Answer:
The statement is true.
Explanation:
The investor aversion to risk must be compensated with an increased return to make it more feasible.
If all bonds' return were the same then, investor will not invest on high risk bonds.
Company's will not issue the bond to yield higher than they can pay nor higher if they can do it the same as AAA. They do it as the only way to attract investment to his business.
Answer:
ShareHolders.
Explanation:
A share holder is the ultimate owner of any company who has invested his share in return of the profits earned.
Hence, this form of social responsibility by Pepsi will portray a positive image of Pepsi in the market and will ultimately help the shareholders in the form of increased revenue due to more sales and high profits.
I hope this helps. Best of Luck.
Answer:
Cost of machine = $73,897.99
Explanation:
The cost of machine to Swifty Corporation the present value pf the ordinary annuity payment of $20,500 per year discounted at the interest rate of 12%.
Note that the annuity is an ordinary annuity because annual payment is made at the end of the year.
Present value of ordinary annuity= annuity factor× annual payment
Present value of ordinary annuity = 20,500× 3.60478= $73,897.99
Cost of machine = $73,897.99
The answers are as follows:
7. Retire from full time work.
A 401K account is a retirement saving account that is sponsored by one's employer. This type of account allow a worker to save a portion of its salary to invest before tax are deducted from the salary. Tax are only paid on the money when they are withdrawn from the account.
8. Keep your focus on the most important goal.
Prioritizing is the process of arranging the things we need to accomplish in the order of their importance and then executing them according to their importance. Prioritizing helps one to focus one's energy on the most important thing.
9. A guess or estimate of what something will be like in the future.
Projection is an important tool in business and in personal life. Projection involves using the events that are happening now to predict what is going to happen in the future about a particular thing. Projection helps one to prepare for the happenings of the future.
10. Reserve.
Reserve refers to the amount of money you have set aside for use in case of emergency. Emergency happens at all time, at such times, it will be best to have a certain amount of money in place to cater for such emergencies. This type of money is called reserve.
11. Increase your income by working more and decrease your expenses.
An income refers to the amount of money you are paid on a regular basis because of the services your render, while expenses refers to the amount of money you spend on your needs. In order to be able to save enough money, you have to increase your income and decrease your expenses.
12. Wages is an earned income.
An earned income refers to an income which you work for, that is, you render particular services before the money is paid to you. Wages refers to the money that are paid to workers either on daily basis or on weekly basis, therefore, wages is an earned income.
13. Gift is an unearned income.
An unearned income refers to an income which you did not work for but which is given to you by some else. Financial gifts are unearned income because, the gift is not given to you as a result of the services you render.
14. Investment income is an unearned income.
The profits that one derives from investments are considered to be unearned income because one personal efforts is not involved in making the profits.
15. Salary is an earned income.
Salary refers to the money that a worker is paid on a monthly basis as a result of the services which he or she renders. Salary, is thus an earned income, because one's efforts is involved in making the money.
Answer:
A joint stock company
Explanation:
A joint stock company is a business organisation that is owned jointly by all its shareholders. All the shareholders have a specific amount of stock in the company, which is represented by their amount of shares.
Advantages of joint stock company include:
1) Large amount of capital
2) Limited Liability
3) Stability of Existence
4) High Public Confidence
5) Increased tax Benefits
6) It greatly Promotes Savings and Investment
