A *blank* can illustrate your achievements that are difficult to display in a cover letter or a resume

Having just returned from the war in Afghanistan, David has $25,000 in his savings account. His girlfriend suggests that he talk

nexus9112 [7]

Answer:

The correct answer is FALSE.

First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
Second, high growth stock are also

high risk
they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.

Although they are high risk, they also have great advantages such as:

High growth rate: this means if all goes well David will enjoy a good return on his investment;
It's also a way to protect his money from erosion by inflation

What can David do?

Subject to the advise of a professional investment professional

David needs to take into consideration his immediate needs, set aside some funds to take care of that.
Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
Start a small business by the side or get a job in the interim as he continues with his new life.

Cheers!

7 0

4 years ago

Kiley Corporation had these transactions during 2017. Analyze the transactions and indicate whether each transaction is an opera

OverLord2011 [107]

Explanation:

The cash flow statement includes three types of activities which are listed below:

1. Operating activities: This involves all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.

It would moderate those shifts in working capital. For addition, the depreciation cost is applied to the net income, and the loss on asset sales is added while the benefit on asset sales is deducted

2. Investing activities: it tracks operations that include buying and selling long-term properties. The buying is a cash outflow whereas the sale is a cash inflow

3. Financing operations or activities : it monitors transactions that have an impact on long-term debt and equity balance of shareholders. Share issue is cash inflow while redemption and dividend is cash outflow.

So, the categorization is shown below:

A) Purchased a machine for $30,000, giving a long-term note in exchange. = non-cash investing and financing activity as it does not involved any cash transaction

B) Issued $50,000 par value common stock for cash = Cash inflow and come under the financing activities

C) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. = non - cash financing activities as it does not involved any cash transaction

D) Declared and paid a cash dividend of $13,000.= Cash outflow and come under the financing activities

E) Sold a long-term investment with a cost of $15,000 for $15,000 cash. = Cash inflow and come under the investing activities

F) Collected $16,000 from sale of goods = Cash inflow and come under the operating activities

G) Paid $18,000 to suppliers = Cash outflow and come under the investing activities

7 0

4 years ago

Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling p

Anna [14]

Answer:

1a. Incremental net income $ 860,560

1b. Yes, the additional investment will be justified because the cost which is justified as incremental contribution is more than enough to cover for the incremental fixed selling expenses

1c. Breakeven cost for order $ 23.8

Explanation:

Calculation for the contribution margin per unit

Selling price per unit $ 60

Variable cost per unit as

Direct materials 7.50

Direct labor 10.00

Variable manufacturing overhead 1.90

Variable selling expenses 2.70

Total variable cost per unit 22.1

Contribution margin per unit $ 37.9

(60-22.1)

1a. Computation for the incremental operating income

Incremental contribution margin$ 1,000,560

(26,400 units*37.9)

Incremental fixed costs$ 140,000

Incremental net income $ 860,560

Incremental units = 114,400-88,000 = 26,400 units

1b. Yes, the additional investment will be justified because the cost which is justified as incremental contribution is more than enough to cover for the incremental fixed selling expenses.

1c. The breakeven price per unit will not include current fixed costs because the order will be only for the incremental costs of the units

Variable cost per unit as

Direct materials 7.50

Direct labor 10.00

Variable manufacturing overhead 1.90

Variable selling expenses (i.e. shipping cost only) 2

Import duties 1.70

Permits and licenses (18,480/26,400) 0.7

Breakeven cost for order $ 23.8

4 0

4 years ago

Which is the most accurate definition of body language?

Masja [62]

Body Language is communicate by movement or position, particularly facial expressions, gestures and the relative positions of a speaker and listener.

6 0

3 years ago

Read 2 more answers

If the expected long-run growth rate for this stock is free cash flow during the just-ended year (t = 0) was $120 million, and F

Pani-rosa [81]

Answer:

Firm value in millions 1,605‬ (one thousand six houndred five milllions)

Explanation:

To evaluate a firm based on the free cash flow we do a procedure similar to gordon dividend grow model

$\frac{divends_1}{return-growth} = Intrinsic \: Value$

We are going to replace dividend for the free cash flow

and the return for the WACC

notice we are given with the current FCF and for the gordon model we require dividend for the next year. (time=1)

here we need the same

FCF x (1+g) = 120 x (1 + 0.07) = 128.4

WACC .15

grow 0.07

$\frac{128.4}{.15-.07} = $Firm Value$

Firm value in millions 1,605‬ (one thousand six houndred five milllions)

8 0

4 years ago