Answer:
Increase
less
A) Reinvestment rate risk.
Explanation:
Reinvestment rate risk is demonstrated as the type of financial risk in which the investor is concerned about his investment getting canceled or stopped in the future and the other party/place might not be able to provide a similar rate of return.
In the given situation, Frank Barlowe is concerned about reinvestment risk. <u>He is aware that he will earn a steady income from his investments as he knows that when the interest rates increase, his potential returns would increase and vice versa</u>. But since he is retiring, he has a potential concern that if the investment gets abandoned somehow, he might not be able to reinvest his amount at the same rate and will not be able to continue with steady returns. Thus, <u>option A</u> is the correct answer.
Answer:
a.true
b.false
Explanation:
The advantage of short-term financing is better seen when a capital project is financed by a non- current liability.Where the period of Investment is <em>longer</em> than the period the financial charge is applied to the firm
Answer:
Variable cost per unit = $15 per unit
Explanation:
given data
May produced = 4,000 units
May total cost = $110,000
November produced = 2,500 units
November total cost = $87,500
solution
we get here Variable cost per unit as per high-low method that is express as
Variable cost per unit = (Highest cost - Lowest cost) ÷ ( Highest quantity produced - Lowest quantity produced) ....................1
put here value and we will get
Variable cost per unit =
Variable cost per unit = $15 per unit
Answer:
b. $3,350,000
Explanation:
<em>Long-Term Liabilities:</em>
Bonds Payable $3,000,000
Notes Payable $165,000
Mortgage Payable $185,000
Total Long Term Liabilities $3,350,000
Answer: True
Explanation:
The Hawthorne studies were designed originally in order to show the relationship that existed between productivity and the workplace conditions.
A study like the the level of lighting was used to show correlation with the productivity of the workers and the result was that demonstrated that no matter what the levels of light and noise were, there was an increase in the worker productivity because the workers liked the attention they received by being part of a study.