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3 years ago

Which of the following best describes the purpose of making an investment

Business

1 answer:

LUCKY_DIMON [66]3 years ago

3 0

Answer:

b.) to use money to make more money

Explanation:

The correct reason for making investments would be to use money to make more more money.

A financial investment represents the act of allocating money to a process or an item in order to reap profit or generate income in the short term, the long term, or both.

An investment can be in the form of purchased goods or services that can later be sold at a higher amount. It can also be an item or service that will be yielding immediate income while preserving all or parts of its original value.

The money made on an investment is referred to as gains o returns.

The correct option is b.

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There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generat

sattari [20]

Answer:

8.00%

Explanation:

The return of the 298 diaries can be computed as the profit generated divided by the amount invested initially.

percentage rate of return=profit generated/amount invested

profit generated is $24

amount invested is $300

percentage rate of return=$24/$300

percentage rate of return=8.00%

6 0

3 years ago

On December 31, 2018, Adelphi Corporation has outstanding 500 shares of $100 par value, 4% cumulative and nonparticipating prefe

alexandr402 [8]

Answer:

$5.50 dividend per share to common stock

Explanation:

In case a company has cumulative preference shares then the company has to pay preference dividend in arrears

Here, preference dividend was not paid in the year 2017

Preference dividend for 2017 = 500 $\times$ $100 $\times$ 4%

= $2,000

Since the dividend is paid in between the year 2018, dividend is paid for the year 2017 and not for 2018 thus preference dividend is for a year, only for 2017

Therefore, dividend to common equity = $35,000 - $2,000 = $33,000

Dividend per share = $33,000/6,000 = $5.50 per share

6 0

3 years ago

Which of the following are true?

laiz [17]

Answer:

c. Payback is the amount of time to recover the initial investment. No discounting occurs and all cash flows after the payback period are not accounted for. The rule is intuitive and used by small business owners

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested. The NPV does account for all cash flows as well as time value of money.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested . The IRR does account for all cash flows.

The discounted payback period discounts cash flows

3 0

3 years ago

1. Explain the characteristics of business.

r-ruslan [8.4K]

work, hard work, employees,gain/profit

8 0

3 years ago

Rachel's Designs has 1,800 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining

Liono4ka [1.6K]

Answer:

Out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders

Explanation:

Given the information:

Rachel's Designs has 1,800 shares of 5%, $50 par value

The company plans to pay total dividends of $15,000 in 2021

For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:

= Number of shares × par value per share × dividend rate

= 1,800*$50*5%

= $4,500

Since in 2019 and 2020 the dividend is not paid

The dividend arrears for 2019 and 2020 would be:

= $4,500 + $4,500

= $9000

=> The total dividend is:

= $4,500 + $9000

= $13,500

So, for the common stockholder, it is

= $15,000 - $13,500

= $1500

Hence, out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders

7 0

3 years ago