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3 years ago

When you buy stock are you guaranteed profit?

Business

1 answer:

EleoNora [17]3 years ago

5 0

When you buy stock you are not guaranteed profit, it is possible to lose money just as it is to gain money.

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The bond market requires a return of 7.5 percent on the 3-year bonds issued by Beck Co. The 7.5 percent is referred to as the: A

mr Goodwill [35]

Answer:

The correct answer is letter "D": yield to maturity.

Explanation:

Yield to Maturity or YTM refers to the required market interest rate bonds posses. YTM represents the anticipated return investors could obtain in case they hold the bond until maturity. YTM is expressed as an annual rate and it is calculated using the following formula:

$YTM = \sqrt[n]{\frac{Face Value}{Current Price}} - 1$

where:

n = number of years to maturity
Face Value = maturity value of the bond
Current Price = price of the bond today

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3 years ago

Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a f

levacccp [35]

Answer:

A. 6.75%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $1,021.16

Future value or Face value = $1,000

PMT = 1,000 × 7% ÷ 2 = $35

NPER = 13 years × 2 = 26 years

The formula is shown below:

= Rate(NPER,PMT,-PV,FV,type)

The present value come in negative

So, after solving this, the pretax cost of debt is 6.75% (3.38% × 2)

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3 years ago

A company earned $2,880 in net income for October. Its net sales for October were $12,000. Its profit margin is:

snow_lady [41]

Answer:

profit margin = 23.33%

Explanation:

profit margin = net profit / net sales

net profit = $2,800
net sales = $12,000

profit margin = $2,800 / $12,000 = 0.233333 = 23.33%

The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM = 10%). Company A's costs are too high compared to Company B's costs.

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3 years ago

Yucca Co. updates its inventory periodically. The company's beginning inventory was $4,860 and purchases were $10,080 during the

erastovalidia [21]

Answer:

the cost of goods sold is $5,940

Explanation:

The computation of the cost of goods sold is shown below:

As we know that

Cost of goods sold is

= beginning inventory + purchase made - ending inventory

= $4,860 + $10,080 - $9,000

= $5,940

Hence, the cost of goods sold is $5,940

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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3 years ago

Which of the following carries regularly involve traveling?

erastovalidia [21]

Answer:

I think that they MIGHT be A C and D

Explanation:

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3 years ago