Answer:When you diversify your investments, you reduce the amount of risk you're exposed to in order to maximize your returns. Although there are certain risks you can't avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.
Small businesses are actually the major engine of the economy, especially
now that much of our manufacturing jobs have moved overseas, so they
play a crucial role in employment.
<span>Randy is displaying risk-taking behavior. The sort of behavior that entails with taking risks engages Randy in activities with unknown outcomes. High-risk behavior's origins are still unknown, however, the impulse or urge to take risks is a heavily researched topic.</span>
Answer:
b. freight absorption pricing
Explanation:
This is a pricing arrangement where the manufacturer/seller bears the cost of shipping and freight while the buyer only pay for the quoted cost of the goods.
Its a pricing strategy used by firms to attract more customers and encourage sales. Although in some cases, the freight cost have already been included in the cost of the goods.
Answer:
pretax cost of debt: 6.633%
Explanation:
We have to solve for the interest rate at which the present value of the coupon payment and maturity matches the present value of the bonds.
This is done using excelor a financial calculation
Present value of the coupon payment (ordinary annuity)
C 35 (1,000 x 7% / 2 payment per year)
time 24 ( 12 years x 2 payment per year)
rate 0.033167588
PV $573.0155
Present value of maturity (lump sum)
Maturity 1,000.00
time 24.00
rate 0.033167588
PV 456.98
PV c $573.0155
PV m $456.9845
Total $1,030.0000
Notice this rate is given with semianual payment we should multiply by two to get the annual cost of debt:
0.033167588 x 2 = 0.06633
