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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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An analyst in the corporate finance department at Chase Manhattan Bank has been assigned to an interdepartmental project involvi

marissa [1.9K]

This sort of organizational structure is called a matrix structure.

<u>Explanation:</u>

The representation of a corporation in which monitoring interactions are defined as a grid, or matrix, instead of in conventional hierarchies is understood as a matrix organizational framework. In another terms, workers have multiple responsibilities to report-usually both to a functional boss and to a manager of commodity. Here analyst at Chase Manhattan Bank's corporate finance division has been allocated to an interdepartmental project involving a large client. Thus he need to answer two separate bosses from his department and project manager.

5 0

3 years ago

Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution

lawyer [7]

Answer:

North West South

Contribution margin $300,300 $499,000 $399,200

Controllable margin $139,700 $360,600 $209,900

Average operating assets $997,857 $1,567,826 $1,499,286

Minimum rate of return 13% 14% 9%

return on investment (ROI) = controllable margin / average operating assets

North's ROI = $139,700 / $997,857 = 14%

West's ROI = $360,600 / $1,567,826 = 23%

South's ROI = $209,900 / $1,499,286 = 14%

residual income = controllable margin - (average operating assets x minimum rate of return)

North's RI = $139,700 - ($997,857 x 13%) = $9,978.59

West's RI = $360,600 - ($1,567,826 x 14%) = $141,104.36

South's RI = $209,900 - ($1,499,286 x 9%) = $74,964.26

(1) If ROI is used to measure performance, which division or divisions will probably make the additional investment?

North and South divisions should probably make the additional investments since their current ROI is less than 16%

(2) If residual income is used to measure performance, which division or divisions will probably make the additional investment?

All the divisions since their minimum required rate of return is less than 16%.

6 0

3 years ago

You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the expected returns on these sto

Luden [163]

Answer:

12.5%

Explanation:

A portfolio has $2,800 invested in stock A

$3,900 is invested in stock B

The expected return of stock A is 9%

= 9/100

= 0.09

The expected return of stock B is 15%

= 15/100

= 0.15

The first step is to calculate the total value

= $2,800+$3,900

= $6,700

Therefore, the expected return on the portfolio can be calculated as follows

= (2,800/6,700)×0.09 + (3,900/6,700)×0.15

= 0.4179×0.09 + 0.5820×0.15

= 0.03761 + 0.0873

= 0.1249×100

= 12.5%

Hence the expected return on the portfolio is 12.5%

7 0

3 years ago

Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is a

alexdok [17]

Answer:

75 shares

Explanation:

In this specific scenario, it seems that Kevin is treated to 75 shares prior to the redemption. This is calculated by adding the 50 shares that Kevin holds directly prior to the redemption itself as well as the 25 extra shares that are held by AMI. These 25 shares are 50% of the total 50 shares that AMI holds since Kevin is a 50% partner.

4 0

3 years ago

Tom's Textiles shipped the wrong material to a customer, who refused to accept the order. This is an example of a:-Sales revenue

Angelina_Jolie [31]

Answer:

Sales return

Explanation:

Sales return when a customer is not satisfied with a product, refuses to accept the order and expects to receive back the whole amount of money he paid for it.

Tom's Textiles are at wrong here as they shipped the wrong material to a customer. The customer is allowed not to accept the order and all the money he paid must be reimbursed to him. The company should apologize for the mistake in a pleasant manner, as mistakes happen everyday and can be corrected quickly and efficiently.

3 0

3 years ago