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Katena32 [7]
4 years ago
13

Why was stock bought on margin considered a risky investment?

Business
1 answer:
Andreas93 [3]4 years ago
7 0
Stock bought on margin considered a risky investment because investors purchased the stocks with little cash down; if the price dropped the investor had to repay the loan. In investment the higher the risk the higher the return, it will be beneficial for the investors but more risky. 
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Setrakian Industries needs to raise $71.8 million to fund a new project. The company will sell bonds that have a coupon rate of
Harlamova29_29 [7]

Answer:

39,183  bonds

Explanation:

In order to determine the number of bonds that must be sold to realize cash of $71.8 million,the price per bond needs to be established using pv formula in excel as found below:

=-pv(rate,nper,pmt,fv)

rate is yield to maturity of  6.46% divided by 2

nper is the number of coupon payments which is 25 years multiplied by 2 i.e 50

pmt is the amount of semiannual coupon  i.e $2000*5.78%*6/12=$57.8

fv is the face value of $2000 per bond

=-pv(6.46%/2,50,57.8,2000)=$ 1,832.43  

number of bonds to be issued=$71,800,000/$ 1,832.43  = 39,183  bonds

5 0
4 years ago
Using the indirect method, the deduction from net income in calculating net cash flow from operating activities is...
Taya2010 [7]
Google might be able to help you out with the answer
6 0
3 years ago
The project plan is supported by:
TiliK225 [7]

Answer:

3. The work breakdown structure, the work packages, the budget and the schedule.

Explanation:

Supporting plans for the Project plan includes:

  • Resource plans
  • Communication Plans
  • Risk management plans
  • Quality plans
  • Budget
  • Procurement plans
  • Scope
  • Delivery schedule

Based on this we can say that option 3 is correct since it includes budget & schedules.

5 0
3 years ago
As a sole proprietor, what are the ways in which you can raise money to establish your business, and make it grow?
kolezko [41]

Answer:

Take out a small business loan.

Explanation:

A small loan is a way, based on your credit, to establish a way to raise money.

3 0
3 years ago
All of the following statements regarding long-term liabilities are true except?
Jlenok [28]

Answer:

C. Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.

Explanation:

The liabilities are the responsibility with regard to the amount that is borrowed by someone from any other person or financial institution. It is a responsibility of a person to return the borrowed amount within the prescribed time along with the interest. Its time period is more than one year

Based on the given options, the option A, B and D are correct but option D is not correct as they have the specified date

Hence, the option C is correct

6 0
3 years ago
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