Answer:
The correct answer is letter "D": The relevant time horizon is short.
Explanation:
Time horizon is the length of time you can part with your money before you need it again. If you have a long time horizon, there are more opportunities to make a profit out of an investment but if the time horizon is short there are more possibilities to end up with losses out of an investment. In other words, <em>the longer the time horizon the most likely to profit and the shorter the time horizon the most likely to end with losses</em>.
Answer:
True
Explanation:
The statement is true because according to dividend growth method the price of the given preferred stock is $81.25.
Formula to calculate the prce of share using Dividend growth method is
Price of share = D0 / (Rate of return - Growth rate)
In case of preferred stock a stable dividend is paid and there is no growth in the dividend payment.
so
Price of share = D0 / (Rate of return - 0)
Price of share = D0 / Rate of return
Share price = $6.5 / 0.08
Share Price = $81.25
Answer:
Option "D" is most suitable answer for the question.
Explanation:
Ceteris paribus involves keeping all other variables stable. So in our situation, because we recognize that a rise in tuition fees could result in fewer people deciding to join college, we believe that other causes that we don't realize might affect fewer people choosing to join university will stay.
Therefore Option "D" is the most suitable option for the above type of problem.
Answer:
b. Raw materials inventory.
Explanation:
There are basically three cycles to make a product ready to sale
1. Raw material
2. Work in process
3. Finished goods
The raw material is the part of the product. In the work in process, the products parts are in process to combine all the parts of the products. And, in the finished goods cycle, after processing the product, the product is finished and then the product is ready to sale.
The costs of goods sold and the conversion cost are the cost which are related to the product
Answer:
The answer is A. demand for money falls and the interest rate falls
Explanation:
The demand for money is the amount of money or amount of wealth households or businesses choose to hold in the form of money(cash or cash-equivalent).
When the price level decreases, the purchasing power of consumers increases, so consumers' demand for money will be reduced or lower. The transactional demand for money will be reduced.
Also when price level decreases, interest rate falls. Because the purchasing power of consumers has been increased, the excess money will be kept in banks and the increases the money supply. So with an increase in money supply, interest rate will be reduced to encourage borrowing.
