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3 years ago

Explain how personal financial goals and investment strategies are related to risk tolerance.

Business

1 answer:

Masteriza [31]3 years ago

4 0

Answer:

Your risk tolerance will change as your investment goals, financial situation and life experience evolve. Generally, the longer the length of time until you need your money, the more risk you can afford to take. In order to make the best investment, consider where you are in life.

Explanation:

You might be interested in

How much does a plumber charge to replace a toilet?.

timurjin [86]

Toilet installation costs range from $224 to $531, with the national average at $372. Plumbers can charge anywhere from $65 to $250 per hour for labor costs.

4 0

2 years ago

Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, note

tatuchka [14]

Answer:

1. Accounts receivable

2. Notes receivable

3. Other receivable

Explanation:

Sold merchandise on account for $64,000 to a customer - Accounts receivable. Since the merchandise is sold on credit to a customer, the same is recorded in the current assets of the balance sheet as accounts receivable.

Received a promissory note of $57,000 for services performed - Notes receivable. Since the promissory note is received for service performed which we term as a note receivable. This also come under the current assets of the balance sheet

Advanced $10,000 to an employee - Other receivables - As an advance is given to an employee neither is an account receivable nor it notes receivable. So, it is term as an other receivable

6 0

4 years ago

Hankins Corporation has 7.5 million shares of common stock outstanding, 275,000 shares of 4.7 percent preferred stock outstandin

yulyashka [42]

Answer:

7.98%

Explanation:

For computing the market value capital structure we need to do following calculations which are shown below:

Market value of stock = 7,500,000 × $62 per share = $465,000,000

Cost of Equity = Risk Free rate + Beta × Market risk Premium

= 3.4% + 1.10 × 7.2%

= 11.32%

Market value of Bond = 108% × $2,000 × 160,000 bonds = $345,600,000

Coupon = 5.6% × 2000 ÷ 2 = 56

Number of Periods(n) = 18 × 2 = 36

Market value = $2000 × 1.08 = $2160

Cost of debt (YTM) using excel formula is

= RATE(36,56,$2,000,-$2,160)

= 4.92%

Market value of Preferred Stock = 275,000 × $94 = $25,850,000

Cost of Preferred Stock = 4.7%

Total value = $465,000,000 + $345,600,000 + $25,850,000

= $836,450,000

Equity ratio = $465,000,000 ÷ $836,450,000 = 0.5559

Debt ratio = $345,600,000 ÷ $836,450,000 = 0.4132

Preferred Stock ratio = $25,850,000 ÷ $836,450,000 = 0.0309

Now the market capital structure is

Cost of Project = Equity Ratio × Cost of Equity + Debt ratio × ( 1-Tax rate) × Cost of Debt + Preferred Stock ratio × Cost of Preferred stock

= 0.5559 × 11.32% + 0.4132 × (1 -24%) × 4.92% + 0.0309 × 4.7%

= 7.98%

3 0

3 years ago

Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured

kirill [66]

Answer:

C. $3,800

Explanation:

The computation of the cost level for both insurance policy is shown below:

We choose $1,000 or 50% which ever is lower

We take the help of the given options

a. For the first option

The 50% is 300 which is less than the 1,000 now we take 80% of ($600 - $300) that comes $240

b. For the second option

The 50% is 500 which is less than 500 now we take 80% of ($1,000 - $300) that comes $560

c. For the third optiion

The 50% of $3,800 i.e $1,900 and $1,000 whichever is less i.e ($3,800 - $1,000) = $2,800 so it is $1,000 now we take the 80% of ($3,800 - $300) i.e $2,800

Thus the amount comes same

Thus this is the right option

5 0

3 years ago

A firm has common stock of $100, paid-in surplus of $370, total liabilities of $460, current assets of $490, and fixed assets of

Andre45 [30]

Hi there

shareholders' equity=
(fixed assets+current assets)-liabilities

shareholders' equity=(700+490)−460
=730...answer

(Note that the amount of retained earnings is not provided so you must use total assets minus total liabilities to derive the correct answer)

8 0

3 years ago