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serious [3.7K]
3 years ago
9

What are the advantages and disadvantages of common stocks​

Business
1 answer:
andrey2020 [161]3 years ago
5 0

Advantages:

  • You can invest in companies with limited liability.
  • Common stocks offer a higher earning potential.
  • You can easily purchase common stock on virtually any trading platform.
  • Common stocks can provide dividends.
  • You’ll get to take advantage of a growing economy.

Disadvantages:

  • You are the last person to get paid during a company liquidation.
  • You don’t have much control over your investment.
  • Companies are not required to pay dividends on common stocks.
  • It can take time to generate significant gains.
  • You will face high levels of professional competition when investing in common stocks.

Hopes this helps :)

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Place the steps for finding the EOQ in a quantity discount model with variable H in the correct order.
ira [324]

The steps for finding the EOQ in a quantity discount model with variable H are:

  1. The optimal point is the quantity that yields the lowest cost
  2. Start with the lowest price
  3. If the minimum point is feasible
  4. Otherwise, compare total costs

What is the Economic Order Quantity(EOQ)?

The Economic Order Quantity is the ideal quantity of units a company should purchase to meet demand while minimizing inventory, costs such as holding costs, shortage costs, and order costs.

The economic order quantity formula assumes that demand, ordering and holding costs all remain constant.

Learn more about Economic Order Quantity here:

brainly.com/question/7224625

#SPJ1

4 0
1 year ago
You are considering a savings bond that will pay $ 100 in 9 years. If the interest rate is 1.9 %​, what should you pay today for
Dmitrij [34]

Answer:

You should pay $84.42 today for the​ bond.

Explanation:

bond price = value of bond/[(1 + interest rate)^number of years]

                   = $100/[(1 + 1.9%)^9]

                   = $100/(1.185)

                   = $84.42

Therefore, You should pay $84.42 today for the​ bond.

5 0
3 years ago
For the quarter ended March 31, 2017, Croix Company accumulates the following sales data for its newest guitar, The Edge: $316,7
erastovalidia [21]

Answer:

Explanation:

The preparation of ta static budget report for the second quarter is shown below:

                                          CROIX COMPANY

                                         Sales Budget Report

                             For the Quarter Ended June 30, 2017

                       Second Quarter                      Year to date

Product Line  Budget  Actual  Difference  Budget  Actual  Difference

New Guitar $383,500  $387,400 $3,900    $700,200 $690,500  $9,700

                                                      Favorable                             Unfavorable

The year to date balances are computed below:

For Budget:

= $383,500 + $316,700

= $700,200

For Actual:

= $387,400 + $690,500

= 690,500

6 0
3 years ago
For federal tax purposes, which of the following is true regarding lump-sum life insurance benefits?
Lorico [155]

Based on the information given, it should be noted that all proceeds are income tax free in the year that they're received.

<h3>What is tax?</h3>

A tax simply means a compulsory levy that's paid by the people or companies to the government. It's important to achieve economic development.

For federal tax purposes regarding lump-sum life insurance benefits, it should be noted that all proceeds are income tax free in the year that they're received.

Learn more about tax on:

brainly.com/question/9437038

7 0
3 years ago
Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturi
Aleonysh [2.5K]

Answer:

Price of the bond = $4,122.36

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  </em>

Value of Bond = PV of interest + PV of RV  

The value of bond for Yan Yan Corp.  be worked out as follows:  

Step 1  

<em>PV of interest payments  </em>

Semi annul interest payment  

= 4.6% × 5,000 × 1/2 = 115

Semi-annual yield = 4.1%/2 = 2.05  % per six months  

Total period to maturity (in months)   = (2 × 21) = 41 periods

PV of interest =  

115  × (1- (1+0.0205)^(-21)/0.0205)=1,946.47

Step 2  

<em>PV of Redemption Value  </em>

= 5000 × (1.0205^(-41)   = 2,175.89

<em>Step 3:Price of the bond </em>

Total present Value = 1,946.47  +  2,175.89  = 4,122.36

Price of the bond = $4,122.36

 

5 0
3 years ago
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