answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svetoff [14.1K]
2 years ago
5

IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S

. public through its mutual funds. Morgan Stanley is acting as a(n) ______.
A. asset transformation by Morgan Stanley.B. primary market transaction.C. foreign exchange transaction.D. money market transaction.E. forward transaction.
Business
1 answer:
ivanzaharov [21]2 years ago
5 0

Answer: Asset Transformer

Explanation: The above is an example of asset transformation by Morgan Stanley. The transaction itself is an example of a primary market transaction.

An asset transformers (Morgan Stanley in this case) are involved in the conversion of risky assets (IBM stocks, in this case) into safer assets by creating and selling assets with risk characteristics that investors are more comfortable with (E.g. Mutual funds). The funds acquired by selling these assets are used to purchase other assets that may have for more risk and possibility for higher returns.

You might be interested in
Volkswagen has signaled that it is going to stay the course in russia, despite current political and economic headwinds. why do
Olin [163]

In Volkswagen, part of the reason, I believe, that they stayed in Russia, is because Russia and Germany have, in many instances, combined military and political forces. For Russia, it's a pro to their economy because they are able to hire more people there. It is a con in the sense that it may cost Volkswagen more money to be there in Russia than what their income may total.

6 0
2 years ago
Sherpa Outfitters sells specialty equipment for mountain climbers. Its sales for last year included $488,500 of tents and $800,0
saveliy_v [14]

$198,850

if you minus the $488,500 from $537,350, you come up with $48,850 so that's how much theyll make more on the tents alone and then you add the price of the sleeping bags being $150,000 plus $48,850 equals a total additional profit of $198,850 that derives from adding new product.

hope this helps

5 0
2 years ago
In​ 2011, the fixed costs of a company were​ $500,000, and its variable costs equaled​ $150,000. In​ 2010, the company made an a
Elina [12.6K]

Answer:

$650,000

Explanation:

The total cost of a company may be grouped into fixed and variable cost. The fixed cost remains constant at a given range of activity levels while the variable cost increases proportionately as the level of activities.

The total variable cost is the product of the unit variable cost and the number of units produced.

Hence, total cost in 2011

= $500,000 + $150,000

= $650,000

4 0
2 years ago
Justine was interested in learning how to play the piano. She has successfully passed every level of music book and is planning
Alexus [3.1K]
The stage of ability development is Justine at is now being a master. It is because he is now interested in learning how to play the piano and she has successfully passed every level of music book and is planning her own concert. I hope my answer has come to your help. God bless and have a nice day ahead!
8 0
2 years ago
Read 2 more answers
Protec Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is
taurus [48]

Answer:

The correct answer is 8.23%.

Explanation:

According to the scenario, the computation can be done as:

WACC of debt = Respective costs of debt× Respective weight of debt

= (0.4 × 5)

= 2

WACC of preferred = Respective costs of preferred × Respective weight of preferred

= (0.15 × 7)

= 1.05

WACC of common equity = Respective costs of common equity × Respective weight of retained earning

= (0.45 × 11.5)

= 5.175

So, Total WACC = WACC of debt + WACC of preferred + WACC of common equity

= 2 + 1.05 + 5.175

= 8.225 or 8.23 (approx.)

3 0
2 years ago
Other questions:
  • At september 1, 2016, hotel suites co. reported owner's capital of $147,000. during the month, hotel suites generated revenues o
    13·1 answer
  • It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. the company's cost will be $50,009 if it produces a
    9·1 answer
  • Karan works at a shoe store where the latest trends in shoes are displayed. Down the road from his store, two more stores opened
    8·2 answers
  • Yard Designs (YD) experienced the following events in 2018, its first year of operation: 1. On October 1, 2018, YD collected $54
    10·1 answer
  • Gomez runs a small pottery firm. He hires one helper at $15,000 per year, pays annual rent of $6,500 for his shop, and spends $2
    7·1 answer
  • Malia is a partner of a small clothing company. This week she has been hosting a group of potential investors. Several of the po
    5·1 answer
  • Ray, the CEO of McNealy Metals, often brags that his company offers the highest salaries in the industry, has excellent working
    14·1 answer
  • Friar Corp. sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70 p
    15·2 answers
  • Basics Test - English EXIT PREVIOUS Paul is setting up a marketing/sales event at a community center where he is going to discus
    10·1 answer
  • Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,000,000 and a current stock price of
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!