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2 years ago

For each of the following, indicate which type of investment risk is being described.

Business

1 answer:

Goshia [24]2 years ago

5 0

Answer:

a. The ne research may go against the whole gram cereals and people will consume it less therefore demand may be lowered causing the sales and profit to decrease.

b. The increase level of gearing makes the company risky and people do not prefer to invest in the company which have high gearing. The increase debt and interest burden may cause company to become bankrupt and there can be threat for solvency.

c. The bargaining power of buyer is high in such case where the seller finds it difficult to find a suitable buyer.

Explanation:

Investment risk is the risk associated with the business or new investment project. There should be detailed analysis of risk and return before investing in any project. It is better to understand the nature of risk and the extent to which it can hinder the progress of the business.

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On January 1, 20X8, Polo Corporation acquired 75 percent of Stallion Company's voting common stock for $300,000. At the time of

lions [1.4K]

Answer:

Explanation:

Base on the question been given to us, we can solve this using equity method as seen below

Investments in Polo = 300000+0.75*(40000-10000-5000*)

300000+0.75*(25000)

300000+18750

$318,750

Increase in value of Patent $50,000

Economic Life 10

Amortization $5,000

The $ 5000 would be reduced from the net income

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3 years ago

If you write a check for an amount greater than your account balance, the result will be _______.

Salsk061 [2.6K]

<span>the result will be an overdraft </span>

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3 years ago

Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,770,000 instal

inessss [21]

Answer:

Chevron Phillips (CP)

a. The gross income or annual savings is:

= $804,846.

b. The income tax for the 1st year assuming a marginal tax rate of 40% is:

= $131,600.

c. The after-tax cash flow for the 1st year is:

= $559,400.

Explanation:

a) Data and Calculations;

Cost of new laboratory equipment = $1,770,000

Borrowed capital = $849,600 ($1,770,000 * 48%)

Borrowing rate = 13.4%

Borrowing interest expense for the first year = $113,846

Depreciation = $362,000

Taxable income = $329,000

Gross savings = $X

$X = $804,846 ($113,846 + $362,000 + $329,000)

Income tax for the 1st year:

Marginal tax rate = 40%

Taxable income = $329,000

= $131,600 ($329,000 * 40%)

After-tax Cash Flows for the 1st year:

Gross savings = $804,846

Interest expense 113,846

Depreciation 362,000

Taxable income $329,000

Income tax 131,600

Net income $197,400

Cash Flows:

Net income $197,400

Depreciation 362,000

After-tax cash flow $559,400

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3 years ago

Gunnar, the Director of Operations at Fantastic Foods, has worked with other managers over the years to set up groups and teams

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If Gunnar, the Director of Operations at Fantastic Foods. One of the recent groups, which is also a team, is the dean search committee.

Team are member of a group that come together in unity to resolve issue and to achieve their set goals and objectives.

The recent group will be the dean search committee which aim is to interact or communicate frequently by making use of different communication means over a period of several months.

Therefore One of the recent groups, which is also a team, is the dean search committee.

Learn more about team here: brainly.com/question/11352260

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2 years ago

Which one of these affects the length of the cash cycle but not the operating cycle? A) Inventory period B) Accounts payable per

kifflom [539]

Answer:

E) Both the accounts receivable and the accounts payable periods

Explanation:

The account receivable and the accounts payable affect the length of the cash cycle. This is because, the longer the cash cycle, the more likely a firm will need external financing.

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3 years ago