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3 years ago

Let’s say your friend wants to invest all of her saved money into ONE individual stock. Is this a good idea? Why or why not?

Business

1 answer:

OverLord2011 [107]3 years ago

3 0

This is not a good idea as stocks are volatile.

Explanation:

One must never invest a lot of money in only one stock as the stocks are wont to change over time and gain or lose value.

If one wants a long term investment with at least some amount of safety they must be investing in stocks that grow consistently and then to break up the capital in small chunks and then invest them.

All of these can be invested in different shares in the market and then the shares would be more safe.

Even if one or two shares fall the others will be safe.

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Angela believes that Beamer Corporation’s stock will drop in value. She borrows 150 shares from a brokerage firm when the stock

belka [17]

Given:

Total number of shares = 150

Selling price = $42

Purchase price = $27

Find:

Angela’s profit on investment = ?

Computation of Angela’s profit on investment:

Angela’s profit on investment = Total sales value - Total purchase value

Angela’s profit on investment = (150 x $42) - (150 x $27)

Angela’s profit on investment = $6,300 - $4,050

Angela’s profit on investment = $2,250

Therefore, Angela’s profit on the selling of investment is $2,250.

3 0

3 years ago

Prepare an amortization schedule for a three-year loan of $84,000. The interest rate is 9 percent per year, and the loan calls f

Keith_Richards [23]

Answer:

Amortization Schedule

Year Payment Principal Interest Balance

1 35,560.00 28,000.00 7,560.00 56,000.00

2 33,040.00 28,000.00 5,040.00 28,000.00

3 30,520.00 28,000.00 2,520.00 0.00

Explanation:

Loan of $84,000.00 at 9% interest with 3 annual payments at Constant Principal Payments of $28000 .

Total Payments: $99,120.00 Total Interest: $15,120.00

The Interest payment and principal amount is gradually decreased with principal value of the loan. The principal value at the end of the year 3 is zero.

7 0

3 years ago

You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earning

Varvara68 [4.7K]

Answer:

C) $27.75

Explanation:

Earnings:

2.00 x 20% = 0.4 (2.00 + 0.40 = 2.40)

2.40 x 20% = 0.48 (2.40 + 0.48 = 2.88)

2.88 x 20% = 0.576 (2.88 + 0.576 = 3.456)

3.46 x 10% = 0.346 (3.46 + 0.346 = 3.806)

3.80 x 10% = 0.38 (3.80 + 0.38 = 4.18)

Dividends:

3.46 x 50% = 1.73

3.80 x 50 % = 1.90

4.18 x 75% = 3.135 ( 50% + 25% = 75%)

P0 = 1.73/[(1.12)^4] + 1.90/[(1.12)^5] + (3.14/(0.12 - 0.05))/1.125

= 27.63

Therefore, If Bean's equity cost of capital is 12%, then the price of a share of Bean's stock is closest to $27.75

8 0

2 years ago

A learning organization is an organization that actively creates, acquires, and transfers knowledge within itself and is able to

Kipish [7]

Answer:

As it is said in the text, Learning Organizations are organization that enables people to build their knowledge and capacity.

Explanation:

A learning organization creates in people more value around their skills and motivates them. They are essential and the key to success. In order to build them there’s a huge need of having a training plan so people in it keep on studying and challenging theirselves. To track these trainings there must be an evaluation and monitoring plan so that we can be aware of the changes needed.

7 0

3 years ago

Roberta is a customer service representative at a car rental company. Read the passage. Which actions might lead to increased cu

pochemuha

Answer:

Training

Explanation:

Learning within a workgroup is the only way to improve performance. An outstanding representative as Roberta needs to transfer her skills to the rest of the team. One strategy to accomplish that is naming her as responsible for on-board training for the new teamates.

Another strategy is to use surveys after the calls to know what are the opinions of clients regarding services. It allows to identify improvement opportunities.

3 0

3 years ago