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3 years ago

When you purchase a mutual fund, you

Business

1 answer:

Orlov [11]3 years ago

6 0

When you purchase a mutual fund you:

(B)

invest in a group of stocks and bonds that an expert selects

Explanation:

Investing in mutual fund is basically about investing money with an investor who will then put the money into the market such that there is less chance of loss to either parties and there is a sustained growth over a long period of time.

This is a more safe strategy for those who do not understand the market or are afraid of stocks that can be volatile.

Here the chances of loss are low because the investment is in a fund that will grow

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you believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid

Svetlanka [38]

Answer:

You should pay a stock price of $33.33

Explanation:

We can use the formula below to calculate the price per share that you would be willing to pay;

RRR=(EDP/SP)+EDGR

where;

RRR-required rate of return

EDP-expected dividend payments

SP-share price

EDGR-expected dividend growth rate

This can also be written as;

Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate

In our case;

RRR=12%=12/100=0.12

EDP=$2

SP=unknown

EDGR=6%=6/100=0.06

replacing;

0.12=(2/SP)+(0.06)

0.12-0.06=(2/SP)

0.06=(2/SP)

0.06 SP=2

SP=2/0.06

SP=33.33

You should pay a stock price of $33.33

6 0

3 years ago

g Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. Th

nikdorinn [45]

Answer:

Net Present value = -$40,221

Explanation:

The net present value is the sum of the discounted cash-flows over the life of the project from t=0 to t=n.

Year Cash-flow PVIF Present Value

0 (55,500) 1.0000 (55,500)

1 2,700 0.9091 2,455

2 2,700 0.8264 2,231

3 2,700 0.7513 2,029

3 11,400 0.7513 <u>8,565 </u>

Net Present value (40,221)

The salvage value is treated as a cash-flow at the end of year 3 as that's the last year in which the project records a cash inflow. In this question, a negative net present value implies that the project is not profitable, and should therefore not be undertaken.

6 0

3 years ago

How would a rise in business investment affect the aggregate demand curve?

vlabodo [156]

The aggregate demand curve shifts to the right

7 0

3 years ago

Read 2 more answers

Mackalya is an office secretary at the "All American Office Products Company." This Company sells office supplies and office equ

Bogdan [553]

Answer:

1. Yes; Journal entry

2. Debit- Printing & Stationery Expense $160 (value for 8 boxes)

Credit- Cost of goods sold or Trading account A/c $160

3. Leaves to the cost of goods sold account

Explanation to:

1. Mackalaya used inventory. Remember, inventory is a term used to refer to all the merchandise (goods or products) a company has at the moment in stock.

2. The Journal entry to be made would be

Debit- Printing & Stationery Expense $160 and Credit this value to Cost of goods sold or Trading account A/c section of the Journal entry.

3. Remember, the cost of goods sold cares for all inventory sales, therefore it would be credited with value of the inventory item sold by the company.

6 0

4 years ago

All I’m Saying Corporation produces and sells a single product. Data concerning that product appear below: Selling price per uni

dexar [7]

Answer:

Break-even point in units= 12,769 units

Explanation:

Giving the following information:

Selling price per unit= $170

Variable expenses per unit= $81.10

Fixed expense per month= $997,920

Monthly target profit of $137,240

To determine the number of units to be sold, we need to use the break-even point in units formula. We need to add the desired profit.

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (997,920 + 137,240) / (170 - 81.1)

Break-even point in units= 12,769 units

4 0

3 years ago