I want to buy a new car. My choices are a red convertible sports car or a full-size pick-up

Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc

Sonja [21]

The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

= 8.55%

Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

= 15.11%

Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.

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3 0

1 year ago

The function of media advertising is to support the economy, provide information about products, and underwrite media costs asso

Lynna [10]

The function of media advertising is to support the economy, provide information about products, and underwrite media costs associated with: Promotion of consumption
By using media advertising, a company will be able to obtain larger reach to inform potential customers about the existence of their product, which will persuade the potential buyers to spend their saving to consume their products.

6 0

3 years ago

Can someone please help me? Why are subordinate bonds and preferred stock more risky than long-term senior bonds?

MA_775_DIABLO [31]

Answer:

Subordinated bonds, also known as subordinated debts, is an unsecured loan or bond that ranks below other, more senior loans or securities with the respect to claims on assets or earnings. Generally, subordinated bonds are debts that can be added to preferred stocks. Preferred stocks can be viewed as long- term investments, but are generally more risky because they are more sensitive to interest- rate risk if the rates rise. If they rise, then the price of the preferred stocks may fall and can fall lower than the price of short- term bonds. The difference between subordinated bonds and senior bonds is the priority in which the debt claims are paid. If one has to file bankruptcy or face liquidation, senior debts is paid back before the subordinate debt. Once the senior debt is completely paid back, then the subordinate debt starts being repaid.

Explanation:

7 0

3 years ago

Read 2 more answers

Bridge City Consulting bought a building and the land on which it is located for $175,000 cash. The land is estimated to represe

Darya [45]

Answer:

Part 1

D.E = $5,300

Part 2

a. Book Value = $61,900

b. Book Value = $122,500

Explanation:

Step 1 : Determine the Cost of Buildings

Separate the Cost of Land and the Cost of Building from the Purchase Price

Calculation of the Cost of Building

Purchase Price ($175,000 x 30%) $52,500

Building Renovations $20,000

Total $72,500

Step 2 : Depreciation calculation

Depreciation expense = (Cost - Residual Value) ÷ Useful Life

= ($72,500 - $19,500) ÷ 10

= $5,300

After Year 2

Buildings :

Accumulated Depreciation = $10,600

Book Value = $72,500 - $10,600 = $61,900

Land

Book Value = $175,000 x 70% = $122,500

Note : Land is not depreciated

5 0

2 years ago

I think it is False but I don't think so

MrRa [10]

That is false. The worker can have what ever diet they think is best for them

3 0

3 years ago

Read 2 more answers