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3 years ago

Historically, the risk an investor is willing to accept, the the potential return for the investment.

Business

1 answer:

iVinArrow [24]3 years ago

3 0

Answer:

The correct option is (A) more, greater

Explanation:

According to the risk return trade off, the risk is increased with the return that means if the returns are increased the risk is also increased and vice versa

So as per the given scenario, if there is more risk that investor wants to accept so the return should be more for the investment. This represents the direct relationship between the risk and return of the investment

hence, the correct option is (A) more, greater

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Control Inc. has no debt and a total market value of $100,000. EBIT are projected to be 6,000 if economic conditions are normal.

Zinaida [17]

Answer:

$3.12

Explanation:

For expansion:

EBT = EBIT - Interest

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= $7,800 - $0

= $7,800

Earning per share for the case of strong expansion period before any debt is issued:

= Net income ÷ Number of shares outstanding

= $7,800 ÷ 2,500

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3 years ago

Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that will increase sales by $12,000

mina [271]

Answer:

Explanation:

The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.

Let

u = number of units

s = selling price per unit

v = variable cost per unit

F = Fixed cost

I = Net income

I = su - F - vu

but vu = 0.3su

Hence

I = su - 0.3su - F = 0.7su - F

Given that the proposal will increase sales by $12,000,

New sales = su + 12000 ( in $)

and total fixed costs by $8,400

New fixed cost = F + 8400

New variable cost = 0.3( su + 12000) = 0.3su + 3600

New net income = su + 12000 - 0.3su - 3600 - F - 8400

= 0.7su - F

New net income is same as the old net income hence no increase.

4 0

3 years ago

Mary purchased a home in year 1 for $200,000. She made a 20-percent down payment and financed the rest with a 15 year loan at si

Serjik [45]

Answer:

If Mary decides to itemize her deductions, she can deduct $11,000 from her gross income (= $9,600 + $1,400).

Explanation:

For 2019, Mary can deduct mortgage interests from her first loan and the interests from her home equity loan as itemized deductions. Deductions are available for mortgage debt and other home equity loans up to $500,000 for single filers and $1,000,000 for married joint filers.

8 0

2 years ago

A local university has a student population that is 55% male. 60% of students are undergraduates. 38% are both male and undergra

Mandarinka [93]

The probability that a randomly selected student is female and an undergraduate = 37%

The probability of being female or an undergraduate= 1.05

<h3>The male students</h3>

The male population = 55%

Therefore female population would be 1 - 0.55 = 45%

<u>Undergraduates</u> = 60%

The male undergraduate = 38%

Therefore female undergraduates = 60%-38%

= 22%

a. The probability that a randomly selected student is an undergraduate and female

= $\frac{0.22}{0.60}$

= 37%

B. The probability that the student is female or undergraduate

P(A or B)

= Probability of female = 45/100

Probability of undergraduate = 60/100

= 0.45 + 0.60

= 1.05

Historically, the ________ risk an investor is willing to accept, the ________ the potential return for the investment.

Historically, the risk an investor is willing to accept, the the potential return for the investment.