Answer:
any individual under the age of 18 years. ... This rule is subject to several types of contracts which a minor will be bound by, and his right to repudiate such contracts.
Answer:
<u>Price</u> risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
<u>Reinvestment</u> risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
Which type of risk is more relevant to an investor depends on the investor's <u>investment horizon</u>, which is the period of time an investor plans to hold a particular investment.
When the person uses his personal belongings to change the overall amount of his financial leverage then it will be called Homemade Leverage.
Homemade Leverage was provided by The Modigliani-Miller Theory. This theory assumes an efficient market and it also assumes the absence of corporate taxes and the cost of bankruptcy. Homemade leverage gives the power for investors to borrow on the same terms as the company. So in this way, it can create the effects of corporate leverage.
The advantage of this method is that we can use it to incorporate the cash flows that come from risk-free assets without relying on the findings of the fund manager. This allows us to borrow and also lend at a specific risk-free rate of interest and to build a leveraged accurate return for the company.
Learn more about Homemade Leverage here:
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Given:
projected revenue of each event: 90,000
cost of each event: 40,000
weekly events: 52 events per year
Profit = Revenue - Cost
P = 90,000 - 40,000
P = 50,000 per event
Annual Profit = 50,000 per event * 52 events per year = 2,600,000
