All categories

1 year ago

An investment strategy where a higher price is paid for a stock based upon expected returns is:__________

1 answer:

6 0

An investment strategy where a higher price is paid for a stock based upon expected returns is Growth Investing.

Investment is the act of distributing resources into something to generate profits or gain income.

Strategy is a well-known plan to achieve one or extra long-term or typical goals beneath conditions of uncertainty.

Return on investment or go back on fees is a ratio between internet earnings and funding. An excessive ROI means the funding's profits examine favorably to its price. As an overall performance measure, ROI is used to evaluate the efficiency of an investment or to examine the efficiencies of several exceptional investments.

Learn more about Investment here: brainly.com/question/25300925

#SPJ4

You might be interested in

If the YTM on a 20 year T-bond is lower than the YTM on a 3 month T-bill, then, according to the expectations hypothesis theory,

jek_recluse [69]

Answer:

The correct option is C,investors expect future short rates to be lower than the current 3 month interest rate.

Explanation:

The yield to maturity is the effective interest rate on a debt obligation which implies the actual return that investors receive by investing in bonds.

The yield to maturity is different from the coupon interest which is the actual amount of cash receivable by investors periodically.

Specifically,a higher yield on short term T-bill means that investors expect that the future interest rates on long-term dated bonds to be much lower.

This is due to the fact the longer the time to maturity the more uncertain the interest rates in the bond markets become.

6 0

3 years ago

Matthew needed money for some unexpected expenses, so he borrowed $2,587.09 from a friend and agreed to repay the loan in three

Snowcat [4.5K]

Answer:

The agreement is offering an implied interest rate of 10.16%.

Explanation:

Matthew borrowed $2,587.09 from his friend, but he will return $2,850, as 950 x 3 = 2,850.

Therefore, there is an excedent of $262.91, which constitutes an implied interest on the payment of the loan.

As 2,587.09 is the 100% of the loan, we have to know the percent that 262.91 represents in order to know the interest rate. We can know it by using a crossed multiplication:

2,587.09 = 100

262.91 = X

(262.91 x 100) / 2,587.09 = X

26,291 / 2,587.09 = X

10.16 = X

Therefore, the implied interest rate in this loan is of 10.16%.

5 0

3 years ago

Giancarlo has received an inheritance from his rich uncle and is contemplating the purchase of a Suzuki XL7. In an attempt to ma

Effectus [21]

Answer:

Giancarlo’s initial investment in the Suzuki XL7 is $17,122

Explanation:

The computation of the initial investment is shown below:

= Negotiated price of new Suzuki + Taxes and fees charges on purchase of a new car - proceeds from the old car

= $24,675 + $1,732 - $9,285

= $17,122

The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.

8 0

3 years ago

Corporation had net income for 2016 of $ 42 comma 000. GAZ had 16 comma 000 shares of common stock outstanding at the beginning

andrey2020 [161]

Answer:

GAZ's price/earnings ratio is 4.8

Explanation:

In order to calculate GAZ's price/earnings ratio we would have to calculate the following formula:

GAZ's price/earnings ratio=market value per share/earnings per share

market value per share= $ 12

earnings per share=net income- preferred dividend/Average number of common shares

earnings per share=$42,000-$4,500/(16,000+14,000)/2

earnings per share=$2.50

Therefore, GAZ's price/earnings ratio= $ 12/$2.50

GAZ's price/earnings ratio=4.8

GAZ's price/earnings ratio is 4.8

3 0

3 years ago

Using the lower of cost or market, what should the total inventory value be for the following items:_____. Item Quantity Unit Co

Allisa [31]

Answer:

$ 4252 is the lower cost price.

Explanation:

Using lower of cost price or lower of market price :

Item Total cost price Total market value Lower of cost or market price

A $ 1980 $ 2420 $ 1980

B $ 1598 $ 1222 $ 1222

C $ 1050 $ 1176 $ 1050

$ 4252

5 0

3 years ago