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NARA [144]
3 years ago
13

Diversification is an important part of investing because

Business
1 answer:
xeze [42]3 years ago
7 0
Diversification in investments will reduce long-term risk. 
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Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,
Ratling [72]

Answer:

B) 9.1%

Explanation:

Cost of debt is the interest rate paid by a company due to borrowing money; i.e  debt from investors.

$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;

First, find pretax cost of debt ;

Pretax cost of debt = (Interest expense / Face value of debt )*100

= (26,000,000/ 185,000,000 )*100

=0.1405 *100

= 14.05%

Next, use pretax cost of debt to find after-tax cost of debt;

After-tax cost of debt = Pretax cost of debt (1-tax)

= 14.05% *(1-0.35)

= 9.13%

Therefore, Westford's cost of debt capital is 9.1%

6 0
3 years ago
The investment most affected by local conditions is:
Tems11 [23]

Savings accounts . . .
     interest rates are most determined by the state of
         the national economy.

Mutual funds . . .
Treasury bills . . .
     traded on nationwide exchanges; prices and returns
        are pretty uniform nationwide.

Real estate . . .
     rests directly on local conditions in each city, and sometimes even in
        different parts of the same city;
     affected by things like local unemployment, local bad weather,
        local price of gas, local tourism, local special events, etc.

4 0
3 years ago
Read 2 more answers
At the initial equilibrium value of money and price level, the quantity of money supplied is nowless than the quantity of money
tiny-mole [99]
The value of money will FALL
5 0
3 years ago
Brian just started using a budget. He proudly tells friends that his budget helps him know where his money is being spent. It al
stepan [7]
The right answer for the question that is being asked and shown above is that: "<span>Brian has some understanding of budgeting. However, a budget does not create more money each month. It just helps him use his money better." That is the best answer among the choices.</span>
5 0
3 years ago
If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the
Anestetic [448]

Answer:

If the lender rate decline he will be worst of due to consumer buying behavior.

Explanation:

  • Lenders are creditors and not all creditors are leanders. During a decline in the interest rates goes down and borrowing gets cheaper. The leander will be worse after the interest rates decline. If the interest rate rises or changes the lender may get higher rates.
4 0
3 years ago
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