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dusya [7]
2 years ago
7

Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing

financial securities at a geometric rate, specifically from $6 to $12 to $24 to $48 to $96 to $192 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $6 to $9 to $12 to $15 to $18 to $21.
Instructions: Enter your answer as a whole number.

If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline if the value of the underlying asset suddenly and unexpectedly fell by $12?
Business
1 answer:
jekas [21]2 years ago
5 0

Answer:

When the value of existing financial securities rose from $6 to $192, the value of underlying assets rose from $6 to $21. It is also known these patterns hold as much for increases as for decreases. Notice that the original value of both the existing financial securities and underlying assets is $6.

Explanation:

Now, there occurs a $12 fall in the underlying assets. This means the value of underlying assets falls from $21 to its original level of $9 (=$21 — $12), thereby causing the value of existing financial securities to also fall from $192 to its original level of $9. This means the value of the financial securities declines by $183 (= $192 — $9).

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2 years ago
Whispering Corporation had income from continuing operations of $10,775,400 in 2020. During 2020, it disposed of its restaurant
pantera1 [17]

Answer:

                                   Whispering Corporation

                             Partial income statement for 2020

Income from continuing operations                           $10,775,400

Income from discontinuing operation:

Division operated loss                             ($321,500)

Division disposal Loss                            <u> ($200,100) </u>

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8 0
2 years ago
If there are constant rumors that a business is in financial crisis, employees might lose internal motivation. which level of ma
lbvjy [14]
<span>If there are constant rumors that a business is in financial crisis, employees might lose internal motivation.

The level of maslow's hierarchy that reflects this situation is safety needs.

</span><span>Safety needs in Maslow's hierarchy refer to the need for security and protection.

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7 0
2 years ago
Read 2 more answers
TLC Credit, Inc. has $35.0 million in consumer loans with an average interest rate of 12.0%. The bank also has $30.0 million in
MissTica

Answer:

$460,000 decrease

Explanation:

The computation of TLC's estimated change in revenues next year is shown below:-

TLC's estimated change in revenues next year = ((Consumer loan × Interest rate) + (Home equity loan × Interest rate) + (Corporate securities × Interest rate)) - ((Increased consumer loan × Decrease rate) + (Increase equity loan × Interest rate) + (Corporate securities × (1 - decreased percentage) × average interest rate))

= (($35.0 million × 0.12) + ($30.0 million × 0.O8) + ($5.0 million × 0.06)) - (($40.0 million × 0.10) +($32.0 million × 0.065) + (5 million × (1 - 20%)  × 0.09))

=$6,900,000 - $6,440,000

= $460,000 decrease

Therefore for computing the TLC's estimated change in revenues next year we simply applied the above formula.

6 0
2 years ago
Kate is a customer care executive at a telecommunications services company. She receives a complaint from Mike, a customer, abou
Sergio [31]

Answer:

Kate is most likely to Provide a fast response to the customer using customer care software.

Explanation:

Customer Service Executives job is to handle phone, internet etc, interactions with customers. They manage client claims, complaints and process customer orders.

She received a complaint from Mike(who is a customer) about an unnecessary deduction of $10 from his phone credit. If Kate is going to follow her job protocol, she need to provide fast, accurate and precise response to Mike(the customer) using the company customer care software.

Using the software and her knowledge of customer service she should be able to offer a professional approach in answering mike and provide information about the deduction.

5 0
2 years ago
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