What is stock? Explain in your own words.

1 answer:

4 0

Answer:Definition: What are stocks? Stocks are securities that represent an ownership share in a company. For companies, issuing stock is a way to raise money to grow and invest in their business. ... When you own stock in a company, you are called a shareholder because you share in the company's profits.

Explanation:

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Two investors have the following pattern of expected returns (Before-Tax Cash Flows): Investment A: Y1: $5,000; Y2: $10,000; Y3:

Arada [10]

Answer:

Investment A = 11.089%

Investment B = 12.772%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The internal rate of return can be calculated using a financial calculator

For investment A,

Cash flow in year zero = -$110,000

Cash flow in year 1 = $5,000

cash flow in Y2 = $10,000

cash flow in Y3 = $12,000

Cash flow in Y4 = $15,000 + $120,000 = $135,000

Irr = 11.089%

For investment B,

Cash flow in year zero = -$120,000

Cash flow in year one = $2,000

cash flow inY2: $4,000

cash flow in Y3: $1,000

cash flow in Y4: $5,000 + $180,000 = $185,000

IRR = 12.772%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

4 0

3 years ago

Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(n) __________ d

kvasek [131]

Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(n)<u> inside </u>director.

A director is a person on the company's board of directors who acts as the governing body of the organization. The board of directors, often elected by the company's shareholders, creates policy for the company as a whole and oversees leadership positions in the organization. They guide, advise and run the organization.

Board members are part of the governing body of the organization. Committed to the long-term interests of the organization, they meet regularly to oversee and direct operations, set policy, approve business decisions, evaluate operating performance, and carry out fiduciary responsibilities.

The board membership application process includes several steps. In most corporate boards, a nominating committee interviews candidates and decides who should join the board. Board members then vote on whether to elect the candidate selected by the nominating committee.

Disclaimer: Learn more about board members here brainly.com/question/28140899

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4 0

1 year ago

What is the appropriate accounting treatment for the value assigned to in-process research and development acquired in a busines

Vera_Pavlovna [14]

Answer:

Capitalize as an asset.

Explanation:

6 0

3 years ago

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