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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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Buckette co. owned 60% of shuvelle corp. and 40% of tayle corp., and shuvelle owned 35% of tayle. what is this pattern of owners

zzz [600]

Buckette co. owned 60% of shuvelle corp. and 40% of tayle corp., and shuvelle owned 35% of tayle.

This pattern of ownership is called a connecting Affiliation. This a type of mutual owner ship, like many people have their family business and have shares in the business. If a company of someone, who has his son and grandson and they are also have shares in that company or owned by percentage, this is mutual ownership and the pattern is connecting affiliation.

6 0

3 years ago

You buy 50 stocks of Company A, 30 of Company B, and 20 of Company C. The annual returns of these companies are 8%, 12%, and 10%

bearhunter [10]

Answer:

Average return for one year is 9.6 %

Explanation:

Computation of average return

Lets assume the cost of each share to be 100

Opening Growth Closing

Value % Value

Company A 50 % at 100 5,000 8 % 5,400

Company B 30 % at 100 3,000 12 % 3,360

Company C 20 % at 100 2,000 10 % 2,200

Total values 10,000 10,960

Increase in value over base divided by base equals the average return

10,960 - 10,000 = 960/ 10000 = 9.6 % average return

3 0

4 years ago

Question 1 of 3 Freshmart, Inc., began operations this year. The company produced 1,000 units and sold 1,000 units at a selling

inessss [21]

Answer:

$20,000

Explanation:

Please see attachment .

8 0

3 years ago

The local government decides to impose a sales tax on some selected items. On item X the final prices increases almost the full

Aloiza [94]

Answer:

It isn't a violation of the law of demand. It is as a result of the elasticity of demand.

A tax is a compulsory sum levied on a good or service. Taxes increases the price of products. In determining whom should bear the greater burden of the tax between the consumer and the seller, elasticities are usually considered. The party with either a relatively inelastic supply or demand bears the greater burden of tax while the party with the more elastic demand or supply bears less burden of tax.

Demand (supply) is elastic if a small change in price has a greater effect on the quantity demanded (supplied).

Demand (supply) is inelastic if a small change in price has little or no effect on the quantity demanded (supplied).

For good X, consumers have an inelastic demand so they bear more of the tax Burden. As a result of the tax, price increases, yet the quantity demanded doesn't change. Therefore, the total revenue would rise.

For good Y, consumers have an elastic demand. Therefore, they bear less burden of tax. As a result of the increase in price, the quantity demanded falls and total revenue falls.

Explanation:

5 0

3 years ago

Tamarisk, Inc. began operations on April 1 by issuing 51,000 shares of $4 par value common stock for cash at $20 per share. On A

Digiron [165]

Answer:

Tamarisk, Inc.

Journal Entries:

April 1:

Debit Cash Account $1,020,000

Credit Common Stock $204,000

Credit Paid-in Capital In Excess $816,000

To record the issue of 51,000 $4 par value common stock shares at $20 per share.

April 19:

Debit Organization Expense $26,300

Credit Common Stock $8,000

Credit Paid-in Capital In Excess - Common Stock $18,300

To record the issue of 2,000 shares in settlement of attorneys' organization costs.

April 19:

Debit Cash Account $5,400

Credit Preferred Stock $1,800

Credit Paid-in Capital In Excess -Preferred Stock $3,600

To record the issue of 900 shares of $2 par value preferred stock for $6 cash.

Explanation:

Tamarisk, Inc. uses the general journal entries to record business transactions as they occur on a daily basis. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.

4 0

3 years ago