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WARRIOR [948]
4 years ago
8

Having just returned from the war in Afghanistan, David has $25,000 in his savings account. His girlfriend suggests that he talk

with an investment advisor and let his money "make more money." David has his eye on a new Ford truck, but realistically he knows that his old Jeep Cherokee will probably last another four years, at which time he will definitely need this money as a down payment on the purchase of something new. He knows he may have other needs as well. David should buy high-growth stock with his funds because even though they are risky, they also have the greatest potential of bringing in a better return on his investment. True False
Business
1 answer:
nexus9112 [7]4 years ago
7 0

Answer:

The correct answer is FALSE.

  • First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
  • Second, high growth stock are also
  1. high risk
  2. they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.

Although they are high risk, they also have great advantages such as:

  1. High growth rate: this means if all goes well David will enjoy a good return on his investment;
  2. It's also a way to protect his money from erosion by inflation

What can David do?

Subject to the advise of a professional investment professional

  1. David needs to take into consideration his immediate needs, set aside some funds to take care of that.
  2. Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
  3. Start a small business by the side or get a job in the interim as he continues with his new life.

Cheers!

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Marsh Corporation purchased a machine on July 1, 2015, for $1,500,000. The machine was estimated to have a useful life of 10 yea
lesya692 [45]

Answer:

$229,200

Explanation:

The carrying value of the machine as of December 31, 2017, was $1,500,000 (purchase cost) - $354,000 (accumulated depreciation) = $1,146,000.

Since the machine's useful remaining life was reduced by 3 years, the depreciation amount should reflect this. The remaining useful life of the machine is 5 years (2018 - 2022), so the company can increase the depreciation expense per year to $1,146,000 / 5 =  $229,200.

That way at the end of 2022 the carrying value will be $0, since the machine has no salvage value.

4 0
3 years ago
Since the end of World War I, the U.S. has almost always had rising prices and an upward trend in real GDP To explain this
Pavel [41]

Answer:

a. both aggregate demand and long-run aggregate supply must be shifting right, and aggregate demand must be shifting farther

Explanation:

The statement that best explains rising prices and an upward trend in real GDP is that "both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther."

The long-run aggregate supply shift to the right shows rising prices over the years. This is true because the higher the cost of commodities, the higher the quantity supplied.

Also, the farther shift of the aggregate demand shows there is an upward trend in real GDP. This is also true because upwards in GDP shows an increase in wages and thereby leading to the rise in demands.

8 0
3 years ago
True or False: Your landlord, the over of your rental property, has the right to enter your apartment, any time he wants to
weeeeeb [17]

Answer:

false

Explanation:

he/she is not allowed to enter at any time because he/she does not have the right to enter the home if you are not there.

5 0
3 years ago
a. In 2018, manufacturing workers in the United States earned average compensation of $21.86 per hour. That same year, manufactu
Agata [3.3K]

Answer:

a. The correct option is that U.S. manufacturers can possibly compete if U.S. workers are more productive.

b. The correct option is that all manufacturing is not done in Mexico and other low-wage countries because of trade barriers.

Explanation:

a. U.S. manufacturers can possibly compete if

A worker or labor is said to be more productive if it produces or able to produce larger amounts of goods than the other workers or labors.

If the U.S. workers are more productive than the workers in Mexico, the labor cost per unit of goods produced in the US will be lower than the labor cost per unit of goods in Mexico.

Therefore, the correct option is that U.S. manufacturers can possibly compete if U.S. workers are more productive.

b. All manufacturing is not done in Mexico and other low-wage countries because

Trade barriers are restrictions on international trade imposed by the government.

When a country imposes trade barriers, some goods will not be imported into that country even if they are cheaper in terms of average compensation per hour for manufacturing workers than the locally produced goods. As a result, some of the goods have to be manufactured in the country where average compensation per hour for manufacturing workers is the highest.

Therefore, the correct option is that all manufacturing is not done in Mexico and other low-wage countries because of trade barriers.

8 0
3 years ago
If bonds with a face value of $208,000 are issued at 97, the amount of cash proceeds is ____
madam [21]

Answer:

C) $201,760

Explanation:

To compute the amount of cash proceeds, we have to multiply the bonds face value with the issued price percentage.  

Since only issue price is given, so we assume it is in percentage form because the number of shares is not given in the question. So, we assume this.  

In mathematically,  

Cash proceeds = Face value × 0.97

                          = $208,000 × 0.97

                          = $201,760

4 0
4 years ago
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