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Finger [1]
3 years ago
8

What risk-related concept does the following question attempt to measure? In approximately how many years do you plan to retire?

(1) 1-5 years; (2) 6-10 years; (3) 11-20 years; (4) 21-30 years; (5) more than 30 years. Group of answer choices
Business
1 answer:
Oksanka [162]3 years ago
4 0

Answer: RISK CAPACITY

Explanation:

RISK CAPACITY is the amount of risk an individual or organization can adopt in order to achieve set goals.

Risk capacity is more OBJECTIVE and is measured mathematically in relation to financial investments.

Risk Capacity is usually compared to Risk Tolerance which is the amount of risk an individual or organization is willing to take. This is more SUBJECTIVE and is simply based on personal feelings/emotions.

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Price, Supply and Demand. Amonopoly's potential to raise prices indefinitely is its most critical detriment to consumers.
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Arthur is a truck driver who owns his own business. He has been on the road for several months, and the constant wear and tear o
uranmaximum [27]

Answer:

<u>Letter B is correct</u>. Will be reduced.

Explanation:

In this case, Arthur's taxes will be reduced. This situation happens according to some legal criteria. Arthur is a sole proprietor of his business, and since he has had significant losses tied to his business, he has the right to reduce personal expenses on such losses by subtracting this cost from his tax obligations.

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As he explores his options, Sergio notices that some opportunities appear to be riskier than others. When considering various op
Margarita [4]

Answer:

His risk profile.

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When comparing various option , Sergio must understand his risk profile and choose the option according to it.

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3 years ago
The major work elements defined in the statement of work (SOW) section along with the detailed list of deliverables provide the
Natali5045456 [20]

Answer:

Work Breakdown Structure (WBS)

Explanation:

Note that, <em>the statement of work (SOW</em>)  is usually used in project management to define project-specific activities, deliverables etc.

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3 0
3 years ago
Caddie Manufacturing has a target debt-equity ratio of .95. Its cost of equity is 11 percent, and its pretax cost of debt is 7 p
Zigmanuir [339]

Answer:

8.20%

Explanation:

Debt equity ratio = 0.95

or

Debt = 0.95 × equity

Cost of equity, ke = 11% or 0.11

Pretax cost of debt, kd = 7% or 0.07

Tax rate = 24% or 0.24

Therefore;

WACC = {Weight of equity × ke } + {Weight of debt × kd × (1-Tax rate)}

It is to be noted that ;

Weight of equity = Equity ÷ (Debt + Equity)

= Equity ÷ ( 0.95×Equity + Equity)

=1 ÷ 1.95

=0.513

Also,

Weight of debt = Debt ÷ ( Debt + Equity)

=0.95 × Equity ÷ ( 0.95 × Equity + Equity)

= 0.95 ÷ 1.95

=0.487

Hence,

WACC = {0.513 × 0.11} + {0.487 × 0.07 × (1-0.24)}

= {0.05643} + {0.03409 × 0.76}

= 0.0823384

or

0.0823384 × 100%

=8.23384

=8.20%

6 0
3 years ago
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