Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements regarding direct finance is true? A. Securities are assets for the firm that issues them and liabilities for the individual

image text in transcribed

Which of the following statements regarding direct finance is true? A. Securities are assets for the firm that issues them and liabilities for the individual that buys them. B. Direct finance occurs when borrowers sell securities directly to lenders. C. Direct finance requires the use of financial intermediaries. D. In the United States, more funds flow through the direct financial channels than through indirect financial channels. Let's assume that a carpenter borrowed $2,000 to be paid off in a year to finance a machine that would make him work faster As a result, he is able to take on more projects and collect $400 more earnings in the first year, after paying off the principal of $2,000. However there is a 15% rental fee (interest) on his loan that he also has to pay off. The carpenter earned an extra $ in the first year (Round your response to the nearest dollar)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles And Practice

Authors: Timothy Gallagher

7th Edition

0996095462, 978-0996095464

More Books

Students also viewed these Finance questions

Question

What is the problem asking me?

Answered: 1 week ago