Which type of portfolio might a young investor who is not afraid of risk choose?

You are most concerned for the infant who has

Gelneren [198K]

A i think, did btec childcare

8 0

2 years ago

Consider the following two countries. Assume they produce only these two goods. Note that productivity is now measured in how ma

Ainat [17]

Answer:

A. 1/3 computers

B. 0.6 computers

Explanation:

A. The opportunity cost incurred by the US to make cars is the number of computers it would have to give up to make a car.

The US can either make 12 cars or 4 computers. For every car made therefore the US forgoes;

= 4/12

= 1/3 computers.

B. The same logic applies to Japan. They can either make 10 cars or 6 computers.

Their opportunity cost for cars is therefore;

= 6/10

= 0.6 computers

5 0

3 years ago

Mills Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. Company management

Evgen [1.6K]

Answer:

investment on bonds 200 millions

premium on bonds 40 millions

cash 240 millions

to record the purchase of bonds

cash 7 millions

interest revenue 6 millions

premium on bonds 1 million

interest proceeds of december 31th

Balance sheet:

bonds 200

premium 39

net 239

cash 250 millions

investment on bonds 200 millions

premium on bonds 39 millions

gain on sale of invesment 11 millions

to record the sale of bonds

Explanation:

recording the bonds:

acquisition 240

bonds face value (200)

premium 40

It is a premium, as the bonds where purchased at higher price than face value

Interest at December 31th

To calculate the interest, we will calcualte the interest per payment:

7% annual coupon rate /2 payment per year = 3.5% semi-annual rate

5% market rate /2 payment per year = 2.5% semi-annual market rate

cash proceeds: 200 x 3.5% = 7

interest revenue:

carrying value x market rate

240 x 2.5% = 6

amortization 7 - 6 = 1

Value in the balance sheet:

the net value of the bond will be the face value plus the carrying value of the premium

Sale of the bonds:

selling price 250

carrying value of the bonds (239)

gain on sale of bonds 1 1

It is a gain, as the bonds are being sold at a higher price than his carrying value.

7 0

3 years ago

Customers can build their own computers with Dell's online configurator. They simply have to answer a few questions and choose f

Nitella [24]

Answer: Choiceboard

Explanation: A choiceboard may be explained as an online tool usually developed by product makers or manufacturers which affords consumers to make bespoke or custom products by allowing them the flexibility of making personal choices about the type, attribute and specifications they would want their personal product to posses. The choiceboard will contain a list of various options available on each of the specifications a product could have and the customer makes his or her choice allowing them to build a fully customized product.

5 0

2 years ago

Robichau Incorporated reported the following results from last year’s operations: Sales $ 6,300,000 Variable expenses 4,930,000

photoshop1234 [79]

Answer:

Return on Investment = 17%

Explanation:

Return on Investment = Net income from investment / Investment opportunity * 100

Where Net income from investment = (Sales * Contribution margin ratio) - Fixed expenses

Net income = ($1,530,000 * 30%) - $306,000

Net income = $459,000 - $306,000

Net income = $153,000

Return on Investment = $153,000 / $900,000 * 100

Return on Investment = 17%

5 0

3 years ago