{"id":53045,"date":"2022-04-16T13:57:23","date_gmt":"2022-04-16T13:57:23","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/suppose-edison-would-like-to-invest-10000-of-his-savings\/"},"modified":"2022-04-16T13:57:23","modified_gmt":"2022-04-16T13:57:23","slug":"suppose-edison-would-like-to-invest-10000-of-his-savings","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/suppose-edison-would-like-to-invest-10000-of-his-savings\/","title":{"rendered":"Suppose edison would like to invest $10,000 of his savings."},"content":{"rendered":"<div>\n<p>Suppose Edison would like to invest $10,000 of his savings.<\/p>\n<p>One way of investing is to purchase stock or bonds from a private company.<\/p>\n<p>Suppose TouchTech, a hand-held computing firm, is selling bonds to raise money for a new labAc\u20ac??a practice known as (<strong>equity or debt<\/strong>) finance. Buying a bond issued by TouchTech would give Edison\u00a0<strong>(an IOU, or promise to pay, from or a claim to partial ownership in<\/strong>) the firm. In the event that TouchTech runs into financial difficulty, (<strong>the stockholders or Edison and the other bondholders<\/strong>) will be paid first.<\/p>\n<p>Suppose instead Edison decides to buy 100 shares of TouchTech stock.<\/p>\n<p><strong>Which of the following statements are correct?<\/strong><\/p>\n<p>TouchTech earns revenue when Edison purchases 100 shares, even if he purchases them from an existing shareholder.<\/p>\n<p>Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Edison&#8217;s shares to decline.<\/p>\n<p>An increase in the perceived profitability of TouchTech will likely cause the value of Edison&#8217;s shares to rise.<\/p>\n<p>Alternatively, Edison could invest by purchasing bonds issued by the government of Japan.<\/p>\n<p>Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a (<strong>higher or lower<\/strong>) interest rate than a bond issued by the government of Japan.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Suppose Edison would like to invest $10,000 of his savings. One way of investing is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling bonds to raise money for a new labAc\u20ac??a practice known as (equity or debt) finance. Buying a bond issued by TouchTech would give [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-53045","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/53045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=53045"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/53045\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=53045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=53045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=53045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}