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WARRIOR [948]
3 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]3 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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A product that sells today for $150 per unit is expected to escalate in price by 6% in year one, 8% in year two and 10% in year
saveliy_v [14]

Answer:

<u>     selling price at year 3:</u> $ 188.89

<u>at constant dollar year 3:</u> $  167.94

Explanation:

selling price x accumualte raises:

150 \times (1+0.06) \times (1+0.08) \times (1+0.10)

150 \times 1,25928‬

selling price: 188,892

now, to calculate the constante dollar we discount for inflation:

188.892 \div ((1+0.03) \times (1+0.04) \times (1+0.05))

188.892 \div 1,12476‬

constant dollar selling price: 167,9398271‬

4 0
3 years ago
T/F Leaders are appointed by popular demand in formal groups.
Alla [95]

Answer:

F

Explanation:

hoped this helped

3 0
3 years ago
Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost o
AVprozaik [17]

Answer:

None of the above.

Total Income from operation increase.  12,500.00

Explanation:

  • Purchase cost from outside

$          10.00 Per unit

  • Inter transfer purchase from Division A

$            9.50 Per unit

  • Saving Per unit

$            0.50 Per unit

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Total Income from operation increases      12,500.00

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Try to guess my favorite walking dead character and i will give you a brainliest
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Abe owns a 1-bedroom cooperative apartment, which accounts for a 1.2% ownership stake among the other shareholders. If the annua
Tamiku [17]

Answer:

$485

Explanation:

Annual budget = $485,000

Monthly budget= $485,000/12

=$40,416.7

Abe responsibility=1.2%

40,416= 100%

1.2%=?

=40,416/100 x1.2

=404.16x1.2

=484.99

$485

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