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3 years ago

Most investors are risk-averse, which means they:

Business

1 answer:

DochEvi [55]3 years ago

5 0

Answer:

"Require an increase in return for any increase in risk"

Explanation:

A risk-averse investor would not consider the choice to risk $1,000 loss with the possibility of making $50 gain to be the same risk as a choice to risk only $100 to make the same $50 gain.

A risk-averse individual has a low risk tolerance or a high risk aversion. These conservative investors are willing to accept little to no volatility in their investment portfolios. Investors who are looking for "safer" investments typically invest in savings accounts, bonds, dividend growth stocks and certificates of deposit (CDs).

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Which of the following statement is not true about the Project stakeholders?

xxMikexx [17]

I think d is the answer

Explanation:

all stakeholders must not be independent all must work together

4 0

3 years ago

Benoit company produces three products—a, b, and

Lana71 [14]

My answer is: Produce Product C first, then followed by Product A. to maximize contribution margin. Product B will not be produced since the maximum number of pounds has already been used in producing Products C and A.

 PER UNIT
 PRODUCT A B C
 SELLING PRICE 80 62 81
 VARIABLE EXPENSES
 DIRECT MATERIALS 24 18 9
 OTHER VAR EXP. 24 25.4 43.65
 TOTAL VAR EXP 48 43.4 52.65
 CONTRIBUTION MARGIN 32 18.6 28.35
 CM RATIO 0.4 0.3 0.35
 
COMPANY CAN SELL 800 UNITS OF EACH PRODUCT PER MONTH.
 SAME RAW MATERIAL IS USED IN EACH PRODUCT.
 MATERIAL COSTS 3 PER POUND W/ A MAX OF 5,000 POUNDS EACH MONTH
 
PRODUCT DM UNIT COST NO. OF LBS
 A 24 3 8
 B 18 3 6
 C 9 3 3
 PRODUCT NO. OF LBS/UNIT MAX UNITS TOTAL NO. OF LBS
 A 8 800 6400
 B 6 800 4800
 C 3 800 2400
 TOTAL 13600
 LIMITATION: 5,000 POUNDS PER MONTH ONLY.

 required: 
 1. calculate the contribution margin per pound of the constraining resource for each product. 
 2. which orders would you advise the company to accept first, those for a, b, or c? which orders second? third?
 
PLS. SEE ATTACHMENTS FOR MY FULL COMPUTATIONS.

5 0

3 years ago

Your unemployed friend Seymour sent you a test of his electronic cover letter. You see that he is struggling with the appropriat

Ugo [173]

tell him to put less information with more details.

Instead of putting large amounts of small information in a cover letter, he should be putting small amounts of information with smaller details, a cover letter is explaining you and your backround better to the employers to see if you're what they want, and to get to know your backround better. If Seymour puts his little important details of information he will have a better chance at impressing the employers.

4 0

3 years ago

Read 2 more answers

Compensation for top executives (e.g., CEOs and CFOs) has become more variable over time. For example, recent data show that in

Luba_88 [7]

Answer:

Because :- CEOs & CFOs can have significant impacts throughout the entire business, & the type of reward plan will encourage the CFOs to work in a more rational manner.

Explanation:

CEOs & CFOs are a part of upper level of management of an organisation. Effectiveness & Efficiency of their managerial skills is very crucial to management of company. So, to encourage proper management of companies by senior managers, they can be incentivised by mix of fixed & variable salary structure. The variable component of salary as per company performance under CEO or CFO, positively motivates them to improvise their performance, which subsequently improves company performance.

3 0

3 years ago

Green Caterpillar Garden Supplies Inc.'s income statement reports data for its first year of operation. The firm's CEO would lik

sergeinik [125]

Answer:

Green Caterpillar Garden Supplies Inc.

a) Income Statement for Year Ending December 31

Year 1 Year 2 (Forecasted)

Net sales $30,000,000 $37,500,000

Less: Operating costs 19,500,000 24,375,000

Depreciation &amortization expenses 1,200,000 1,200,000

Operating income (or EBIT) $9,300,000 $11,925,000

Less: Interest expense 930,000 1,788,750

Pre-tax income (or EBT) 8,370,000 10,136,250

Less: Taxes (40%) 3,348,000 4,054,500

Earnings after taxes $5,022,000 $6,081,750

Less: Preferred stock dividends 100,000 100,000

Earnings to common shareholders 4,922,000 5,981,750

Less: Common stock dividends 2,008,800 2,432,700

Contribution to retained earnings $2,913,200 $3,549,050

b) In Year 2, if Green Caterpillar has 5,000 shares of preferred stocks issued and outstanding, then each preferred share should expect to receive _ $20 _ in annual dividends.

-If Green Caterpillars has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from _ $12.31 _ in Year 1 to _ $14.95 _ in Year 2.

-Green Caterpillar's before interest, taxes, depreciation and amortization (EBITDA) value changed from _ $10,500,000 _ in Year 1 to _ $13,125,000_ in Year 2.

-It is _ wrong _ to say that Green Caterpillar's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $2,913,200 and $3,549,050, respectively. This is because _ not all_ of the items reported in the income statement involve payments and receipts of cash.

Explanation:

a) The preferred dividend per share = Preferred Dividends divided the number of preferred stock shares.

b) The EPS is the Earnings Per Share and is calculated as Net Income to Common Stockholders divided by the number of common stock shares outstanding.

The operating cost figure may not be based on a cash basis. It could be accrued costs. Similarly, the net sales may as well involve sales on credit, which do not involve cash flows.

8 0

3 years ago