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3 years ago

What is the relationship between saving and investing??

Business

1 answer:

mart [117]3 years ago

5 0

<span>When you invest you have a greater chance of losing your money than when you save.</span>

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The starting point on this grid system for determining latitudinal location is the ____________ , while the starting point for d

aksik [14]

<span>The answers are "Equator" and "Prime Meridian" The grid system gives every point on the earth an address that can be represented as the intersection of two lines, latitude and longitude. The equator is the starting point for measuring latitude (0 degrees latitude), the numbers measure how far north or south of the equator a place is. Longitude shows how far a location is east of the Prime Meridian (0 degrees longitude) , which runs vertically, north and south, right over the British Royal Observatory in Greenwich England, from the North to the South Pole.</span>

3 0

3 years ago

HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

AfilCa [17]

Hey, The answer is true. Hope I helped!!

5 0

3 years ago

The total market value of the equity of ITM is $6 million, and the total value of its debt is $4

timofeeve [1]

Answer:

a. The required rate of return on Okefenokee stock is 16%.

b. WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. The required rate of return on Okefenokee's new venture is Ke = 18 %.

Explanation:

Here the given is,

E = $6 million, D = $4 million, Beta = 1.2,

Rmp = the expected risk premium on the market =10%.

Rf = The Treasury bill rate = 4%

a. The required rate of return on Okefenokee stock,

$Ke = Rf + Beta \times Rmp = 4 + 1.2 \times 10 = 16%$ %.

b. Tax rate, T = 40%

The proportion of debt = $Wd = D / (D + E) = 4 / (6 + 4) = 0.4$

Proportion of equity, We = 1 - Wd = 1 - 0.4 = 0.6

Cost of debt, Kd = Risk-free rate as debt is free of default = 4%

$WACC = Wd \times Kd \times (1 - T) + We\times Ke\\\\ = 0.4 \times4\times (1 - 40) + 0.6 \times 16\\\\ = 10.56%$

WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. Suppose the company wants to diversify into the manufacture of rose-colored glasses. The beta of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on Okefenokee's new venture? (You should assume that the risky project will not enable the firm to issue an additional debt)

$Ke = Rf + Beta \times Rmp\\\\Ke = 4 + 1.4 \times 10 = 18%$

Ke = 18 %.

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2 years ago

Vertical analysis is a tool to evaluate individual financial statement items or a group of items in terms of a specific base amo

mylen [45]

Answer:

The correct answers are revenue; assets.

Explanation:

Just as you can use the vertical analysis applied to the Balance Sheet, you can also analyze the Income Statement, for which exactly the same procedure as for the balance sheet is followed, and the reference value will be sales, since it is due Determine how much a certain concept represents (Sales Cost, Operating Expenses, Non-Operating Expenses, Taxes, Net Profit, etc.) with respect to the total sales.

8 0

2 years ago

A company has the following budgeted information: Cash receipts: $542,000; Beginning cash balance: $10,000; Cash payments (inclu

yKpoI14uk [10]

Answer:

Company A

In order to maintain the desired cash balance, the company will need to:

borrow $58,000

Explanation:

a) Data and Calculations:

Cash receipts: $542,000

Beginning cash balance: $10,000

Cash payments (including interest payments): $560,000

Outstanding loan balance: $100,000

Desired ending cash balance: $50,000

Beginning cash balance: $10,000

Cash receipts: $542,000

Cash available $552,000

Cash payments (including

interest payments): $560,000

Cash balance ($8,000)

Desired ending balance 50,000

Amount to borrow = $58,000

6 0

2 years ago