Answer:
True
Explanation:
The statement is true; companies usually attain extra financing either by debt or equity (Preferred stock or common stock). Organisations for the most part have a decision with respect to whether to look for Preferred stock, common stock or Debt financing. The decision frequently relies on which source of financing is most effectively available for the organisation. Firms and organisation use that extra funds from stock to invest in new ventures and to buy new machinery, which increases the overall assets of the company.
Answer:
Expected rate of return on stock is 14.86%
Explanation:
The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,
rE = pA * rA + pB * rB + ... + pN * rN
Where,
- pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenario
- rA, rB, ... represents the return in scenario A, B and so on
rE = 0.21 * 0.2 + 0.72 * 0.15 + 0.07 * -0.02
rE = 0.1486 or 14.86%
Answer:
The correct answer is option i.
Explanation:
A firm is operating in a perfectly competitive market.
The firm is selling 200 units of output.
The price of each unit of output is $3.
In a perfectly competitive market, a single firm faces a horizontal line demand curve. This horizontal line represents demand, price line, average revenue, and marginal revenue.
So if the price is $3, it implies that the marginal revenue and average revenue is also equal to $3.
The total revenue is $600.
Answer:
D) Theoretical reason
Explanation:
Theoretical reason is the pursuit of truth, knowledge and wisdom. It is the reason that leads to cognition. According to this belief, science is the ultimate means to truth. By following theoretical reason, we are in search of the highest standard for what we should believe and live by.
Answer:
Explanation:
In a scenario such as this one, the broker-dealer is not required to disclose whether any guarantee of growth was made by the representative to induce the giving of the testimonial. This is backed by the FINRA rule on testimonials used in communications which states the following:
“Retail communications or correspondence providing any testimonial concerning the investment advice or investment performance of a member or its products must prominently disclose the following:
- The fact that the testimonial may not be representative of the experience of other customers.
- The fact that the testimonial is no guarantee of future performance or success.
- If more than $100 in value is paid for the testimonial, the fact that it is a paid testimonial.”
