Answer:
Explanation:
When an individual’s current money income exceeds his current consumption desires, hesaves the excess. Rather than keep these savings in his possession, the individual mayconsider it worthwhile to forego immediate possession of the money for a larger futureamount of consumption. This trade-off of present consumption for a higher level of futureconsumption is the essence of investment.An investment is the current commitment of funds for a period of time in order to derivea future flow of funds that will compensate the investor for the time value of money, theexpected rate of inflation over the life of the investment, and provide a premium for theuncertainty associated with this future flow of funds.2.Students in general tend to be borrowers because they are typically not employed so haveno income, but obviously consume and have expenses. The usual intent is to invest themoney borrowed in order to increase their future income stream from employment - i.e.,students expect to receive a better job and higher income due to their investment ineducation.3.In the 20-30 year segment an individual would tend to be a net borrower since he is in arelatively low-income bracket and has several expenditures - automobile, durable goods,etc. In the 30-40 segment again the individual would likely dissave, or borrow, since hisexpenditures would increase with the advent of family life, and conceivably, the purchaseof a house.In the 40-50 segment, the individual would probably be a saver since incomewould have increased substantially with no increase in expenditures. Between the ages of50 and 60 the individual would typically be a strong saver since income would continueto increase and by now the couple would be “empty-nesters.”After this, depending uponwhen the individual retires, the individual would probably be a dissaver as incomedecreases (transition from regular income to income from a pension).4.The saving-borrowing pattern would vary by profession to the extent that compensationpatterns vary by profession. For most white-collar professions (e.g., lawyers) incomewould tend to increase with age. Thus, lawyers would tend to be borrowers in the earlysegments (when income is low) and savers later in life. Alternatively, blue-collarprofessions (e.g., plumbers), where skill is often physical, compensation tends to remainconstant or decline with age. Thus, plumbers would tend to be savers in the earlysegments and dissavers later (when their income declines).5.The difference is because of the definition and measurement of return. In the case of theWSJ, they are only referring to the current dividend yield on common stocks versus thepromised yield on bonds. In the University of Chicago studies, they are talking about thetotal rate of return on common stocks, which is the dividend yield plus the capital gain or
Answer:
Preference dividend = 9% x $65 x 5,700 shares
= $33,345
Dividend paid to ordinary shareholders = $50,000 - $33,345
= $16,655
Explanation:
The dividend paid to preferred stockholders is 9% of the par value multiplied by number of preferred stock outstanding. The dividend paid to common stockholders is the difference between total dividend paid and dividend paid to preferred stock holders.
Answer:
the military is the solution
Answer:
Reject,
Explanation:
When calculating the IRR, I got 16.6%, which is less than the wacc. This means that the rate of return is lower than what it costs 18% wacc.
I think the answer should be reject, less.
Explanation:
CEO of a local alternative energy company is engaged in the process of developing a list of questions that will be used to evaluate her company's internal situation. An internal analysis looks at the factors that are within the organization such as the strengths and weaknesses of the organization. Some typical areas that are considered during the internal analysis are the financial resources like the funding and investment opportunities, physical resources like the company's location, facilities and equipment, and the human resources like the employees, and the target audiences. In the options given above, every option tackles the company's internal situation except for "Is our company competitively stronger or weaker than key rivals?" This question is not meant to assess the internal situation of the company as the question is evaluating the competition involved in the business while comparing other companies to Angie's comoanv.
