1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dafna1 [17]
3 years ago
13

What is true about investment and risk

Business
1 answer:
scZoUnD [109]3 years ago
5 0
Investing money is always good when the stock market is good
You might be interested in
Approximately what is the expected dollar rate of return on euro deposits if today's exchange rate is $1.18 per euro, next year'
noname [10]

Answer:

Dollar rate of return = 15.5%

Explanation:

<em>The expected dollar rate would be the dollar equivalent of the future value of the Euro deposit converted at the exchange rate applicable in a years tim</em>e .

The following steps would suffice

<em>Step 1: Future value of 1 Euro</em>

Future value of 1 Euro at 5% p.a = 1.05 Euro

<em>Step 2: Dollar equivalent of the Euro future value</em>

The Dollar equivalent of 1.05 Euro = 1.05× 1.10=1.155

<em>Step 3: The Dollar rate of return</em>

Dollar rate of return = Future value of deposit($)/initial deposit - 1

                                = (1.155/1) - 1 × 100

                               = 15.5%

Dollar rate of return = 15.5%

4 0
3 years ago
Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management pl
LUCKY_DIMON [66]

Answer:

Icarus total value: 478,459,899

Explanation:

We will calcualte the WACC to know the cost of capital for the company:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.14

Equity weight 0.79

Kd 0.07

Debt Weight 0.21

t 0.4

WACC = 0.14(0.79) + 0.07(1-0.4)(0.21)

WACC 11.94200%

Now we calcualte the value of the company:

\frac{FCF}{return-growth} = Intrinsic \: Value

59,000,000

<u> (21,000,000) </u>

38,000,000 Free Cash flow ofthe Firm

\frac{38,000,000}{0.11942-0.04} = Intrinsic \: Value

\frac{38,000,000}{0,07942} = Intrinsic \: Value

Value: 478.468.899

7 0
3 years ago
Which of the following would most likely negatively affect a person's net worth?
dangina [55]
A. An income of 25,000 annually is not enough to sustain a household and creditors would be hesitant to loan money to someone without resources to easily repay it.
8 0
2 years ago
Orange Superstore is largely customer centric and economical in its methods. The store sells the best quality products at prices
balandron [24]

Answer:

The correct answer is letter "D": cost advantage strategy.

Explanation:

Cost advantage strategy is a technique implemented by companies to provide equal benefits to consumers at a lower price than competitors. Firms achieve this practice by maximizing the utilization of technology, processes, and resources. If a company implements and sustains operations with a cost advantage strategy it is said it has obtained a comparative advantage.

7 0
3 years ago
Since public relations communications are typically perceived as _____, they are not subject to the problems of clutter that are
denis23 [38]

Answer:

news items

Explanation:

Public relations refers to the communication that the company's have with the public through media outlets, which is why they are perceived as news items. This being the case, the public sees this news item and pays attention to this alone, as opposed to other promotional communication methods such as newspapers and articles where various information is cluttered together making it difficult to focus on one thing alone.

7 0
3 years ago
Other questions:
  • Why is leasing a car is a bad idea
    10·2 answers
  • If government policy allows a country's currency to be determined in the exchange rate market, then that currency will be subjec
    7·1 answer
  • What are the implications of sharing confidential material information?
    12·1 answer
  • When market equilibrium occurs, quantity demanded is equal to quantity supplied, which means that both sellers and buyers get wh
    13·1 answer
  • If not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price level leaves some firms w
    11·1 answer
  • Farber Company produces its product in three departments, Prepping, Machining, and Finishing. A customer recently returned a def
    8·1 answer
  • In a period of increasing for housing, would you expect housing prices to rise more in Miami suburbs, which had room for expansi
    13·1 answer
  • The Smiths are saving money for a down payment on a house. The Smiths have $25,000 in cash, and they estimate that in 5 years th
    9·1 answer
  • Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 million bottles of wine were sold ev
    14·1 answer
  • 2.3 explain the importance of an action plan​
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!