Answer:
d- high risk
Explanation:
A speculative investment is characterized by a high risk of losing its value but offers the possibility of high return. An investor will buy the investment to profit from market value changes. A speculator is an investor who engages in speculative business.
A speculator's motive is to profit in the short run from an asset. He or she is not concerned by the fundamental value of the asset, only its price volatility. Dividends or interest other financial indicators of an asset are the least of his or her concerns. A speculator focuses on the expected future price of the asset.
Speculative investments happen in real estate markets, currencies, stocks, and commodity futures.
Answer:
Making bread
Explanation:
Lyta has to specialize in making bread. By specialization, it means that lyta should focus it's productive efforts on making bread, because from the question she clearly has an absolute advantage in making bread Since the question says she is more efficient in making bread compared to the other product. It means she can produce bread in larger quantities at same cost or she can produce same quantity of bread at lower cost.
Answer:
A. The products' contribution margin per unit of constraint
Explanation:
When resources are constrained, the products' contribution margin per unit of constraint should be used to guide product mix decisions.
A product mix is referred to the the entire range of products that is offered by a company.
The products' contribution margin per unit of constraint is the contribution margin per unit which is divided by the units of resources that are constrained in order for the production of one unit.
Answer:
31.5%
Explanation:
Given from the question kd = 7.0 %
Tax rate = 35 %
P0 = $ 28.86
Growth g = 4.9 %
D1 = $ 0.94
First find the cost of common stock by
rS = D1/P0 + g
=0.94/$28.86 + 0.49
=0.523
= 52.3%
Finally, calculate the weighted average cost of capital WACC,
using rs= 0.523,
Tax rate =43% =0.43
Equity E 100% - 43% = 57% =0.57 and
kd=7.0 % = 0.07
so WACC = (D/A)(1 - Tax rate)kd+(E/A)rs
= 0.43(1 - 0.43)(0.07) + 0.57(0.523)
0.0172 + 0.298
= 0.315
= 31.5%
Answer:
Explanation:
Cash flow from operating activity = cash collected from customers - salaries paid - cash paid to suppliers
Cash flow from operating activity = $89,300 - $32,100 - $12,500
Cash flow from operating activity = $44,700
