Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
Answer:
$1.86 million
Explanation:
Given the above data, we can calculate the retained earning for next year to be;
Retained earning this year end = $1.5 million retained earning at the beginning + $0.5 million net income - $0.2 million dividends
= $1.8 million
Answer:
Thanks. Have an awesome day and lmk if i can help with anything ^^
Explanation:
Answer: Option A
Explanation: In simple words, Ponzi scheme refers to a scheme in which a company deceit their earlier investor by paying them from the funds of recent investors in the form of profits.
In the given case, Levi deceited Charles by making him believe of a strategy that may or may not exist in his organisation. Thus, he will pay charles from the money that he will gain from the market after the announcement of the new processor.
Hence from the above we can conclude that the correct option is A.
Answer:
C.
Explanation:
Privatization and nationalization are two words that have opposite meanings, which makes them antonyms. Privatization is the process by which a government-owned business or a publicly-owned business is transferred into private ownership. The idea may be that privatization leads to a more efficient institution. Nationalization is the process by which privately owned business is transferred into government or public ownership. The idea may be that the business is so important to the well-being of the public that it can not be trusted to private individuals, or it may be that the government is over-reaching. Nationalization is the process of transforming private assets into public assets by bringing them under the public ownership of a national government or state.Nationalization usually refers to private assets or assets owned by lower levels of government, such as municipalities, being transferred to the state .The opposites of nationalization are privatization and demutualization. When previously nationalized assets are privatized and subsequently returned to public ownership at a later stage, they are said to have undergone re-nationalization. Industries that are usually subject to nationalization include transport, communications, energy, banking, and natural resources. Therefore privatization and nationalization are opposing trends. C is correct .
