1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maurinko [17]
3 years ago
8

Why is a high-quality bond typically considered a lower-risk investment than a stock? A

Business
1 answer:
blondinia [14]3 years ago
6 0
The answer is an investment-grade bond. A bond is considered speculation review if its FICO assessment is BBB-or higher by Standard and Poor's or Baa3 or higher by Moody's. By and large, they are bonds that are judged by the rating organization as sufficiently likely to meet installment commitments that banks are permitted to put resources into them.
You might be interested in
A well diversified portfolio needs about 3 to 5 stocks from different categories.
Oduvanchick [21]

Answer:

This is false.

Explanation:

Diversification is An investment strategy that includes a mixture of a wide variety of investments from different categories within a portfolio.

A well diversified portfolio does not need 3 to 5 stocks from different categories instead A well-diversified portfolio needs about 20-25 stocks from various categories.

3 0
3 years ago
Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $31.00 per share. The firm'
Setler [38]

Answer:

Cost of external equity= 26.9%

Explanation

<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>

The model can me modified to determined the cost of equity having flotation cost as follows:

Ke = D(1+r )/P(1-f) + g

Ke= Cost of equity

D- current dividend,

D(1+g) - dividend next year

p- price of stock - 31,00$

f - flotation cost - 14%

g- growth rate - 7%

Ke= 5.30/31× (1-0.14)  +  0.07

 = 0.2687997  × 100

= 26.9%

4 0
3 years ago
The CFO of James Jeans Co. has asked you to perform an analysis to assess how the company is performing relative to its two larg
damaskus [11]

The vertical analysis approach that will provide the most effective performance evaluation of James Jeans Co. and its two largest competitors is <u>Option B.</u>

<h3>What is a vertical analysis?</h3>

A vertical analysis is a financial statement analysis with each line item listed as a percentage of the base figure from the financial statement.

For example, the vertical analysis calculates the balance sheet percentage by dividing each asset line item by the total assets.  

<h3>Answer Options:</h3>

A. Review the stock price performance of the three companies over the last several years and the Wall Street Analyst buy/sell recommendations: compare debt ratings: review messages on key business websites and blogs to learn what is being said about the company and competitors.

B. Calculate cost of goods sold, selling and administrative expenses, and net income as a percentage of net sales for James Jeans and the two largest competitors; draw conclusions from these results and highlight similarities and differences.

C. Identify the structure of the sales and marketing team of each company, gather information about customer product reviews, and review product warranty claims to understand the comparative performance.

D. Analyze the size of each company's balance sheet and income statement accounts by calculating how much larger or smaller the competitors are compared to James Jeans Co. summarize observations about what might be the reasons for these size differences.

Thus, the vertical analysis approach that will provide the most effective performance evaluation of James Jeans Co. and its two largest competitors is <u>Option B.</u>

<em>"Calculate the cost of goods sold, selling and administrative expenses, and net income as a percentage of net sales for James Jeans and the two largest competitors; draw conclusions from these results and highlight similarities and differences."</em>

<em />

Learn more about vertical analysis at brainly.com/question/15694796

#SPJ1

8 0
2 years ago
In at least 150 words, analyze the relationships of users and participants in marketing research projects. Examine each group th
AlekseyPX

Answer:

Financial markets offer some solace

Explanation:

Financial markets offer some solace: After tumbling the most in more than two months on Wednesday in the wake of the April consumer price data, the S&P 500 Index jumped on Thursday and Friday. Bond yields also retreated after a surge, suggesting no big fear of breakout inflation.#accelerationism

5 0
3 years ago
What kind of warranty is often offered not through the manufacturer but instead through a third party? a. manufacturer’s warrant
Anit [1.1K]

Answer:

Extended Warranty

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • If the marginal product of labor is increasing, the marginal cost of output must be
    14·1 answer
  • Price involves charging a high price for a product initially then lowering the price over time
    14·2 answers
  • What is the name of the experimental task in which an infant interacts with an adult who first engages in normal social interact
    13·1 answer
  • On January 1 Revis Consulting enters into a contract to complete a cost reduction program for Green Financial over a six-month p
    13·1 answer
  • In 1893, a one-million acre area of the grand canyon national forest reserve was home to an estimated 3,000 rocky mountain mule
    7·1 answer
  • According to the numbers in the article Group of answer choices smoking among adults is elastic because the percent change in pr
    15·1 answer
  • pencer Co. has a $300 petty cash fund. At the end of the first month the accumulated receipts represent 553 for delivery expense
    14·1 answer
  • When deciding on an office layout, a business or organization has to consider all of the following except:
    5·1 answer
  • Managers make assumptions in CVP analysis. These assumptions include: (Check all that apply.) Multiple select question. some uni
    14·1 answer
  • A utility-maximizing consumer buys so as to make ________ for all pairs of goods.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!