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2 years ago

Why are shareholders more keen on investing in high-risk projects during times of financial distress?

Business

1 answer:

Phoenix [80]2 years ago

6 0

Answer:

Because the shares price of that company will be reduced that gives shareholders to own more thus owning a greater percentage of the company

Explanation:

Let's say Washer Ltd is high-risk and they have taken a stand to reduce their ordinary share price in order to attract investors, from R6,90 to R3, 90 per share

Instead of the shareholder paying the full price for less shares, he can buy more share for half the amount of money

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A large hospital is having a hard time keeping track of patients' needs as they move among doctors, pharmacies, blood labs,

Goshia [24]

Answer:

Give patients RFID tags to identify their medical records.

Explanation:

3 0

3 years ago

A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's

Umnica [9.8K]

Answer:

break even rate = $31000

ultra break even point = $62000

Explanation:

given data

total fixed costs = $1,612,000

solution

WE FIND HERE FIRST contribution margin that is

contribution margin for regular per unit = $20 - $8

contribution margin = $12

and

contribution margin for ultra = $24 - $ 4

contribution margin for ultra = $20

so if 1 unit of regular is sold

2 unit of ultra will sold here

contribution margin is here

contribution margin = ( $12 × 1 )+ ( $12 × 2 )

contribution margin = $52

and

break even point at commposite rate = total fix cost ÷ contribution margin rate at commposite rate

break even rate = $\frac{1612000}{52}$

break even rate = $31000

and

ultra break even point = 31000 × 2

ultra break even point = $62000

4 0

3 years ago

When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with th

irga5000 [103]

Answer:

When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:

D. Lowest incremental effect

Explanation:

Diluted EPS:

Diluted EPS is known as diluted earning per share which is a method that is used to measure the determine the earning of business per share when all the convertible securities are used.

Convertible securities are the simply those securities which include, warrants, convertible bonds etc.

The formula for calculating diluted EPS is as follow:

Diluted EPS = (Net income - Preferred dividend) / (convertible securities + Outstanding shares)

So, the option d is correct as in the computation of diluted EPS, lowest incremental effect comes first.

6 0

3 years ago

Based on the information just given, what will be Robert’s forecast of PAMC’s growth rate? 7.75% 0.02% 4.50% 3.00%

sergiy2304 [10]

Answer:

the growth rate is 3%

Explanation:

The computation of the PAMC growth rate is shown below:

Price of the stock = Current year dividend ÷ (required rate of return - growth rate)

$16.25 = $0.78 ÷ (0.078 - growth rate)

0.078 - growth rate = 0.048

So, the growth rate is 3%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0

3 years ago

Suppose that the quantity of money in circulation is fixed but the income velocity of money doubles. If real GDP remains at its

Shalnov [3]

Answer:

The equilibrium price level will double.

Explanation:

Suppose that the economy has a money supply of $4 billion and the income velocity of money is 8, the price level will be 4 and the real GDP is $8 billion. The formula we are using is:

Money supply x velocity = price level x real GDP

If the money supply remains the same ($4 billion), the income velocity of money is 16 (it doubles), and the real GDP is $8 billion, then the price level will be:

$4 x 16 = price level x $8

$64 = price level x $8

price level = $64 / $8 = 8

So the price level has doubled to 8.

4 0

3 years ago