

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction: 

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets. 

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction: 

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets. 

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