In a case whereby poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year, the risk is poornima most concerned about protecting against is interest reinvestment risk.
<h3>What is
interest reinvestment risk?</h3>
Reinvestment rate risk can be described as the risk that should be considered in the case whereby the investor have the reason to carry out reinvestment in regards with the future cash flows which could come inform of a lower return as a result of the interest rate declines.
It should be that this risk is very important to be taken serious by the investors because any slight mistake can result to very huge lost in the part of the investor and this can bring down there investor in term of finance which is very dangerous for his health as well as other investment that he have outside.
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Answer:
c) No change will occur in the market.
Explanation:
The correct option is : (c) No change will occur in the market
Reason: A price ceiling above the equilibrium price is a non binding price ceiling and it does not affect the market. No change in supply or demand occurs.
Answer:C. Smaller stock have lower volatility than larger stock.
Explanation:
Volatility refers to the prones of a stock price to changes in market conditions. The higher the impact of changes in market conditions on a stock the higher the volatility level and the lower the impact of changes in market conditions on a stock price the lower the volatility. However the size of a stock does not necessarily determine the level of his volatility, a
stock may be small but still have a large volatility level and stock may be large and have low volatility level.
Answer:
57 smartphones per day
Explanation:
contribution margin per each smartphone = $132 - $120 = $12
total daily fixed costs = $684
break even point in units = total fixed costs / contribution margin per unit = $684 / $12 = 57 smartphones per day
break even in $ = 57 x $132 = $7,524 total daily sales
events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.
Answer: Option C.
<u>Explanation:</u>
Accrual basis is a technique for recording bookkeeping exchanges for income when earned and costs when brought about. A key bit of leeway of the collection premise is that it matches incomes with related costs, so the total effect of a business exchange can be seen inside a solitary announcing period.
Accounting method that records incomes and costs when they are brought about, paying little heed to when money is traded. The expression "accrual" alludes to any individual section recording income or cost without a money exchange.
