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2 years ago

In the Investment marketplace, Investors will likely accept a high-risk investment only if it promises

Business

1 answer:

katrin2010 [14]2 years ago

6 0

Answer: C. high returns

Explanation: Risk-return tradeoff is an investing theory which indicates that as higher the risk, the greater the return reward. In order to determine an acceptable risk-return tradeoff, investors need to weigh several aspects, including total risk exposure, the ability to substitute missing capital, and more.

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A bank agrees to lend via simple loan $100 today to Thomas. The agreement is based on that the yearly interest rate is 15%. If T

Ede4ka [16]

Answer:

$404,55 (cumulative) or $250 (american)

Explanation:

This explanation considers a cumulative interest rate in the simplest way. And american amortization system. Consider that there is also French and German systems which works differently depending on the way the loan reimbursed

Cummulative Interest Rate:

Consider this:

If Thomas had to return it in one year he would have to return $115 ($100+15%) which is equal to 100*(1+0.15)

Now, at the begining of the second year, his debt is $115, and at the end its $115+15% = 132,25. Which is equal 100*(1+0.15)*(1+0.15), this is equivalent to 100*(1+0.15)^{2}

The general formula for cummulative interest is C(1+i)^{n}

Where

C = is the loan amount [in this case: 100]

i = is the interest rate [in this case: 0.15]

n = is the number of periods until [in this case: 10]

American System

The american system is quite straight forward:

Thomas should pay $15 every year for 10 years, and with the last payment he should pay $115.

This is because in this system Thomas returns the capital (the amount of the loan) at the end; and each year he only pays the interest .

$15*10 + $100 = $250

7 0

3 years ago

AJ Manufacturing Company incurred $50,000 of fixed product cost and $40,000 of variable product cost during its first year of op

inn [45]

Answer:

Sales= 160,000

COGS= (40,000 + 50,000)= (90,000)

Gross profi= 70,000

Other expenses:

Fixed selling and administrative costs= (16,000)

Variable selling and administrative costs= (13,000)

Net operating income= $41,000

Explanation:

Giving the following information:

$50,000 of the fixed product cost

$40,000 of variable product cost during its first year of operation.

$16,000 of the fixed selling and administrative costs

$13000 of variable selling and administrative costs.

The company sold all of the units it produced for $160,000

Under GAAP requirements, the income statement follows this structure:

Sales Revenue

(Cost of goods sold)

=Gross profit

(Operating expenses)

Income from other Operations

= Earnings before interest and taxes (EBIT)

(interest)

= Earnings before Tax

(Tax)

=Net operating income

In the example:

Sales= 160,000

COGS= (40,000 + 50,000)= (90,000)

Gross profi= 70,000

Other expenses:

Fixed selling and administrative costs= (16,000)

Variable selling and administrative costs= (13,000)

Net operating income= $41,000

7 0

3 years ago

On January 1, 2016, Telespace Inc. grants 6 million non-qualified stock options to its employees. The stock options have exercis

Zina [86]

Answer:

$30,000,000

Explanation:

compensation expense = total number of stocks granted x grant date value = 6,000,000 x $15 = $90,000,000

this expense will be allocated proportionally during the vesting period = $90,000,000 / 3 years = $30,000,000 per year

compensation expense per year (2016, 2017, 2018) = $30,000,000

4 0

3 years ago

Customers compare brands and plan for the purchase of which products?

UkoKoshka [18]

Answer

Customers compare brands and plan for the purchase of a speciality product.

Explanation

These are those products that have unique characteristic and brand identification where specific customers are willing to make a purchase of the product with personal efforts.These products apply to specif customers who are willing to make an effort during the purchase process.A Ferrari can serve as a good example.

6 0

2 years ago

Read 2 more answers

The conviction of CEO Jeffrey Skilling for fraud, conspiracy, and insider trading addressed: a.Ethical failings at the societal

SpyIntel [72]

The conviction of CEO Jeffrey Skilling for fraud, conspiracy, and insider trading addressed ethical failings at the individual level.

b) Option is correct

<h2>What is Ethical failings at the individual level?</h2>

Although ethics may initially seem to be a personal problem, it is actually a process that involves everyone. You can feel a lot of pressure to act unethically from coworkers, superiors, or any other aspect of the workplace culture. People may hate these requirements and try to dodge the issues.

Ethical principles are generally institutionalized into laws and regulations when there is widespread agreement about a violation, such as laws. These laws, along with occasionally unwritten societal conventions and beliefs, influence the local context in which people operate and do business. Values and opinions are influenced by a person's family, neighborhood, friends, local and global culture, society, religion, or other types of communities.

Learn more about Ethics and business ethics here:

brainly.com/question/11952372

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4 0

1 year ago