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3 years ago

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.

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

The optimal point is the quantity that yields the lowest cost
Start with the lowest price
If the minimum point is feasible
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.

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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.

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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

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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.

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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

What are the advantages and disadvantages of common stocks​

What are the advantages and disadvantages of common stocks