If the investor is my client, i will advise him to enter a buy stop order at $40.
<h3>What is the
buy stop order?</h3>
In the share market, these are protective tool that are mainly for short sellers.
Now, as the stock should begin to rise from its current price of $38, once it reaches or exceeds $40, a buy order at the market is entered.
Hence, the stock purchased is used to cover the short position and the investor's profit is the $50 sale price minus the cost of the purchase.
However, because the investor is short term person, the only protective order would be a buy and not a sell.
Therefore, i will advise him to enter a buy stop order at $40
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Answer:
<h2>Spending on infrastructure projects is an example of <u>Discretionary Fiscal Policy</u> aimed at increasing real GDP and employment.</h2>
Explanation:
- A discretionary fiscal policy basically refers to the manipulation or adjustment of various fiscal instruments by the government such as public taxes and government spending.
- The aim of discretionary fiscal policy is to adjust the overall macroeconomic condition in any country based on the existing or current situation or scenario.
- Now,infrastructural spending is part of fiscal policy or instrument to adjust the macroeconomic condition of the country as reflected by necessary modification in the GDP and employment level.Hence, higher infrastructural spending by the government would expectedly increase the residential and commercial construction projects in the country thereby,enhancing the GDP and the employment level in the country and boost the overall economy.
Answer:
why do people feel more compelled to work with a leader who demonstrates responsibility?
People feel more compelled to work with a leader who demonstrate responsibility because such leader leads by example as a matter of fact most people are always ready to work without being forced to as a result of act of willingness displayed by such leader
Explanation:
Answer:
a. Transaction 1
It is not deductible so the Taxable income is $9,000
Transaction 2
It is deductible, taxable income would be;
= 13,500 * ( 1 - Tax)
= 13,500 * ( 1 - 20%)
= $10,800
b. Transaction 1
It is not deductible so the Taxable income is $9,000
Transaction 2
It is deductible, taxable income would be;
= 13,500 * ( 1 - Tax)
= 13,500 * ( 1 - 40%)
= $8,100
Answer:
Using the flow-equity method of valuation the borrowed is $67600,option B.
Explanation:
In order to determine the amount borrowed in executing the project, we make use of the below formula which shows that we are working backwards.
Amount borrowed=present value of cash inflows-levered cash flows
present value of cash inflows=net present value+initial investment
present value of cash inflows=$157000+$640000
present value of cash inflows=$797000
levered cash flows=$729400
Amount borrowed=$797000-$729400
amount borrowed =$67600