a firm has invested $500 in a new machine that is expected to last for the next 4 years. the machine will be depreciated on a straight line basis down to zero by the end of its 4 year life. the firm projects that the machine will generate consecutive annual cash inflows of $550 beginning in one year and will generate consecutive annual cash outflows at 260 also beginning in one year.. assuming the tax rate of 38%, determine the firm's cash flow next year.

Answers

Answer 1

The company's cash flow might be 186.80 next year.

Cash flow refers to the quantity of cash or cash equivalents that a business gets or expends for the purpose of making payments to creditors. The liquidity condition of the business is frequently studied using cash flow analysis.

Spending that occurs in the normal course of business is included in cash flow from operations. Payroll, the cost of items sold, rent, and utility bills are a few examples of these financial outflows. When corporate activities are very seasonal, cash outflows might vary greatly.

Future year's cash flow

Inflow = 500

Outflow = 260

Depreciation = 500/5 = 100

Tax rate = 38%

Cashflow = (500-260-100) × (1-0.38) + 100

= 186.80

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Related Questions

the ceo of gardengrow is considering moving to a modular structure. what would be the best reason to make such a move?

Answers

To increase the flexibility of the organization would be the best reason to make such a move.

Any structure erected for habitation by person or property, whether or not planned to be put on a permanent basis, is considered a modular structure. Factory-built buildings and subassemblies for manufactured residential and commercial units, modular houses, and pre-fabricated dwellings are examples of modular structures.

There are 90% fewer vehicle movements. less interruption and greater safety: Because modules may be erected in a matter of days, modular construction can result in 90% fewer vehicle movements2, allowing your site to run normally while construction work is being completed.

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Explain the differences between product brands, trade names, brand names, brand marks, and trade characters.

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The letters, symbols, and names that identify a product are called product brands. The company is identified by its trade name. Trade characters are characters that are lifelike, and brand marks are symbols or sounds that can be heard instead of spoken.

A brand is organizations use to recognize their item from others.

What is the sign that a brand uses to identify itself?

A symbol made up of text and images that is used to identify a brand is called a logo. It is made for life and can sometimes be slightly changed.A brand's mission and values are portrayed in its logo.

What is the name of a word or words selected to represent a business or product?

Brand names and trademarks A brand name is the part of a brand that can be said or written. It distinguishes a product, service, or company from others in a category that are similar to it. Words, phrases, designs, signs, symbols, or any combination of these can make up a brand name.

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which account is debited if materials costing $100,000 are sold? question 7 options: work-in-process control account cost of goods sold account revenues account materials control account

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Revenues account includes work-in-process control account, cost of products sold account, and materials control account.

What is mean by debited and credited?

In double-entry accounting, debits and credits were commonly assessed in account ledger accounts to record value changes brought on by company transactions. A credit entry reflects a value transfer from the account, whereas a debit entry indicates an exchange of wealth to the account.

What is debited transaction?

A debit transactions is one that gives customers access to their money, typically through a withdrawal from an ATM or a direct payment for products or services. Banks and other banking entities frequently offer debit transactions.

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the daily demand for muffins at a bakery is normally distributed with mean 50 and standard deviation 15. the bakery makes 60 muffins once at the start of each day. what is their service level for muffins?

Answers

The service level for muffins in the bakery is 100%.

What does "service level" mean?

By comparing how well a company meets customer expectations, one can ascertain the quality of its services. Customers buy services to address particular needs. Because they establish unambiguous commitments between a service provider and a customer, service-level agreements (SLAs) are crucial. In the telecommunications sector, service-level agreements are typical and give businesses the assurance that a set of standards will be upheld.

Z score is used to calculate by how many standard deviations the raw score is above or below the mean. It is the formula:

Z = (x - μ) / σ

With description x = raw score, μ = mean and σ = standard deviation.

Given data:

σ = 15

μ = 50

Then:

For x = 60

Z = (x - μ) / σ

Z = (60 - 50) / 10

Z = 10/10 = 1

convert to percent format will be 100%

When they bake 65 muffins, their service level for muffins are 100%

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petty and colleagues (1983) had participants take part in a study on consumer attitudes. they were told they would receive a gift after the study. one group was promised a choice of razor blades, the other a choice of toothpaste. participants then flipped through ads and came across an ad for edge razor blades. half the participants read strong arguments for edge razor blades, and half read weak arguments. one version of the ad featured an attractive celebrity, and the other version featured an average-looking person. when the edge ad was relevant to the participants' later choice, what were the results?

Answers

When the edge ad was relevant to the participants' later choice when the edge ad was relevant to participants' later choice, If the arguments were strong, the participants chose Edge blades.

People can typically adjust to many opinions, although it goes against their own perception. The basic attribution error is that the tendency to position additional stress on internal characteristics to elucidate someone's dangerous behavior. associate example of this is often thinking that an individual agency did not answer your decision is rude (internal), however actually, they'll not have received your message (external).

In psychological science, the term person perception refers to the various mental processes that we tend to use to make impressions of others.

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imagine a 2,000-acre park with picnic benches, trees, and a pond. suppose it is publicly owned, and people are invited to enjoy its beauty. when the weather is nice, it is difficult to find parking, and the trash cans overflow with food wrappers on summer afternoons. otherwise, it is a great place. the park is a common resource because

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It's a wonderful site. The park is a shared resource since excessive use by one individual reduces the use by others.

Any limited resource, like water or pasture, that offers consumers measurable advantages but that nobody, in particular, owns or has exclusive claim to, is referred to as a common resource (or the "commons").

Society must find a mechanism to make individual resource users consider the costs they impose on other users in order to ensure the efficient use of a shared resource. The essential idea behind this is the same as the one used to persuade people to internalize a harmful consequence of their behavior.

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HELP ASAP 40 POINTS
How do you recommend the government change GDP and taxes to stabilize the economy in each of the following scenarios?

1, Economic growth has started slowing and the unemployment rate has increased over the past four months.
2, There has been strong growth in GDP over the past year, unemployment is very low, and inflation has started to rise.
3, Prices are stable, unemployment is low and the economy is growing at an average rate

Answers

1) During a situation where economic growth has started slowing and the unemployment rate has increased over the past four months, the government needs to change GDP by increasing it's spending and lowering taxes. The above will inject money supply into the economy and increase spending power.

2) Where there has been strong growth in GDP over the past year, unemployment is very low, and inflation has started to rise, the government needs to curb spending by selling money market instruments such as government bonds. Taxes should be increased to reduce the money supply.

3) Where prices are stable, unemployment is low and the economy is growing at an average rate the government should focus on expanding the economy through exports.

What is GDP?

Gross domestic product (GDP) is a financial measurement of the market worth of all final goods and services produced and sold in a country during a given period of time.

Most people agree that a higher GDP is desirable because it is associated with greater economic opportunity and a higher standard of living. As you can imagine, a country with a high GDP can still be a less than optimal place to live, so there are other factors to consider.

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standardized, reusable containers have fairly obvious benefits for shipping. what is the purpose of these devices within the plant?

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The purpose of these devices within the plant is that specific amounts are frequently protected using standardized containers.

 

Additionally, they result in less wasteful space and weight, as well as less labor-intensive packing, unpacking, and preparation. Reduced labor costs: standardized reusable components provide a constant production flow, enhancing labor productivity. Better protection for items in transportation is provided by sturdy containers, which leads to reduced damage and loss and safer handling.

Numerous advantages come with reusable containers. They not only are made to specifically protect the products they contain, but they also save money and produce less waste, all of which help advance sustainability. Some industries, like those in the food and beverage industry, especially the dairy industry, and the automotive sector, rely on reusable containers, but the advantages can only be realized when the containers are used properly.

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what are the differences among initial creditability, derived creditability, and terminal creditability?

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Derived credibility is important for both public speaking and employment interviews, since your contacts or résumé may serve as your only source of initial credibility. The level of credibility someone has attained or lost after giving a speech is known as their terminal credibility.

Initial: is the speaker's credibility before they even begin to talk.
Derived: the speaker's credibility, which is established by everything they say and do throughout the speech.
Terminal: the speaker's credibility at the conclusion of the discourse.

Derived credibility is the evaluation of the speaker's reliability and trustworthiness by the audience as it changes from point to point in the speech. It matters how you approach the podium and begin by establishing credibility.

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bob works as a torklitt driver in a manufacturing plant. vhen ne is at work. he is covered bv workers compensation insurance. his employer has also included a major medical plan as part of his benefit package, so bob is also covered by insurance outside of working hours, as well. which insurance term best describes this arrangement?

Answers

This arrangement is superior due to the insurance term's 24-hour coverage.

How is a 24-hour shift covered?

The best 24/7 shift pattern, assuming a flat 24/7 shift pattern cover requirement, is typically a four- or five-team solution that can use either three shifts (typically eight hours each) or two twelve-hour shifts to provide 24/7 shift pattern cover.

What does a schedule with 24 hours look like?

In a 24-hour schedule, teams work four 10-hour shifts consecutively before taking two days off. They then work four 10-hour third shifts consecutively before taking three days off. They then work four 10-hour second shifts consecutively before taking another three days off.

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using the cut-and-try method for aggregate operations planning, we can calculate the ending inventory and then calculate the safety stock as a percent of forecast demand. suppose that the beginning inventory is 300, the production requirement in units of product is 1,350, and demand forecast is 1,500. what is the ending inventory and percent safety stock? multiple choice 150 and 20% 450 and 30% 200 and 10% 150 and 10% 300 and 20%

Answers

Here ending inventory is 150 and percent safety stock is 10%.

What is a protection stock inventory?

Safety inventory is an more volume of a product which is saved in the warehouse to stop an out-of-stock situation. It serves as insurance plan against fluctuations in demand.

Does adding protection inventory extend general inventory?

Keeping greater stock will increase inventory protecting costs, however having too little inventory can lower revenues and bad Yelp opinions from sad customers. Forecasting purchaser demand for products is appropriate for inventory management, but safety inventory is the buffer if those forecasts are wrong.

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if a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

Answers

Due to the direct relationship between price and revenue for inelastic items, raising the price of these goods will raise the company's revenue.

The total revenue rises as a result of the higher price and constant quantity required for an inelastic commodity when the price is raised and the demand does not change. Price increases do, however, often result in a modest decline in quantity sought.

A one percent change in price for an inelastic good causes a less than one percent change in the quantity demanded. Total revenue will increase when an inelastic good's price is raised, while total revenue will decrease when its price is lowered.

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when a global firm turns to its subsidiaries in less-developed markets for new product ideas, the firm is engaged in

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when a global firm turns to its subsidiaries in less-developed markets for new product ideas, the firm is engaged in reverse innovation.

A company that is owned or controlled by another company, known as the parent company or holding company, is referred to as a subsidiary, subsidiary company, or daughter company. A parent or holding company's subsidiary is a business that it owns or manages. Typically, the parent firm will hold a majority of the shares in the subsidiary company. The parent company now has the majority ownership of the subsidiary. Being the dominant shareholder is sometimes enough to gain control. In the business world, a subsidiary is a business that is a part of another business, also known as the parent company or holding company. With a controlling interest in a subsidiary business, the parent owns or manages more than 50% of the stock.

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one month, teacher's helper produced 18 instructional modules. what was the average fixed cost for that month?

Answers

$60 was the average fixed cost for that month.

AFC = FC/Q. Now we have Q = 18 and FC = 1080. So AFC = 1080/18 = 60

Hence the correct choice is A. AFC = $60 for Q = 18.

In enterprise and accounting, the price is the economic fee that has been spent by an enterprise with a view to producing something. In an enterprise, price expresses the quantity of money that is spent on the production or introduction of a very good or service. cost does no longer include a markup for income.

There are forms of charges, constant and variable. fixed and variable costs affect the business in specific methods but each is vital in making the enterprise worthwhile.

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tracy manages a group of 15 employees at work. she works hard to maintain a warm, friendly relationship with her employees and tries to support group cohesion. sometimes, her employees think she is a little disorganized, but they all agree that they feel truly cared for. tracy is an example of what type of leader?

Answers

Tracy is an example of expressive leader as she helps the employees.

Which of the aforementioned tactics would be employed to reduce social loafing?

The creation of smaller groups or teams is one of the most effective ways to lower the possibility of social loafing. Make it simpler for team members' efforts to be recognised and backed. Smaller groups also make it easier for people to develop relationships and come together as a team, two qualities that motivate people to participate. the propensity for group members to put in less effort when working together to achieve a common objective than when held individually responsible. community facilitation In the presence of others, responses to easy or well-learned activities are more forceful.

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Your store sales average 190000 per month your triple net lease has tbe following monthly terms: rent is 5% of sales insurance is 300 maintenance is 75 utilities total 300 and taxes are 120 you expect next years sales to increase 5% but your lease terms will remain the same calculate the next years annual leade payment

Answers

The next year's annual lease payment is $129,240. The term “Lease Payment” is analogous to the rental payment. It refers to the payment created between the owner and renter, per the contract.

A Lease payment refers to the amount that's adequate for the monthly rent prearranged in an exceedingly contract by 2 parties.

Step 1: Verify next year's regular payment.

Since next year, the sales regular payment can have increased by seven-membered, we can verify next year's annual sales as shown:

F=P(1+R)

where;

Next year regular payment

This year's regular payment

R=salary increase rate

In our case;

F=unknown, to be determined

P=190,000 per month

P=(190,000×12)=$2,280,000 annually

R=5%=5/100=0.05

replacing;

F=2,280,000(1+0.05)=$2,394,000

Step 2: Verify next year's rent.

Next years rent=0.05×2,394,000=$119,700

Step 3: Verify insurance, maintenance, utilities and total annual taxes.

Total=annual insurance payments+annual maintenance payments+annual utilities payments+annual taxes

Total=(300×12)+(75×12)+(300×12)+(120×12)=$9,540

Step 4: Verify next year's annual lease payments.

Next year's annual lease payments=next year's rent payment+ insurance+maintenance+utilities+annual taxes

where;

Next year's rent payment=$119,700

Insurance+maintenance+utilities+annual taxes=$9,540

replacing;

Next years annual lease payments=(119,700+9,540)=$129,240

Next year's annual lease payments=$129,24

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a characteristic that consumers value but may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience is referred to as

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The characteristic is referred to as credence quality.

Credence quality is when a commodity has features that the buyer is unable to ascertain even after buying it. This causes difficulty for them to use it for things like professional services, medical operations, car repairs, etc. It is related to commodities whose evaluation calls for specialised knowledge or whose outcomes take time to manifest.

Due to knowledge asymmetry, credibility products frequently show a direct link between price and demand. Due to the imbalance, vendors are motivated to defraud customers by charging exorbitant rates for subpar goods. Credence quality thus denotes a feature that consumers desire but may find challenging to evaluate even after purchase because they lack the requisite information or experience.

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when the demand for electricity peaks during the hottest days of summer, florida power and light company can generate more electricity by using more fuel and increasing the working hours of many of its employees. the company cannot, however, increase electric power production by building additional generating capacity. this means that the company is in the

Answers

The company is increasing working hours and the amount of fuel in order to increase the electricity rather than building additional generating capacity showing that the company is in the short run.

The short run is a time period when firms have one factor of production as fixed and cannot be varied. This time period is not defined, it depends on and varies company to company in accordance with the situation of the market. The short run does not give room for the conduction of the operation of the company in order to meet the rising demand. Wages, output, and price cannot be adjusted freely.

In the case of Florida power and light companies, land and rent are fixed while certain inputs like men (employees) and materials (raw materials) are variable which is increased in order to meet up the rising demand for electricity.

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what is the repricing gap if the planning period is 30 days? 3 months? 2 years? recall that cash is a non interest-earning asset. what is the impact over the next 30 days on net interest income if interest rates increase 50 basis points? decrease 75 basis points? the following one-year runoffs are expected: $10 million for two-year business loans and $20 million for eight-year mortgage loans. what is the one-year repricing gap? if runoffs are considered, what is the effect on net interest income at year-end if interest rates increase 50 basis points? decrease 75 basis points?

Answers

$55 million for two years, $20 million for three months, and $95 million for thirty days.

What does a repricing gap mean?

The repricing gap is a measurement of the difference between the dollar value of assets that will reprice and the dollar value of liabilities that will reprice during a given time period, where reprice refers to the possibility of receiving a new interest rate.

The window of time during which repricing is possible is represented by rate sensitivity. Rate-sensitive assets are those that will mature or be revalued within a certain time frame. Liabilities that are rate-sensitive are those with a set maturity date or new pricing.

Calculation:

Using a 30-day planning window, we have the following:

$75 - $170 = -$95 million.

Using a three-month planning horizon, we have:

($75 + $75) - $170 = -$20 million.

Reprising the gap using a 2-year planning period, we have;

($75 + $75 + $50 + $25) - $170 = +$55 million.

b) the impact over the next 30 days on net interest income varies. We'll use (i) in the event that net income rises by 50 basis points.

ii) when net income decreases by 75 basis points.

if the impact over the next 30 days on net interest income increases by 50 basis points, we would have that  net interest income will decrease by $475,000, see below:

ΔNII = CGAP(ΔR) = -$95m.(0.005) = -$0.475m

If the impact over the next 30 days on net interest income decreased by 75 basis points, net interest income will increase by $712,500.  This is because:

ΔNII = CGAP(ΔR) = -$95m.(-0.0075) = $0.7125m

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the following statements describe why it is important to make the consumer aware of the brand name. choose a false statement. a. consumers are more likely to put a familiar brand in their top-of-mind, compared to unfamiliar brands. b. consumers are more likely to choose a familiar brand, compared to unfamiliar brands. c. consumers tend to learn something about a familiar brand faster than unfamiliar brands. d. consumers tend to perceive a familiar brand as cheaper and more irrational purchases, compared to unfamiliar brands. e. marketing communications for familiar brands are easier and more effective than unfamiliar brands.

Answers

The false statement is: marketing communications for familiar brands are easier and more effective than for unfamiliar brands.

Brand equity refers to the worth an organization gains from a product with a recognizable and loved name compared to a generic equivalent.

The company's assessment of the market was hardly objective. They saw the 'broken' as a drag that their product resolved. A complete is among the foremost necessary assets an organization has. As a result, it represents the corporate and helps keep it in consumers' minds.

Brand equity refers to the worth an organization gains from a product with a recognizable and loved name compared to a generic equivalent.

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with a negative externality, such as pollution, when producing good x, the most appropriate government policy will be

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With a negative externality, such as pollution, when producing good X, the most appropriate government policy will be place a per unit tax on the production and sale of good X.

When a third party incurs expenses as a result of the creation or consumption of a good, this is known as a negative externality. Negative externalities are frequently shown by instances of air and noise pollution.

Private markets will overproduce when negative externalities are present because the firm's production costs are inflated and its revenues are understated.

The traditional example of a negative externality is pollution, when the polluter makes decisions based solely on the direct cost of production and the potential for profit, disregarding the indirect costs to those afflicted by the pollution. Positive externalities reduce output since the customer does not receive the full advantages of the good.

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the automotive semiconductor has been in shortage, but the supply has recently been stabilized. what would happen to the demand for car engines? automotive semiconductors and car engines are complementary goods.

Answers

"Cross Elasticity of Demand" We know that complementary goods are those that are demanded together. Complementary goods are those in which one good has utility and is demanded only when the second related good is also available.

In economics, goods are products that meet human desires and give utility, such as a gratifying product purchased by a consumer. A typical difference is drawn between transferable products and nontransferable services.

A good is a "economic good" if it is helpful to people but scarce in relation to demand, requiring human effort to attain it. In contrast, free products, such as air, are naturally abundant and require no intentional effort to obtain. Private goods are items owned by individuals, such as televisions, living room furniture, wallets, cellular phones, and basically everything owned or utilized on a regular basis that is not food-related.

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a company issued 7%, 20-year bonds with a face amount of $72 million. the market yield for bonds of similar risk and maturity is 7%. interest is paid semiannually. at what price did the bonds sell? (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (enter your answers in whole dollars. round final answers to the nearest whole dollar.)

Answers

it’s 627377364 because 63636464

which term refers to a system in which workers complete their tasks in separate departments without regard to the consequences for the other components of the process?

Answers

The silo effect refers to a device wherein employees whole their duties in separate departments without regard to the results of the alternative additives of the process.

what's the Silo Effect?

The silo impact is mainly the end result of compartmentalization in an organization. That is, whilst there may be a separation of men and women and corporations, silos are formed, and the effects might be that the corporations do now no longer make company efforts for the development of the general goal.

There isn't any collaborative attempt to useful resource the overall goal of the company and in lots of cases, positive booths will improve the others and it could bring about a setback for the enterprise as a whole.

The silo impact capitally suggests insularity amongst departments in an organization. This separation is a prime downside to a revolutionary enterprise organization as it breeds division, alienation, and a common war of words amongst corporations.

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suppose you invest equal amounts in a portfolio with an expected return of 16 percent and a standard deviation of returns of 18 percent and a risk-free asset with an interest rate of 4 percent. calculate the standard deviation of the returns on the resulting portfolio.

Answers

Here, in this question Expected return = 0.5(16) + 0.5(4) = 10%.

How do you calculate the expected return of a portfolio with volatility?

The predicted return is calculated by using multiplying the weight of each asset with the aid of its expected return. Then add the values for each investment to get the complete anticipated return for your portfolio. Hence, the formula: Expected Portfolio Return = (Asset 1 Weight x Expected Return) + (Asset 2 Weight x Expected Return

When calculating the expected fee of return on a stock portfolio the usage of a weighted common The weights are based totally on the?

The fundamental predicted return method entails multiplying every asset's weight in the portfolio by means of its predicted return, then including all these figures together. In other words, a portfolio's predicted return is the weighted common of its person components' returns.

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By 2018, industries that are projected to represent 12 percent of the U.S. overall domestic product are _____.

Answers

By 2018, industries that are projected to represent 12 percent of the U.S. overall domestic product are

finance industryinsurance industry

What is an industry?

An industry is a collection of businesses that are connected by their main lines of activity. There are numerous categories of industries in contemporary economies. Sectors are generally used to combine together bigger groups of industry classifications.

Typically, a company's major revenue sources determine what industry it belongs to. For instance, even if a carmaker may have a financing segment that contributes 10% to the company's overall earnings, most classification systems would place the business in the automaker category.

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complex and expensive technology is needed to develop products at feel-better pharmaceuticals based in austin, texas. for this reason, the company plans to have a plant built in portugal that is ready for full operation and will be used for products sold in europe. what type of entry mode is feel-better pharmaceuticals using?

Answers

Using medications to make you feel better is a turnkey project sort of entrance mode. At Austin, Texas-based feel-better medicines, developing drugs requires sophisticated and pricey equipment.

What does a brief definition of technology mean?

Technology, or as it is sometimes referred to, the modification and modification of the human environment, is the application of practical application of such new goals of human life.

What makes technology so crucial?

Information technology is crucial in our lives because it makes managing with the uncertain facets of life easier. Technology offers a variety of methods to promote development and information exchange. IT intends to implement both of these objectives in simplifying tasks and find solutions to lots of issues.

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we thought american business was the rock of gibraltar. we were the prosperous nation, and nothing could stop us now. a brownstone house was forever. you gave it to your kids and they put marble fronts on it. there was a feeling of continuity. if you made it, it was there forever. suddenly the big dream exploded. the impact was unbelievable.based on the excerpt and your historical knowledge, why did the stock market crash make americans lose confidence in business?

Answers

The stock market crash make Americans lose confidence in businesses like Harburg, many were shocked by the stock market collapse and the ensuing Depression.

Before the Great Depression, Americans had it all and prosperity was at its peak during that time as is stated in the question. But as the Great Depression arrived it was a huge surprise to everyone as it was least expected. Between the years 1929 and 1939, there was a worldwide economic depression that caused a major fall in stock prices. The world's greatest economy shrank by a third and during this time unemployment reached its peak and consumer prices fell by 25%

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Answer:

Americans realized that business was not immune to failure and could collapse.

Explanation:

which of the followings is not correct about the optimal risky portfolio on an investment opportunity set? group of answer choices it is not affected by the risk preference of investors its capital allocation line (cal) has the highest slope it offers the highest sharpe ratio its capital allocation line (cal) meets the investment opportunity set more than once

Answers

The investment opportunity set more than once  is not correct about the optimal risky portfolio on an investment opportunity set. Any tangible or intangible thing offered, offered for sale, sold, or traded on the basis of express.

Implied representations about past, present, or future income, profit, or appreciation is considered an investment opportunity portfolio. Lending money is a form of investment. Bonds and even savings accounts are loans that produce interest for the investor over time. The identification of possible investment opportunities is the first step in the capital budgeting process. Typically, the planning body makes forecasts of future sales, which serve as the foundation for determining production targets.

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which of the following pooled investments is likely to require the smallest minimum investment amount? a) wrap fee account. b) market neutral fund. c) closed-end mutual fund.

Answers

The correct option (C) Closed-end mutual fund. Shares in closed-end mutual funds can be purchased at prices set by the market.

What is a closed-end mutual fund?

A closed-end fund is a form of mutual fund that, in order to raise money for its initial investments, issues a predetermined number of shares through a single initial public offering (IPO). After that, its shares can be purchased and sold on a stock exchange, but no new shares or funds will be generated for the fund.

Municipal bond funds are an illustration of closed-end funds. These funds invest in local and state government debt while attempting to reduce risk.

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