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3 years ago

What is the difference between buying shares of stock and buying bonds

Business

1 answer:

Alex73 [517]3 years ago

7 0

Answer:

See explanation section

Explanation:

The difference between buying shares and buying bonds are as follows:

1. Buying stock gives a person to own the company while buying a bond that provides a person to become a debt-holder of the company who can receive interest and get the entire amount in the future.

2. Purchasing stock gives an individual the voting right to elect the board of directors of a company. Buying bonds does not give voting rights to the bondholders.

3. Stock owners can receive the profit in the name of dividends. Bondholders do not receive any profit. Instead, they receive interest annually.

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3 years ago

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3 years ago

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The following income statements were drawn from the annual reports of the Denver Company and the Reno Company: Denver* Reno* Net

Lynna [10]

Answer:

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

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Explanation:

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Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver = ($17,760 ÷ $33,200) × 100 = 53%

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2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

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3 years ago

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Answer: The correct answer is "D. equal to MR, MC, and minimum ATC.".

Explanation: In long-run equilibrium, a purely competitive firm will operate where price <u>is equal to MR, MC, and minimum ATC.</u>

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3 years ago

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