Answer: Endowments
Explanation:
The institutional investors that most likely must spend a target percentage of the portfolio annually is the endowments.
Endowment fund refers to the long term fund that is used for perpetual operations and usually set up by colleges or in hospitals
The fund then covers the expenses relating to provision of services for the students. A portion of the endowment is allowed to be use for every fiscal year.
Answer:
Modified Internal Rate of Return (MIRR) is higher than the discount rate. Therefore, this offer should be accepted.
Explanation:
Find the given attachment
Answer:
$3,545
Explanation:
PV = 3990
APR = .139
PV = $3,990 = $50 × (1 - {1 / [1 + (.139 / 12)]t}) / (.139 / 12)
t = 224.16 months.
PV = $3,990 = $60 × (1 - {1 / [1 + (.139 / 12)]t}) / (.139 / 12)
t = 127.72 months.
Additional cost = (224.16 ×$50) - (127.72 ×$60) = $3,545
It will cost Jake $3,545 to pay off his balance, if he makes monthly payments of $50 rather than $60.
Answer:
= 55,780.5 units
Explanation:
A bond is a financial instrument used by a company or government to borrow money.
Zero-coupon bond: Most bonds pay a fixed percentage of their face value - coupon- as interest payment at requalr intervals.
A zero- coupon bond pays no coupon. However, the return on it is the difference between its face value and price.
The Price of a bond is determined using the discounted flow method. Here the present value is calculated using its the face value and the yield. The face value is the amount promised by borrower to pay back. And the yield is the return on the bond expressed in %.
This can be captioned as follows:
P × (1+r)^n = FV,
P- price, FV- Face value, r = yield
P-?, FV- 1000, r = 6.5%/2 = 3.25% (semi-annual interest rate)
P × (1.0325)^(25× 2) = 1000
P × 4.9488 = 1000
P= 1000/4.4988
P= $222.28
P= $222.3
If the bond sells for $222.3, then to raise $12.4 million, Allison will have to sell:
= 12,400,000/222.3
= 55,780.5 units
Answer:
A. Yes, because chatting with others is not inherently part of buying groceries
Explanation:
When a third party benefits from the transaction between two parties its is known as economic transaction. For example when the parents pay for college education for their children, school and the parents are not the only beneficiaries , it is also beneficial for the society as the student would become a good citizen and that would solve many social problems itself.
Standing in line at small town grocery store gives the people chance to socialise. It is part of positive externality because chatting with others is not inherently part of buying groceries, it is an extra benefit for the buyers.
