All categories

3 years ago

Which of the following is an example of an equity investment?

Business

1 answer:

Blizzard [7]3 years ago

5 0

Answer:

A company's stock

Explanation:

There are two main capital structure i.e. debt and the equity. The debt is the loan which is to be borrowed by the individual or a company in order to raise a capital. While the other one is equity in which it shows the ownership stake in the company also it involves the securities than should be traded in the stock markets

While going through the options given, the second option is correct as other options are the examples of debt and the same is not considered for an equity investment

You might be interested in

The market risk premium is computed by: adding the risk-free rate of return to the inflation rate. adding the risk-free rate of

OverLord2011 [107]

Answer:

subtracting the risk-free rate of return from the market rate of return

Explanation:

Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset

Market risk premium = market rate of return - risk free rate

the higher the risk premium, the higher the return investors are demanding and the riskier the investment

for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%

Market premium in A = 10% - 5% = 5%

Market premium in b = 20% - 5% = 15%

3 0

3 years ago

Pastoria Enterprises has scheduled raw material purchases of $100,000 in January, $130,000 in February, and $150,000 in March. T

IRINA_888 [86]

Answer:

Explanation:

The question asks to calculate how much will be disbursed by the company in February.

Firstly , we know that the company disburses 75% in the month of purchase and 25% during the month after purchase.

Now, 75% of $130,000 would be disbursed as February’s own payment:

Mathematically 75/100 * 130,000 = 97,500

Also, we should not forget that the company disburses 25% of previous month during the current. That is 25/100 * 100,000 = 25,000

Total amount disbursed is thus 25,000 + 97,500 = $122,500

6 0

2 years ago

Anyone have tikt ok put u r at in co mments or anw ser and i will follo w u

kondaur [170]

Answer:

sorry I don't have one! T~T

Explanation:

8 0

2 years ago

matt, a shareholder, can run for director by simply placing his name on the company's proxy statement. True or False?

IgorLugansk [536]

False

Reason: A Shareholder cannot go for the director's by writing his name on the proxy Statement. Instead he has to place his name on the AGM or Annual General Meeting, where Shareholders meet, propose for their plans and Vote for The Company's Director.

6 0

3 years ago

Tiggie’s Dog Toys, Inc. reported a debt-to-equity ratio of 1.75 times at the end of 2018. If the firm’s total assets at year-end

il63 [147K]

Answer:

Total debt is $15.91million

Total equity is 9.09miliion

Explanation:

Debt-to-equity ratio relates to how a firm is financing its operations through debt versus shareholders' equity(owners' fund)

The formula is: Total debt/total equity

Debt-to-equity ratio = 1.75times

Total assets =$25 million

We know the Equity = Asset - liability(debt)

We can rewrite the equation as:

Debt-to-equity ratio = Total debt/asset - debt

Let's represent debt as 'y'

1.75 = y/$25million - y

y = 1.75($25million - y)

y = $43.75 - 1.75y

Collect the like terms

y + 1.75y = $43.75million

2.75y = $43.75million

y = $43.75million/2.75

y = $15.91million

Therefore, total debt is $15.91million

Using the same formula: Total debt/total equity

Lets represent equity with z

1.75 = $15.91million/z

z = 15.91million/1.75

z = 9.09miliion

Therefore total equity is 9.09miliion

6 0

3 years ago

Read 2 more answers