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3 years ago

Unnecessary debt, like debt on a credit and store charge cards, can destroy your investment opportunities.

2 answers:

8 0

I can say that the given statement above would be TRUE. What makes this statement true is that, when you have these unnecessary debts, this makes you pay more interest on your debt than you could pay for your investments, thus, ruining your investment opportunities.

grin007 [14]3 years ago

5 0

Answer: Answer is TRUE

Unnecessary debt can destroy our investment opportunities.

Explanation:

For example : It makes you pay more interest on your mortgage when you have these needless loans than you had to pay it from your savings and thus destroy your investment opportunities.

We should always avoid unnecessary debt. when we pay them without need, our savings get exhausted, so that we are not able to make new investments.

Thus the given statement is True.

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Your opportunity cost of taking this course is: a. the net benefit of taking this course. b. the net benefit of the activity you

umka21 [38]

Answer:

Correct option is B.

The net benefit of the activity you would have chosen if you had not taken the course

Explanation:

Your opportunity cost of taking this course is the net benefit of the activity you would have chosen if you had not taken the course

Opportunity cost is what you must sacrifice when you choose an activity. By taking this course, you are sacrificing the benefit you could have obtained from the activity you would have chosen if you had not taken the course.

5 0

3 years ago

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

OverLord2011 [107]

Answer:

Equal to

Explanation:

Financial theory assumes that financial markets are efficient and that there is no information failure in conducting financial transactions. However, this is an assumption and there could, in some instances, be asymmetric information in the form of adverse selection and moral hazards. For example, if managers of a corporation know how well or how poorly their business is doing than stockholders (as organizational performance determines the price of a security), then there would be an information failure or informational inefficency. Also, a potential investor who cannot distinguish between a firm whose security has a high potential for profit and low risks compared to that with a low potential for profit and high risk will be willing to pay a price that lies between the value of stock from bad firms and the value of stock from good firms. This will not augur well for good firms as their stock is underpriced and they will be reluctant to sell.

When the financial market is efficient, investors of stock would be able to earn supernormal returns on their investments. It is therefore neccessary that the price of a corporation's common stock should be equal to the present value estimate of the firm's expected cash flows discounted by it appropriate rate of return.

6 0

3 years ago

Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: ho

zmey [24]

Answer:

Answer 1.

DVD Equipment Set Yoga Mat

Sale in Units 13500 4500 9000

Sale Mix 3 1 2

Sales Mix Ratio = 3:1:2

Answer 2.

Let the Break Even Sales = X Units

Therefore, Linear equation of BEP:

3/6 X (8-4) + 1/6 X (25-15) + 2/6 X (16-9) = 119520 (Fixed Costs)

X = 19920 Units

BEP of

DVD = 19,920 Units X 3/6 = 9960 Units

Equipment Set = 19,920 Units X 1/6 = 3320 Units

Yoga Mat = 19920 Units X 2/6 = 6640 Units

Answer 3.

DVD Equipment Set Yoga Mat Total

Sale in Units 13,500 4,500 9,000 27,000

SP 8 25 16

Sales in $ 108,000 112,500 144,000 364,500

Less: Variable Costs 54,000 67,500 81,000 202,500

Contribution 54,000 45,000 63,000 162,000

Contribution Margin Ratio 50.00% 40.00% 43.75% 44.44%

Contribution Margin Ratio = Contribution / Sales

Overall Break Even Sales Revenue = $119520 (Fixed Costs) / 44.44% (Contribution Margin Ratio)

Overall Break Even Sales Revenue = $268,920

Answer 4.

Margin of Safety = Sales - BES

Margin of Safety = $364,500 - 268920 = $95,580

Explanation:

4 0

3 years ago

If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car CD player, and sells cars

elena55 [62]

Answer:

$20,000

Explanation:

GDP is the market value of all final goods and 

services produced within a country in a given period of time.

The GDP includes only the value of final goods, the value of manufactured automobile in this question, not the value of intermediate goods used in it, the windshield, tires, and others.

Reason: The price of intermediate goods (windshield, tires, CD player) is already included in the final price of $20,000.

Hence, GDP discourage to include these intermediate goods value as it will lead to double counting given that they're already included in final price of $20,000.

3 0

3 years ago

Tracy is thinking of marketing a new energy drink. Her target market will be parents of young children who need an energy boost

lorasvet [3.4K]

Answer:

The correct answer is Generalizability.

Explanation:

The generalizability theory (theory G) allows to measure the reliability of a test by quantifying the importance of each of its sources of variability. The error is redefined, as a condition or facet of measurement, using the generalizability coefficient as a measure to estimate reliability. This approach does not contradict the fundamental approaches of the classical theory of tests, but can be seen as an extension of it.

7 0

3 years ago