The two major forms of employee involvement are participative management and _______

One important difference between capital budgeting and security analysis is that in security analysis the analyst must generally

Rashid [163]

Answer: True

Explanation:

Capital budgeting is the method used in the planning process in the organisations used to evaluate the long term project investing. Security analysis is the method of determining the proper value of debt, equity or hybrid securities of an organisation.

In simple words capital budgeting is an evaluation method and security analysis is the valuation method. Capital budgeting is done fro the data that is usually expected in nature whereas security analysis is done on the data which already exists in market.

Security analysis is done for valuing the securities thus the cash flows are given and we have to use that data for valuation purposes but in capital budgeting we can influence the cash flows as we have an objective to achieve .

8 0

3 years ago

What year began the worst economic recession since the great depression?.

Kamila [148]

2007 to the year of 2009

4 0

2 years ago

Which of the following statements is CORRECT?a. An investment that has a nominal rate of 6% with semiannual payments will have a

andreyandreev [35.5K]

Answer:

c. If a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%

CORRECT

as at least is recive 7% of the investment. If payment are made in shorter period (semiannually, quarterly, etc)

Then the effective rate will be higher, not lower.

Explanation:

a. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%

FALSE the effective rate will be higher as there is compounding effect.

b. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due

FALSE the annuity-due is discounted for one period less, as the payment are made at the beginning of the period therefore; his V is greater.

d. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different

FALSE if it mades annual payments they will be equal

e. The proportion of the payment that goes toward interest on a fully amortized loan increases over time.

FALSE the interest will decrease over time as there is a portion of principal which is being paid each installment

3 0

3 years ago

Arvo Corporation is trying to choose between three alternative investments. The three securities that the company is considering

oee [108]

Answer:

9.635%

Explanation:

We shall use a table to compute different values as shown below.

Investment Return Taxable amount Tax Rate After-tax return

Dividend 9.8% 30% (n1) 18% 9.2708% (w1)

Municipal bond 8.8% 0% 18% 8.8%

Corporate bond 11.75% 100% 18% 9.635% (w2)

The after tax return with on the best investment alternative is 9.635% for corporate bonds

Workings:

W1

9.8 *0.3*0.18 = 0.5292%

Return after tax = 9.8% -0.5292% = 9.2708%

w2

18.75*0.18 =2.115%

Return after tax = 11.75% -2.115% = 9.635%

Notes:

n1 : 70% of the dividends are excluded from taxation. Only 30% is to be taxed

4 0

3 years ago

When firms are said to be price takers, it implies that if a firm raises its price: a. buyers will go elsewhere. b. buyers will

MatroZZZ [7]

Answer:

The correct answer is a. buyers will go elsewhere.

Explanation:

This situation occurs when there is competition, that is, other businesses that offer the same or similar products as those of a particular company. In this scenario, the potential buyer will notice the difference according to their previous experiences and will find a way to acquire products from another brand that offer the same satisfaction as the product that rose in price. You must be very cautious with this practice, since it can end up damaging the operation, and in the worst case, leading to bankruptcy.

3 0

3 years ago

The two major forms of employee involvement are participative management and​ ________.

The two major forms of employee involvement are participative management and ________.