ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 6.12P
To determine
The ways of acquiring funds for investment by corporations.
Introduction:
The corporation requires funds for investing and operating in the business. There are different ways a corporation can acquire funds.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 1
The savings rate is
a) the difference between gross income and disposable income.
b) the percentage reduction in taxes due to permitted deductions.
Oc) cash savings as a percentage of total net worth.
d)
the ratio of personal income to taxes paid on income.
e) personal savings as a percentage of disposable income.
WORKSHEET (WS) Q2 - WEEK 5
STOCKS & BONDS
Learning Task 1: Fill in the blank the correct term that describe the given sentence.
1. Periodic interest payment that the bondholder receives during the time between purchase date
and maturity date; usually receive semi-annually.
2. The rate r such that the present value of all the coupons and the face value of the bond at r
compounded per period is equal to the price of the bond.
3. A place where stocks can be bought or sold. The stock market in the Philippines is governed
by the Philippine Stock Exchange (PSE).
4. Share in the company's profit
5. Ratio of the annual dividend per share
6. A ratio of the dividends to the number of shares
7. The current price of a stock at which it can be sold
8. Fixed period of time (in years) at which the bond is redeemable as stated in the bond
certificate; number of years from time of purchase to maturity date.
9. The rate per coupon payment period; denoted by r.
10. Bonds that do not provide coupons and…
20. Which of the following assets is the most liquid? (A) Stocks. (B) Residential real estate. (C) Gold. (D) Yachts.
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Chemistryarrow_forwardCapital Budgeting Part I) Capital budgeting is the process of deciding: O A. between financing with debt or equity O B. which projects to take C. which financial assets to purchasearrow_forwardExplain how non-financial considerations affect capital investment proposals.( any 3) 1- Social and responsibility accounting 2-Key stakeholders (internal and external): 3-Health and safety 4-The environment and sustainability 5-Unemployment and ethics 6- Unemployment and ethics 7- Flexibility and adaptability Answerarrow_forward
- What process does the net present value method use to help management determine whether a project is acceptable to a company? Options : A. It discounts net cash flows to their present value and then compares that value to the capital outlay required by the project.B. It determines the interest rate that will cause the present value of the capital expenditure to equal the present value of the expected net cash flows.C. It divides the present value of net cash flows by the initial investment to determine the profitability index of the project.D. It identifies the time period required to recover the cost of the capital investment from the net annual cash flow produced by the project.arrow_forward05 Financial institutions Multiple Choice promote innovation and new products. collect fees from small businesses. match Angel investors with Small Business Administration loans. collect income tax revenue.arrow_forwardD3) Assume Ms. Hautale an investor is interested in embarking on property investments in the Western africa and calls you in your capacity as a property investment specialist to request for advice on the typical investment decision-making process. With this background explain in brief how you would go about advising Ms. Hautale in this decision making process.arrow_forward
- What impact does the market for intangible property such as stocks and bonds have on the market for real estate? Why would a real estate investor pay attention to what is happening in these markets? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardThe income statement reflects which of the following?Choose one answer.a. Liabilities and revenue b. Cash flow and assets c. Revenue and expenses d. Assets and cash flowarrow_forward60arrow_forward
- 4) Mitsven Surfboard Inc. is a company in San Diego that shapes and sells surfboards. In 2018 their accounts were as follows: total revenues $150,000; cost of inputs $75,000; wages paid to employees $35,000; profits to owner $25,000, taxes paid by company $5,000. The building and the equipment used for production are property of the company, and no new building or new equipment was purchased in 2018. The value added produced by Mitsven Surfboard Inc. in 2018 was A. $150,000 B. $75,000 C. $65,000 D. $10,000 Answer: 5) Consider the accounts of Mitsven Surfboard Inc. described in question 4). Applying the income approach to GDP that we have studied in class, the depreciation (or consumption) of fixed capital for the company in 2018 was A. Zero. B. $10,000 C. $65,000. D. $75,000 Answer:arrow_forward2arrow_forwardplease answer (i)(ii)(iii)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Macroeconomics (MindTap Course List)EconomicsISBN:9781305971509Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax