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3 years ago

What does the phrase high risk = High reward mean when it comes to investing?

1 answer:

7 0

Answer: The phrase “higher risk, higher reward” is used in the general sense to set ratios between riskier stocks and more stable bonds and cash holdings. Investors adjust their risk according to their station in life.

Explanation:

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Elza [17]

Answer:

My best guess will have to be A

Explanation:

most research I did was talking about money stability

8 0

2 years ago

Read 2 more answers

Which method of international expansion causes the least amount of risk? multiple choice joint venture licensing wholly owned su

svetlana [45]

Exporting has the least amount of risk. This is because the company is simply selling its wares to other businesses and consumers, without having to worry about licensing the product, getting permissions from other governments, or having to jump through loopholes to get the product in the hands of the intended audience.

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3 years ago

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month

statuscvo [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Claimjumper Makeover

Total Sales:

Claimjumper= $116,000

Makeover= $58,000

Total= $174,000

Variable expenses:

Claimjumper= $35,800

Makeover= $7,700

Total= $43,500

Contribution margin:

Claimjumper= $80,200

Makeover= $50,300

Total= $130,500

Fixed expenses 83,250

Sales proportion:

Claimjumper= 116,000/174,000= 0.67

Makeover= 58,000/174,000= 0.33

Variable cost proportion:

Claimjumper= 35,800/43,500= 0.82

Makeover= 7,700/43,500= 0.18

First, we need to calculate the contribution margin ratio for the company:

Weighted average contribution margin ratio= (weighted average selling price - weighted average unitary variable cost)/ weighted average selling price

Weighted average contribution margin ratio= 130,500/174,000

Weighted average contribution margin ratio= 0.75

Now, we can calculate the break-even point in dollars:

Break-even point (dollars)= fixed costs/ Weighted average contribution margin ratio

Break-even point (dollars)= 83,250/0.75

Break-even point (dollars)= $111,000

Finally, we structure the income statement:

Sales= 111,000

Total variable costs= (111,000*0.25)= (27,750)

Income statement:

Sales:

Claimjumper= 111,000*0.67= 74,370

Makeover= 111,000*0.33= 36,630

Variable costs:

Claimjumper= 27,750*0.82= (22,755)

Makeover= 27,750*0.18= (4,995)

Contribution margin= 83,250

Fixed costs= 83,250

Net operating income= 0

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3 years ago

Mariko, of Mariko's Dress Shop, announced to her employees that they were switching to a flexible benefits plan. The employees w

AURORKA [14]

Different assessments change-specific reason contributed to the growing employee resistance to the change.

Explanation:

Business assessments have become an important part of knowing how a business plan feels, how it operates and what it doesn't looks like.

From all points of view, business people would have preferred to spend more moment in strategic thinking. Just 2% of the participants believed that a superior product would have been better than just a better plan in their business.

It seems that a organisational appraisal is so critical. It's definitely time for a market review if you've got a dream for your company, but don't know what else to say in creating a strategy preparing for success. From everywhere, you can develop your business plan and highlight your specific targets and how you will accomplish them.

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3 years ago

Yield to Call and Realized Rates of Return Six years ago, Goodwynn & Wolf Incorporated (G&W) sold a 17-year bond issue w

Sonbull [250]

Answer:

YTC = IRR = 12.844% (exact using excle of financial calculator)

using approximation formula: 12.72%

Explanation:

The call premium means it were called at 107 of the face value

1,000 x 107/100 = 1,070

The investment was for 1,000

The bond yield a six years annuity of 120

and then called at 1,070

We need to know teh YTC:

$YTC = \frac{C + \frac{P-F}{n }}{\frac{P+F}{2}}$

Coupon payment =1,000 x 12% = 120

Call Price: 1070

Face Value: 1000

n: 6 years

$YTC = \frac{120 + \frac{1,070-1,000}{6}}{\frac{1,070+1,000}{2}}$

YTC = 12.7214171%

This method is an aproximation to the YTC

To solve for the YTC we can use excel IRR funtion

we write

-1,000 (investment)

120

+1,070+120 = 1,190 (total cashflow at year 6 call price and coupon)

and we calculate IRR selecting this values:

which give us 12.844%

Which is close to our approximation.

8 0

3 years ago