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RUDIKE [14]
3 years ago
11

Stewart wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed 3

% rate of return. However, he would like to earn a higher return. Stewart should keep in mind that to earn a significantly higher return on his money he:________
Business
1 answer:
Likurg_2 [28]3 years ago
3 0

Answer:

Stewart will probably have to accept a higher level of risk .

Explanation:

Hence, a large-risk investment is one in which the risks of failure, or of losing some or all of the asset, are greater than the average.

  • These opportunities often offer investors the ability for greater returns in exchange for embracing the degree of risk associated with that.
  • In saving account he gets 3% rate of return but also gets a lower rate of risk and does not earn much.

If he invests his money in higher-risk fields like shares, he may get a higher profit.

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Up until this point, the owners have felt that creating a website was an unnecessary expense because you can't sell lattes onlin
Tems11 [23]

Marketing web Design CaffeGustoso to focus on providing information about its products and new locations to promote its offline sales.

Explanation:

Video Marketing  includes  the process of posting digital videos on social website  in order to promote a product or a service.

The only product that Caffe Gustoso has is the coffee so the suggestion will be to create a series of entertaining videos to increase the consumer engagement with coffee and to provide information related to its location with the motive to boost online sale.

Thus we can say that the initiative will be to -Marketing web Design Caff eGustoso to focus on providing information about its products and new locations to promote its offline sales.

6 0
3 years ago
Johnny Cake Ltd. has 30 million shares of stock outstanding selling at $40 per share and an issue of $40 million in 8 percent, a
erma4kov [3.2K]

Answer:

WACC = 0.16637 OR 16.637%

Explanation:

WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,

WACC = wD * rD * (1-tax rate)  +  wE * rE

Where,

  • w represents the weight of each component based on market value in the capital structure
  • r represents the cost of each component
  • D and E represents debt and equity respectively

To calculate WACC, we first need to calculate the Market value an cost of equity.

The market value of equity = 30 million shares * $40 per share

MV of equity = $1200 million

The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.

P0 = D1 / (r - g)

40 = 4 / (r - 0.07)

40 * (r - 0.07) = 4

40r - 2.8 = 4

40r = 4+2.8

r = 6.8 / 40

r = 0.17 or 17%

MV of debt = 40 million * 96.5%  => $38.6 million

Total MV of capital structure = 38.6 + 1200 = 1238.6 million

WACC = 38.6/1238.6  *  0.08  *  (1-0.33)  +  1200/1238.6  *  0.17

WACC = 0.16637 OR 16.637%

4 0
3 years ago
Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chicken dinners were made at a cost of $3.50 each
jenyasd209 [6]

Answer:

The price of a Dinner= $6.22

Explanation:

<em>Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.</em>

To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:

Dinner cost = 100/(100-10)× 3.50= 3.89

The price of a Dinner = product cost + 60% of product cost

The price of a Dinner = 3.89 + 60%*3.89= $6.22

The price of a Dinner= $6.22

6 0
3 years ago
Which neighborhood quality of life issue is most affected by the overuse of alcohol?
WITCHER [35]

Neighborhood quality of life issue is most affected by the overuse of alcohol unemployment, poverty, poor family integration, and high residential mobility are known to contribute to a greater risk of alcohol problems.

Alcohol interferes with the mind's conversation pathways and might affect the manner the brain seems and works. those disruptions can trade mood and conduct, and make it harder to assume virtually and circulate with coordination.

Alcohol has massive poisonous consequences on the digestive- and cardiovascular structures. Alcoholic drinks are classified as carcinogenic by the global organization for research on most cancers and boom the threat of several cancer types.

To lessen the chance of damage from alcohol-associated sickness or harm, healthy men and women should drink no more than 10 general liquids every week and no extra than 4 standard liquids on any person's day.

Learn more about alcohol here:

brainly.com/question/947751

#SPJ9

6 0
2 years ago
Your company produces mass spectrometers for sale to colleges and universities throughout the United States. On February 12, the
Jobisdone [24]

Answer:

As the Company has received a Cheque of $10,000,000 for payment in full. The Company though have not started the production it can consider such amount and cancel the contract and being a misc Income in its profit and loss account.

Though the product is being sold to an university and such organisation work on No profit no loss situation hence it can consider manufacturing 10 units and selling such units to the university at least the university also does not incur a loss of such a huge amount.

7 0
3 years ago
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