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3 years ago

Rational investors:

Business

1 answer:

TiliK225 [7]3 years ago

5 0

Answer: 2. cause stocks with similar risks to have similar expected returns.

Explanation:

Rational Investors are what most humans are termed as. They are believed to undertake actions that will neither harm them.nor leave them neutral. In other words, Rational Investors want to be rewarded in a way that Optimum benefit is reached in relation to risk.

Because of this, they will usually expect a certain level of return for a certain level of risk so as to reach that Optimum benefit.

If all/most Rational Investors view a stock now for instance, as risky, they will expect individually, a certain level of returns but since they are all Rational, that level will probably be the same across the board.

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Gary, Peter, and Chris own a firm as partners. Gary has a capital balance ofâ $22,000; Peter a capital balance ofâ $42,000; and

alekssr [168]

Answer:

<h2>answer: </h2>

Explanation:

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3 years ago

on february 1, 2021, sanger corp. lends cash and accepts a $3,000 note receivable that offers 18% interest and is due in six mon

Rus_ich [418]

The borrower pays the proper amount due to the seller Cash 3270

<h3>Briefing:-</h3>

1. Interest income of $3000 X (0.18) = 540

2. $540 over six or twelve months equals 270.

3. Journal Entry 3,000 Notes Receivable Interest Revenue 270 Cash 3270

<h3>Interest income is it income?</h3>

Interest income is the profit made from lending money to other organizations. The phrase is typically used in the income statement of the company to describe the interest received on cash held in savings accounts, certificates of deposits, or other investments.

<h3>What do journal entries entail?</h3>

A firm keeps a journal, which is a succinct record of all transactions; journal entries describe how transactions influence accounts and balances.

The information in journal entries serves as the foundation for all financial reporting, and there are several versions to suit different corporate requirements.

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1 year ago

It costs $34,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol a

victus00 [196]

Answer:

The investor will pay up the rereofitted pumps in a period of 22.52 months.

Explanation:

<em><u>First,</u></em> we solve for the amount of profit generate per month:

21,000 gallons a month x $0.09 per gallon = $1,890

Now, we calcualte the time at which an monthly income of 1890 discounted at 2% per month matches a present value of 34,000

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $1,890.00

time n

rate 0.02

PV $34,000.0000

$1890 \times \frac{1-(1+0.02)^{-n} }{0.02} = 34000\\$

$(1+0.02)^{-n}= 1-\frac{34000\times0.02}{1890}$

$(1+0.02)^{-n}= 0.64021164$

We use logarithmics properties to solve for n:

$-n= \frac{log0.64021164021164}{log(1+0.02)$

-22.52006579

n = 22.5200 = 22 and a half month.

7 0

3 years ago

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product

serg [7]

Answer:

Explanation:

Focus strategy is said to be pursued when a company recognizes a relatively narrow market segment or a particular buyer group where competition is weakest and then tailored its production and product offerings towards this niche in order to serve the particular target or niche extremely well with the aim of earning a huge return on investment.

Focus strategy is pursued when a company recognizes that the differences in need of one market segment to another and then produce or deliver goods and services that serve the needs and requirements of this particular competitive segment

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3 years ago

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Chester Company has established internal control policies and procedures in order to achieve the following objectives:

Trava [24]

Answer:

B) Objectives 2 and 3

Explanation:

Accounting controls are procedures that help a company ensure the validity and accuracy of its financial statements.

Therefore, one of the main priorities of accounting controls would be to make sure that accounting records are correct. By ensuring the validity of accounting records, the company's assets are safeguarded, since the possibility of something missing or being incorrectly recorded diminishes.

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3 years ago