Answer:
A. 104%
B. 66.7%
Explanation:
A. Calculation for what would be the percentage return earned
Percentage return =($50-$30-30*60%*7%)/30*60%
Percentage return(20-$18*.07)/18=
Percentage return=1.04*100
Percentage return=104%
Therefore what would be the percentage return earned is 104%
B. Calculation for What would have been the return if the investor had notbought the stock on margin
Percentage return=($50-$30)/$30
Percentage return=$20/$30
Percentage return=66.67 %
Percentage return=66.7% Approximately
Therefore What would have been the return if the investor had notbought the stock on margin is 66.7%
Answer:
Fixed costs that can be avoided by discontinuing the line.
Explanation:
Avoidable costs are those costs which can be eliminated by closing or rejecting a decision under evaluation. These costs are mostly variable coasts which vary with the change in activities. More activity more cost, less activity less cost and no activity no cost.
So fixed costs that can be avoidable by discontinuing the project is the only irrelevant cost between the given options.
Answer:
Bonds
Explanation:
Bonds fit all of Marlon's needs since:
- He can know the interest rate up front, e.g. the coupon rate of the bond, or the market rate if the bond is purchased at a premium or discount.
- Some bonds have a very remote maturity date, up to 30 years (e.g. US securities) and that is a long period of time.
- Even though Marlon can cash his money before the bond matures (he can sell them), it is something that takes a few days and must be done by a broker.
- Bonds are very secure investments, specially US securities which are considered the most secure investment in the world, but even corporate bonds are considered secure. In case the firm goes is liquidated, bondholders receive their money before preferred stockholders and common stockholders.
It is <u>false </u>that a person assumes all risks associated with any activity in which he or she participates. This is not true because one person cannot bear all these risks, especially if there are multiple people involved. They should all face the risks and the consequences of their actions - it shouldn't be just one person, but also the people who are organizing that activity as well as the other participants.
Based upon this deposit, the bank's excess reserves have increased by 90, and if the bank lends these excess reserves, the money supply could eventually grow by as much as an additional 900.