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umka21 [38]
3 years ago
9

The primary benefit of diversification​ is:

Business
1 answer:
BartSMP [9]3 years ago
8 0

Answer:

(B) A reduction in risk

Explanation:

Diversification is necessary for investing. In this case, you invest your capital in different investments and you do not need to rely on a single investment for your returns and this also helps to reduce capital lost. Among saving your capital and receiving returns, reduction of capital loss is the primary benefit of diversification. If you invest your capital in one investment and the return is low or there is a poor performance, another investment might generate high returns over the same period of time and your capital loss is reduced.

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The Crash Davis Driving School has an ROE of 13.3 percent and a payout ratio of 32 percent. What is its sustainable growth rate?
Nikolay [14]

Answer:

sustainable growth rate for Crash Davis Driving School:  9.044%

Explanation:

growth = ROE \times (1 - $dividends payout ratio)

0.133 x (1-0.32) = 0.09044

The firm will grow as the amount that isn't paid as dividends increase the equity through retained earnings. Because both, common sense the acounting equaition if the earnings are retained they will be investment and assets will increase:

Assuming the company thakes no debt for the period then:

Assets = liab + equity

Assets = 0   +  increase in RE

Assets = + increase in RE

Thus, this is the rate at which assets grows without taking new debt

7 0
4 years ago
Select the correct answer
serious [3.7K]

Answer: I think it’s D The sales team is the voice of an organization, so there should be no scope for misinformation.

Explanation: They should be in constant communication so misinformation can be stopped.

8 0
3 years ago
Read 2 more answers
what is a major advantage of the multiple-step income statement over the single-step income statement? the multiple-step income
Nataly [62]

The multiple-step income statement clearly presents the value of total expenses is a major advantage of the multiple-step income statement over the single-step income statement. The correct option is A.

<h3>What is the advantage of using the multiple-step income statement?</h3>

The main advantage of using a multi-step income statement is that it separates operating and non-operating income. This reduces financial clutter and emphasizes the most important aspect of a company's finances—the operational portion.

Multiple-step income statements' siloed breakdowns enable deeper margin analysis and more accurate representations of costs of goods sold. Such specificity provides stakeholders with a clearer picture of how a company operates by comparing gross, operating, and net margins.

Thus, the ideal selection is option A.

Learn more about the multiple-step income statement here:

brainly.com/question/28893322

#SPJ1

6 0
1 year ago
The substitution effect of a change in the price of bananas refers to the way in which a change in the:______.
Vladimir79 [104]

The substitution effect of a change in the price of bananas refers to the way in which a change in the price of a substitute affects the demand for bananas.

What is change in the price?

The difference between an asset's original and final values is known as the price change. It might be detrimental or beneficial. Investor choices are influenced by price movements. Investor confidence will be high for a financial instrument that exhibits a steady price increase over time.

Therefore,

The substitution effect of a change in the price of bananas refers to the way in which a change in the price of a substitute affects the demand for bananas.

To learn more about change in the price from the given link:

brainly.com/question/688645

5 0
2 years ago
Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.92 kilogram of a part
Alla [95]

Answer:

d. 1.05 kilograms

Explanation:

Since we are looking for the standard quatity in kilograms of input per unit of out put we are going to sum up all the input for each unit of output in order to arrived at the standard quantity in kilograms.

Output unit required 0.92 kg

Add: waste and spoilage allowance 0.02 kg

Allowance rejected 0.11 kg

Standard quantity in kilograms 1.05 kg

4 0
3 years ago
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