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3 years ago

Buying several different investment alternatives to spread the risk helps an investor

1 answer:

3 0

Buying several different investment alternatives to spread the risk helps an investor achieve diversification. The correct option among all the options that are given in the question is the last option or option "D". By diversifying the investment, a person can earn less, but will never loose all his investments in one shot.

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If US workers can produce everything in less time than Mexican workers, it is not possible for the US to gain from trade with Me

Brums [2.3K]

Answer:

False

Explanation:

False because the theory of comparative advantage applies

5 0

4 years ago

A firm has a weighted average cost of capital of 11.68 percent and a cost of equity of 15.5 percent. The debt-equity ratio is 0.

asambeis [7]

The firms Cost of Debt is 9.62%.

Data and Calculations:

Weighted average cost of capital = 11.68%

Cost of equity = 15.5%

Debt-Equity Ratio = 0.65

Without taxes, the firm's Weighted Cost of Debt (WACC) = WACC - Weighted Cost of Equity

= 11.68% - (15.5% (1 - 0.65)

= 11.68% - 5.425%

= 6.255%

Unweighted cost of debt = 6.255%/0.65

= 9.62%

Thus, the firm's cost of debt is 9.62% while the weighted cost of debt is 6.255%.

Learn more: brainly.com/question/23044852

6 0

2 years ago

Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a

aleksklad [387]

Answer:

5.01%

Explanation:

The bond nominal yield to call is 5.01%

4 0

4 years ago

Read 2 more answers

PB8.

Maurinko [17]

Answer:

Products Selling price Unit variable cost

$ $

Junior 50 15

Adult 75 25

Expert 110 60

Total 235 100

The sales price per composite unit = $235

The contribution margin per composite unit

= Composite selling price - Composite unit variable cost

= $235 - $100

= $135

Break-even point in units

= Fixed cost

Contribution per unit

= $114,750

$135

= 850 units

Break-even point in dollars

= Break-even point in units x Composite selling price

= 850 units x $235

= $199,750

Income Statement

Total contribution ($135 x 850 units) 114,750

Less: Fixed cost 114,750

Net profit 0

Explanation:

Sales price per composite unit is the aggregate of all the selling prices.

Contribution margin per composite unit equals composite selling price minus composite unit variable cost.

Break-even point in units is fixed cost divided per composite contribution margin per unit.

Break-even point in dollars equal break-even point in units multiplied by selling price.

Income statement is prepared by deducting the total fixed cost from the total contribution.

4 0

3 years ago

Suppose Ruston Company has the following results related to cash flows for 2018: Increase in Debt of $700,000 Dividends Paid of

AveGali [126]

Answer:

Cash flow generated from financing activities 400,000

Cash flow used in Investing activities 7,800,000

Explanation:

700,000 debt receive

-500,000 dividends paid

200,000 other adjustment on Financing

400,000 TOTAL CASH GENERATED

-8,300,000 purchase of PPE

500,000 other adjustment on Inventing

-7,800,000 TOTAL CASH USED

Notice: There is no hint about the adjustment being related as negative, so it should be assuem are positive cashflow.

5 0

3 years ago