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vivado [14]
3 years ago
15

An investor needs cash to pay some hospital bills. He is willing to use his dividend income to pay the bills but he will not sel

l any stock to do so. He is engaging in________.
a. overconfidence.
b. representativeness.
c. forecast errors.
d. mental accounting.
Business
1 answer:
nikklg [1K]3 years ago
3 0

Answer:

d.mental accounting is the correct answer.

Explanation:

  • An investor is engaging in mental accounting because mental accounting occurs when someone puts their cash into separate sections based on personal criteria.
  • The mental accounting concept was developed by Richard H. Thaler in the year 1999 that concerned with budgeting and categorizing the investments.
  • Mental accounting motivates people to take irrational expenditure determination.
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If company A has higher TEI than company B, then company A has than company B
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Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio is .65. The flotation cost fo
elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

Debt = 0.65

Weight = 39.39%

Cost for debt = 2%

Product = 39.39% × 2%

= 0.3939 × 0.02

= 0.007878

Equity = 1.00

Weight = 60.61%

Cost for equity = 6%

Product = 60.61% × 6%

= 0.6061 × 0.06

= 0.036366

Weighted average floatation cost:

= 0.007878 + 0.036366

= 0.044244

= 4.42%

The true cost of the building will then be:

= Funds needed / (1 - Floatation cost)

= $43,000,000 / (1 - 0.044244)

= $43,000,000 / 0.955756

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6 0
3 years ago
The following information relates to a company’s accounts receivable:
notka56 [123]

Answer:

1. $31,000

2. $40,000

Explanation:

1. Computation of bad debt expenses for the year

Bad debt expenses = Credit sales × Bad debts expenses

= $1,550,000 × 2%

= $31,000

2. Computation of year end balance

Year end balance = Beginning balance + Bad debt expense - Written off

= $31,000 + $31,000 - $22,000

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Therefore for computing the bad debt expenses and year end balance we simply applied the above formula.

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3 years ago
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An easy-to-use decision support system that specifically supports strategic decision making is called executive support system.

A decision support system is one software that helps to make effective decisions with providing various alternatives of the solution to the problems addressed.

Strategic decision making is a process that provide an overall decision over the edge gaining an extra advantage for the firm analysing the decisions taken and the impact over the organisation. Wrong decisions taken at the wrong time may result in specifically driven decisions.

To learn more about decision support system here,

brainly.com/question/14279526

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4 0
1 year ago
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