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trasher [3.6K]
3 years ago
12

Many investment advisors argue that after stocks have declined in value for 2 consecutive years, people should invest heavily be

cause the market rarely declines 3 years in a row. a) Since the stock market began in 1872, there have been two consecutive losing years eight times. In six of those cases, the market rose during the following year. Does this confirm the advice
Business
1 answer:
Serhud [2]3 years ago
6 0

Answer: Yes it does

Explanation:

The investment advisors say that the market rarely declines three years in a row.

Since 1872, it has declined two years in a row 8 times and three years in a row, only twice.

This means out of 8 times, it declined twice. Percentage of times it declined was:

= 2 / 8 * 100%

= 25%

25% while not rare, is a good enough percentage to trust the advice of the investment advisors.

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Phil Graves Cemetery had 63,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the f
Whitepunk [10]

Answer:

Dividends for the year $63,000

Explanation:

Phil Graves Cemetery

Jan. 1 Shares issued and outstanding 63,000

June 1 2-for-1 stock split x 2

June 1 Shares issued and outstanding 126,000

Oct. 15 Cash dividend declared (per share)x $ .50

Dividends for the year $63,000

Therefore the amount that Graves should report as dividends is $63,000

7 0
3 years ago
If a firm accepts less than all of its prospective projects with positive NPVs when evaluated at their own risk-adjusted costs o
gtnhenbr [62]

Answer: True

Explanation:

  Yes, the given statement is true that the employing capital rationing is one of the process in which it placing some restriction on the investment amount of the project in an organization.

 In the capital rationing strategy, if the company accepts less amount from all its prospective projects along with some positive net profit value (NPVs) the it is evaluated on the basis of their own risk.

 The employ capital rationing helps in making various types of decisions related to investment for the company and in this system only limited projects are taken due to the limitation of the resources.  

 Therefore, The given statement is true.

3 0
3 years ago
Jagadison Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of
Olegator [25]

Answer:

$360,308

Explanation:

The computation of the  total amount of interest revenue is shown below:

But before that we have to determine the annuity payment per year which is

​Annuity payment per year is

= Fair value ÷ PVIFA for 10% for 5 years

= $991,692 ÷ 5.868

= $169,000

Now Total payments for eight years is

= $169,000 × 8

= $1,352,000

So, the amount of interest revenue is

= Total payments made for eight years - Fair value

= $1,352,000 - $991,692

= $360,308

8 0
4 years ago
A 10-year maturity zero-coupon bond selling at a yield to maturity of 7.25% (effective annual yield) has convexity of 157.5 and
TiliK225 [7]

Answer:

For Zero coupon: 545.52

Explanation:

Check attachment

7 0
3 years ago
Read 2 more answers
A conglomerate is ________ a giant corporation composed of many smaller corporations. a corporation in the manufacturing sector.
alexdok [17]

Answer:

a giant corporation composed of many smaller corporations.

Explanation:

This option is not 100% right, but the other options were completely wrong. A conglomerate is a corporation that operates in totally different and unrelated industries. For example, a conglomerate can operate in the energy sector, financial services, education services, cruise lines, and agriculture. No two industries are even related to one another, and that is what operates a conglomerate from a normal corporation. E.g. Samsung is a conglomerate because it operates an electronics business, manufactures cars, builds ships, operates funeral homes, etc.

4 0
3 years ago
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