Wk2 Individual Assignment Fin370

Individual Reading Assignment Questions University of Phoenix FIN370 December 14, 2010 Week 2 questions 14-1 What are financial markets? Institutions that facilitate transactions in each(prenominal) types of financial claims (securities) are called markets. What function do they perform? avail the transfer of savings from economic units with a surplus to those with a deficit. How would an saving be worse off without them? The wealth of the economy would be less without the financial markets. The rate of capital make-up would occur at lower rates to the net additions during a specific period to the stocks of dwellings, productive plan and equipment, inventory, and consumer durables. 14-3 Distinguish amid the money and capital markets. The distinction between these two concepts is the maturity date period of the securities traded in them. 14-4 What major benefits do corporations and investors enjoy because of the organism of organized protective cover exchanges? Providing a invariable market. A continuous market provides a series of continuous prices. Establishing and publicizing uncontaminating security prices. Permits security prizes to be set by warlike forces. Helping business raise capital.

It is easier for firms to float new security offerings success soundy because a continuous market exists where prices are competitively determined. 15 12A (Break-even point) You are a hard-working analyst in the business leader of financial operations for a manufacturing firm that produces a whizz product. You have developed the following cost structure instruction for this company. All of it pertains to an output level of 10 million units. utilize this information, find the break-even point in units of output for the firm. reelect on operating assets = 25% Operating asset turnover = 5 times Operating assets = $20 million Degree of operating leverage= 4 times 1) Compute the operating profit margin: (Margin) x (Turnover) = Return on operating assets (M)... If you want to get a full essay, order it on our website: Ordercustompaper.com

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