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2 years ago

Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of?

1 answer:

7 0

Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of a and b.

Investors are usually different from traders. Investors invest capital for long-term gains, while traders buy and sell securities repeatedly in pursuit of short-term gains. Investors typically generate income by investing capital in either stocks or debt.

So how does an investor choose which stocks to buy?He has two main investment styles: active and passive. Active investors try to outperform the market by buying stocks that they believe are undervalued, with the intention of selling when the stock price rises.

Stock pick. An active portfolio management approach that focuses on a favorable selection of specific stocks rather than broad asset allocation.

Learn more about stock here: brainly.com/question/25818989

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The question is incomplete. Please read below to find the missing content.

Investors select a stock based on the case they expect to receive from that stock. That cash comes in the form of ____.

a. Dividends

b. The future sales price.

c. Interest payments.

d. Commissions.

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The Dean Company has sales of $500,000, and the break-even point in sales dollars of $300,000. What is the company’s margin of s

postnew [5]

Answer:

40%

Explanation:

The Dean company have a sales of $500,000

The break-even point in sales dollar is $300,000

Therefore, the company's margin of safety can be calculated as follows

Margin of safety= Sales-break-even sales/sales

= $500,000-$300,000/$500,000

= $200,000/$500,000

= 0.4×100

= 40%

Hencethe company's margin of safety percentage is 40%

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3 years ago

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3 years ago

The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals i

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Answer:

Pelican's debt ratio 9%

Timberland's debt ratio 50%

The times interest earned ratio for Pelican 57.5

The times interest earned ratio for Timberland 10.45

C is correct as Pelican has 57.5 times interest earned ratio while Timberland only 10.45 times.in other words,earnings of Timberland is more volatile.

D is also correct ,since it has financial leverage of 50.46% as against Pelican financial leverage of 9.17%

The operating margin for Pelican is 14.76% while the operating margin for Timberland is 13.8%

Return on total assets for Pelican is 36.9% and that of its competitor is 34.5%

The return on equity for Pelican 40.6% and that of Timberland is 69.6%

C is correct as Pelican is more profitable than Timberland as shown by the higher net profit margin and return on assets

B is correct, even though Pelican is more profitable (higher net profitmargin), Timberland has a higher ROE than Pelican due to the additional financial leverage risk.

Explanation:

All of the ratios requested for are found in the attached spreadsheet.

Download xlsx

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3 years ago

DeShawn's Detailing is a service that details cars at the customers' homes or places of work. The cost to DeShawn to perform his

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Answer:

A. What is DeShawn's marginal benefit if he sells a basic detailing package?

marginal benefit = marginal revenue - marginal cost = $75 - $40 = $35

B. What is the marginal cost of adding the engine detailing to the basic detailing package?

C. Should DeShawn continue to offer the engine detailing service?

Yes. From an economic point of view, a firm maximizes its accounting profit when marginal revenue = marginal cost, and since DeShawn's marginal cost is still much lower than his marginal revenue, he should continue to offer it. From a marketing point of view, this premium service (it is more expensive) may be something that a certain percent of DeShawn's clients want and if he quitted that service he might lose the clients.

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3 years ago

A solar energy system is to be paid for with a loan in the amount of $2700. The interest rate on the loan is 10.5%/year, and the

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Answer:

The annual payment to the lender is $=\$ 515.35$