Business, 19.02.2021 02:00 katrinajernae7008
[Related to Making Connection] A column in the New York Times noted that during the housing boom that ended in 2006: "Global banks had loaded up on these supposedly safe securities, and were at risk of becoming insolvent when their true value became known. Some banks blew up; others were bailed out." Source: Neil Irwin, "What 'The Big Short' Gets Right, and Wrong, About the Housing Bubble," New York Times, December 22, 2015. Which of the following are the securities the columnist is referring to? A. Government bonds. B. Tax-deferred annuities. C. Commercial paper. D. Mortgage-backed securities. What caused the value of these securities to decline?
Answers: 2
Business, 22.06.2019 08:00
Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)
Answers: 1
Business, 22.06.2019 19:00
The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.
Answers: 1
Business, 23.06.2019 02:00
Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.
Answers: 3
Business, 23.06.2019 07:50
Acountry has reached a level of economic development where the manufacturing of both semidurable and nondurable consumer goods has just begun. also, the goods demanded relate to equipment and supplies to support manufacturing. in which stage of rostow’s five-stage model of economic growth does the country fit?
Answers: 1
[Related to Making Connection] A column in the New York Times noted that during the housing boom t...
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