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2 years ago

Which of the following statements about investing is

Business

1 answer:

GREYUIT [131]2 years ago

3 0

Answer:

B.Investing is riskier than putting money in a savings

accounts.

Explanation:

Savings refers to putting money aside for future consumption. Most firms and individuals save in savings accounts because they are safe and secure. Saving is considered risk-free, meaning the money saved is highly-unlikely to be lost.

Investing is engaging in commercial activities to make profits and grow wealth. Money put into an investment project is active, unlike the funds in a savings account. Investing has higher returns than savings but is also riskier. Money saved earns little interest on will remain the same but money invested can generate high profits or suffer losses.

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You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in t

Eddi Din [679]

Answer:

See below

Explanation:

Lots of debt

1a.

Debt equity ratio

Debt ratio = debt 1 / Asset 1

Debt ratio = $30.25 / $32.50

Debt ratio = 93.1$

Equity multiplier = Asset 1 / Equity 1

Equity multiplier = $32.50 / $2.25

Equity multiplier = 14.4 times

Debt to equity ratio = debt 1 / equity 1

Debt to equity ratio = $30.25 / $2.25

Debt to equity ratio = 13.4%

Lots of equity inc.

Debt equity ratio = debt 2 / asset 2

Debt equity ratio = $2.25 / $32.5

Debt to equity ratio = 6.9%

Equity multiplier = Asset 2 / Equity 2

Equity multiplier = $32.5 / $30.25

Equity multiplier = 1.1 times

Debt to equity ratio = Debt 2 / Equity 2

Debt to equity ratio = $2.25 / $30.25

Debt to equity ratio = 0.1 times

6 0

2 years ago

In a(n) ________ strategy, managers try to gain a competitive advantage by focusing the energy of all the organization's departm

Vedmedyk [2.9K]

Answer:

low-cost

Explanation:

I may not be right, so use this as a last resort if necessary.

6 0

1 year ago

After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe would like a 15-year term polic

polet [3.4K]

It should be Joe and ISADORA and it should be ISADORA 37 and Joe 48

6 0

2 years ago

Reynolds Construction's value of operations is $750 million based on the free cash flow valuation model. Its balance sheet shows

zhuklara [117]

Answer:

option (d) $500

Explanation:

Data provided in the question:

Reynolds Construction's value of operations = $750 million

short-term investments = $50 million

accounts payable = $100 million

notes payable = $100 million

long-term debt = $200 million

common stock = $40 million

retained earnings = $160 million

Now,

Firm value of equity

= Free cash flow value + Investments - Debt - Notes payable

= $750 million + $50 million - $200 million - $100 million

= $500 million

Hence,

the correct answer is option (d) $500

6 0

3 years ago

The real estate contract for a specific property for use as an unlicensed petroleum sales operation was forced to terminate.

motikmotik

Answer: A. Impossibility of performance

Explanation:

Impossibility of contract is a doctrine where by a contract is rendered invalid on the bases of uncontrollable circumstances which renders performance of contract impossible. Impossibility of performance can be difficult to prove.

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2 years ago