All categories

3 years ago

What are equity investments?

2 answers:

7 0

An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains. :)

Rudik [331]3 years ago

4 0

Answer: An equity investment is money that is invested in a company by purchasing shares of that company in the stock market. These shares are typically traded on a stock exchange.

You might be interested in

1. Choose a real or made up example of a company, and describe at least three variable costs the

Softa [21]

Answer:

Let Sanguine Wines Ltd. refer to a hypothetical company for the purpose. Following would constitute Sanguine Wines Ltd's variable costs:

Raw Material or input prices: The raw material or inputs of sanguine wines limited purchases from suppliers such as dried grapes, sugar and the likes. The price of such inputs is prone to seasonal fluctuation and thus variable
The performance related incentive for employees for number of bottles of wine created, would be variable cost as it would vary with the no of bottles produced.
Discount allowed to distributors which varies based upon the number of bottles purchased by them.
Commission paid to wine salesperson which varies with respect to bottles sold.

4 0

3 years ago

M13-9 Inferring Financial Information Using the Current Ratio [LO 13-4] Mystic Laboratories reported total assets of $10,500,000

zaharov [31]

Answer: $6,410,000

Explanation:

The current ratio calculates the ability of a company to meet its short term liabilities.

A current ratio greater than 1 indicates that a company is more able to meet its short term obligations. Mystic Laboratories with a current ratio of 1.3 has a greater ability to meet its short term obligations.

Current ratio = current assets / current liabilities

Total assets = current assets + non current assets

$10,500,000 = current assets + $2,167,000

Current assets = $8,333,000

1.3 = $8,333,000 / current liabilities

Current liabilites = $6,410,000

I hope my answer helps you

7 0

3 years ago

Q7. Which of the following is a necessary condition – something that must occur—for nominal GDP to rise? Explain your answers.

shusha [124]

Answer:

Either the price level or real GDP must increase

Explanation:

Gross Domestic Product (GDP) is used to measure the economic growth, purchasing power, and overall economic health of a country. nominal Gross Domestic Product, measures the value of all final goods and services produced within a country’s borders at current market prices. It takes change in prices and interest rates, inflation and money supply into account when calculating a country’s gross domestic product. Real GDP takes nominal GDP and adjusts for inflation or deflation by comparing and converting prices to a base year’s prices. For nominal GDP to rise there must be increase on either the price level or real GDP.

5 0

3 years ago

An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expect

MakcuM [25]

Answer:

Asset U

Explanation:

Reward-to-volatility ratio for Asset Q = Expected return / standard deviation

Reward-to-volatility ratio for Asset Q = 6.5% / 5.5%

Reward-to-volatility ratio for Asset Q = 1.1818

Reward-to-volatility ratio for Asset U = Expected return / standard deviation

Reward-to-volatility ratio for Asset U = 8.8% / 5.5%

Reward-to-volatility ratio for Asset U = 1.6

Reward-to-volatility ratio for Asset B = Expected return / standard deviation

Reward-to-volatility ratio for Asset B = 8.8% / 6.5%

Reward-to-volatility ratio for Asset B = 1.3538

The investor should prefer Asset U because its has the highest reward to volatility ratio among the three options.

8 0

3 years ago

The current price of xyz stock is $50.00. dividends are expected to grow at 7% indefinitely and the most recent dividend was $1.

muminat

1/50+7 = 9.0 so the answer is 9.0

5 0

3 years ago