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3 years ago

How do stocks and bonds differ?

Business

1 answer:

jenyasd209 [6]3 years ago

5 0

Answer:

The correct answer is letter "B": Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.

Explanation:

Stocks are high-risk investments that can provide profits overnight or can swipe investors' accounts in a matter of seconds. When it comes to inflation, they do not have to deal too much with it. On the other hand, bonds are less risky, almost safe investment vehicles that give investors profits based on the fixed interest rate that the bond pays and is collected by year. Inflation erodes the purchasing power of bonds.

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The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were origina

Sladkaya [172]

Answer:

amount of cash dividend paid = $80000

so correct option is 1. $80,000

Explanation:

given data

common stock = 100,000 shares

shares issued = 45,000

subsequently reaquired = 5,000

dividend= $2 per share

to find out

What is the amount of cash dividends

solution

first we get here no of share outstanding that is

no of share outstanding = shares issued - subsequently reaquired .........1

no of share outstanding = 45000 - 5000

no of share outstanding = 40000 shares

and

now we get amount of cash dividend paid here as

amount of cash dividend paid = outstanding share × dividend share ...........2

amount of cash dividend paid = 40000 × $2

amount of cash dividend paid = $80000

so correct option is 1. $80,000

5 0

3 years ago

In the late 1970s, LarceCo, a tea manufacturing company, entered the market of a developing country called Fantesnia. As there w

Softa [21]

Answer: Counter trade

Explanation: In simple words, counter trade or bilateral trade refers to the situation when two entities exchange goods or services with one another without using any money. This kinds of trade does not use money but can be valued in monetary terms.

In the given case, Large co were trading their product for the product of other company. Both the products have their own market value.

Hence from the above we can conclude that they were engaged in counter trade.

4 0

3 years ago

When most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it, what stage

fiasKO [112]

Answer:

Promotional expenses are those expenses that a company bears to make its product more aware to the consumers. Maturity stage of product life cycle means the product has already been accepted wide spread and is at its peak in respect of sales but will eventually slow down in growth.

Therefore, promotional activities at the maturity stage are done by companies so that the existing customers would not shift their demand to any of other substitute product.

Explanation:

5 0

3 years ago

Use the following bond quotes to answer this question:

Alina [70]

Answer:

a. $247.50

Explanation:

As bonds are semi annual, every 6 months interest payment will be mad

Face value = 1000

Coupon rate = 8.25%

Number of bonds = 6

Interest payment = 1000 * 8.25% * (6/12) * 6

Interest payment = $247.50

So, the amount i will receive as the next interest payment is $247.50.

8 0

3 years ago

A seller did not submit testing information required in the contract to the buyer, and the project manager did not notice it was

rusak2 [61]

Answer:

Since the testing information is a requirement of the contract, the buyer has the right to request for it accordingly and the seller should not refuse unless fraud is implied. The contract does not specify when a waiver of the right to the testing information should become effective.

The court of law should decide in favor of the buyer's right to receive the testing information from the seller.

Explanation:

Contract terms are agreements and promises that must be followed because they are made for consideration to be given and received. If a contract for the sale of goods includes the submission of some information, this later requirement forms part of the contract and exchange of promises for consideration, and they must be respected and fulfilled, unless there is additional agreement specifying some deadline within which the right to such testing information is waived.

7 0

3 years ago