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Leviafan [203]
3 years ago
12

To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all tha

t apply.
A. What can go wrong?
B. What are the alternatives?
C. Is risk avoidable?
D.What is the likely return?
E. Is the risk worth the return?
Business
2 answers:
AleksAgata [21]3 years ago
5 0
The practical questions that a buyer should ask are: -What can go wrong? And -Is the risk worth the return? These questions are very deep that can help the buyer in his or her decisions in purchasing a product. These are critical questions that must be answered by the seller because these questions will test if the product is worth to pay. <span>
</span>
vaieri [72.5K]3 years ago
4 0
I believe the answer is: 

- What can go wrong?
This question is asked to find out the potential risk that may occur after purchasing the product.

- What is the likely return?
This question is asked to find out potential benefit from consuming the product

-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk

</span>
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I want to start a new business. Ideas?
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2 years ago
Suppose Potter Ltd. just issued a dividend of $2.50 per share on its common stock. The company paid dividends of $2.00, $2.07, $
Bogdan [553]

Answer:

Explanation:

Using dividend growth model formula for finding dividend per year can be used to find the growth rate per year;

The formula would be D1 = D0(1+g)

and D2 = D1(1+g)

D3 = D2 (1+g)  and so on....

Starting with 2.00 dividend,  <u>growth rate from yr1-yr2;</u>

2.07 = 2.00*(1+g)

Divide both sides by 2.00;

1+g = 2.07/ 2.00

1+g = 1.035

g = 1.035-1

g ( y1-y2) = 0.035 or 3.5%

<u>Growth rate from yr2-yr3;</u>

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Divide both sides by 2.07;

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<u>Growth rate from yr3-yr4;</u>

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Divide both sides by 2.24;

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<u>Growth rate from yr4-yr5;</u>

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2.50/2.34 = 1+g

1.0684 = 1+g

1.0684-1 = g

g=0.0684 or 6.84%

Therefore, g(y4-y5) = 6.84%

8 0
3 years ago
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