Answer:
Market value of the stocks $
Market value of common stocks (3 shares x $40) 120
Market value of preferred stock ( 1 share x $100) 100
Total market value of the stocks 220
Total value of 50 packages of securities
= 50 x $154
= $7,700
The total value of preferred stocks
= $100/$220 x $7,700
= $3,500
The correct answer is A
Explanation:
There is need to calculate the market value of the two stocks by multiplying the units of each stock by their respective current market price. Then, we will determine the total value of the 50 packages of securities, Finally, we will determine the total value to be assigned to preferred stock, which is the market value of preferred stock divided by the total market value multiplied by the total value of 50 packages of securities.
A stock held as part of a portfolio is generally less risky than one held in isolation because a portfolio would be diversified. A personal portfolio may include 20 different stocks. Since all of your money is not invested in one company, if a single stock drops there is still the remaining 19 stocks to increase in value.
When you have one stock held in isolation it is more risky because your stock value is based on one stock. If that stock goes up you make money, but if it goes down you lose. This is unlike a portfolio because you have a variety of stocks to balance out the gains and losses.
Answer:
Option D
Explanation:
In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.
Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.
Answer:
Contribution margin per unit = 120 per unit
Explanation:
Given:
Sales price of a unit = 170
Variable cost per unit = 50
Find:
Contribution margin per unit
Computation:
Contribution margin per unit = Sales price of a unit - Variable cost per unit
Contribution margin per unit = 170 - 50
Contribution margin per unit = 120 per unit
Contribution margin ratio = [Contribution margin per unit / Sales price of a unit]100
Contribution margin ratio = [120 / 170]100
Contribution margin ratio = [0.7058]100
Contribution margin ratio = 70.58% (Approx.)
