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3 years ago

Goods that that are normally consumed together, like peanut butter and jelly, are what kind of goods?

1 answer:

7 0

Goods that are normally consumed together are known as 'Complimentary Goods' i.e. they compliment one another.

Other examples include toothbrush and toothpaste or Car and Gasoline.

Car and Gasoline is a classic example of complementary goods since the increase or decrease in the demand for one product has a direct impact on the other.

For example, when Gasoline prices start to decline, there is generally an upward trend in the purchase of new cars and vice versa.

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The legal definition of "small business" varies by country and by industry. In the United States, the Small Business Administrat

tamaranim1 [39]

Answer:

Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.

Explanation:

1. Better technology for the business.

Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.

2. Better capital management.

Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.

3. Tax benefits

Leasing is tax deductible. Reducing the fiscal pressure over the small business.

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3 years ago

Which type of fall is responsible for the highest percentage of overall deaths in construction

Finger [1]

The answer to this is roofs. Hopes it helps

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3 years ago

Read 2 more answers

A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an

masya89 [10]

Answer: Option 3. Warehousing

Explanation: Warehousing can simply be defined as a situation whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market and furthermore, "warehousing" happens when individual loans are bundled, often with a common element such as the size of the mortgage or credit worthiness of the borrowers, and sold as a single unit.

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3 years ago

Analyzing and Distributing Cash Dividends to Preferred and Common Stocks Potter Company has outstanding 16,000 shares of $60 par

blondinia [14]

Answer:

Year 1

Preferred Stock Dividend = $ 0

Common Stock Dividend = $0

Year 2

Preferred Stock Dividend = $96,000

Common Stock Dividend = $164,000

Year 3

Preferred Stock Dividend = $48,000

Common Stock Dividend = $0

Explanation:

Preferred Stock has preference when it comes to payments of dividends. The remainder of the dividends will then be paid to Common Stock Holders after distributions have been made to Preference Stock Holders.

Then, If preferred stock is cumulative, this means all outstanding preferred stock dividends not paid are not waived, but are paid up in the year that the cash for dividend is available.

Preferred stock dividend is fixed calculated as :

Preferred Stock Dividend = 16,000 share x $60 x 5% = $48,000

thus

Cash dividends paid to each class of stock in each of the three years will be determined as :

Year 1

Preferred Stock Dividend = $ 0 , but $48,000 carried over to next year.

Common Stock Dividend = $0

Year 2

Preferred Stock Dividend = $48,000 (current year) + $48,000 (previous year) = $96,000

Common Stock Dividend = $260,000 - $96,000 = $164,000

Year 3

Preferred Stock Dividend = $48,000

Common Stock Dividend = $0

5 0

3 years ago

1.Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%.

kenny6666 [7]

Answer:

Explanation:

According to the CAPM model

Fair return = Risk-free rate of return + (Beta × Market Premium)

For $1 discount store:

Expected return = 4% +(1.5 × 6%)

Expected return = 0.04 + (1.5 × 0.06)

Expected return = 0.04 + 0.09

Expected return = 0.13

Expected return = 13%

For everything $5

Expected Return = 4% + (1 × 6%)

Expected return = 0.04 + (1 × 0.06)

Expected return = 0.04 + 0.06

Expected return = 0.10

Expected return = 10%

From the above calculation;

For $1 discount store:

Since the expected return is greater than the forecasted return at 12%.

Thus, it is overpriced.

For everything $5

Here, it is obvious from the above calculation that the expected return is lesser than the forecasted return at 11%.

Therefore, it is underpriced.

3) Beta can be defined as the security change that takes place due to market functuations. Thus, Beta manages the systematic risk associated with firms. From the information given, Kaskin Inc. has a more systematic risk(beta) than Quinn Inc. Thus, option A is the most accurate.

To first find the growth rate by using CAPM model.

Required return = Risk free return + $\beta$ (market return - risk free return)

Required return = 0.08 + 1(0.18 - 0.08)

Required return = 18%

Using the formula:

Required return = (next year dividend/current price) + growth rate

18% = (9/100) + g

0.18 = 0.09 g

g = 0.09

Growth rate g = 9%

To determine the price at year 1; we have:

= $year \ 1 \ dividend \times \dfrac{1+g}{ke-g}$

$= 9 \times \dfrac{1+0.09}{0.18 - 0.09}$

= $109.00

Therefore, the investor can earn a profit of $9 after selling the stock for $109 at the end of the year 1.

According to beta

For portfolio A.

Risk premium per unit = (21 - 8)%/1.3

Risk premium per unit = (0.21 - 0.08)/1.3

Risk premium per unit = 0.1

Risk premium per unit = 10%

For portfolio B.

Risk premium per unit = (17 - 8)%/0.7

Risk premium per unit = (0.17 - 0.08)/0.7

Risk premium per unit = 0.1286

Risk premium per unit = 12.86%

From above, it is clear that the risk associated with portfolio B is lesser compared to portfolio A.

Thus; the correct option is b. A; B

4 0

3 years ago