1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rom4ik [11]
3 years ago
15

The higher the _____ that future earnings may not be achieved, the higher the return on investment investors demand.

Business
1 answer:
yaroslaw [1]3 years ago
8 0
<span>If there is a higher risk on future earnings, then the return needs to be high to meet these risks. Safer stocks tend to have lower rates of return, but are more likely to meet their earnings goals. Stocks with these higher risks inherent will also tend to bring returns that far outstrip these safe investments.</span>
You might be interested in
Campbell Corp. exchanged delivery trucks with Highway, Inc. Campbell's truck originally cost $23,000, its accumulated depreciati
iragen [17]

Answer:

equipment    3,700

Explanation:

First we calcualte the values of the machine given up:

<u>traded-out assets</u>

purchased  23000

depreciation <u>20,000 </u>

book value   3,000

fair value   5,000

gain on disposal   2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash                   700

traded-out        <u>5,000 </u>

total value         5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain       (2,000)

accounting value 3,700

The machine will enter the accounting with 3,700

journal entry

equipment    3,700

acc del        20,000

   equipment            23,000

  cash                             700

3 0
3 years ago
The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, w
nikitadnepr [17]

Answer: the answer is 90.0

Explanation:

From the question above, we are given:

G = 11

I = 4

X = M = 0

Consumption function is:

C = k + cY

Where:

k = 3

c = 0.8

The GDP of a nation is given as:

Y = C + I + G + NX

By imputing the values into the GDP equation, we have:

Y = k + cY + 4 + 11 + 0

Y = 3 + 0.8Y +15

Y - 0.8Y = 18

0.2Y = 18

Y = 90.0

6 0
3 years ago
invisible hand in Adam Smith's theory turns self-directed gain into social and economic benefits for all. true false
timofeeve [1]

Answer:

TRUE

Explanation:

Adam Smith 'Laissez Faire' Theory implies : Markets as free mechanisms are best, they are guided by self interest which tends to bring best socio economic welfare by increasing wealth. The market 'Invisible Hand' acts as an automatic stabiliser to any economic discrepancy & any government intervention is unnecessarily distortionary.

3 0
3 years ago
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pa
JulsSmile [24]

Answer:

utmost good faith

Explanation:

The utmost good faith refers to the principle in which both the parties are acted honestly i.e it disclosed all the information related to the insurance and does not misguide anything to gain a benefit in term of profit

Therefore in the given case, there is a contract made between the two parties where they trust each other and hope that they treated each one in a honest manner

So this situation represent the utmost good faith

3 0
2 years ago
winston baker will invest $25,000 in a spa that his sister is starting. he will triple his investment in six years. what is the
Ronch [10]

Winston Baker will put $25,000 into his sister's new spa. In six years, he will have tripled his investment. Winston has been promised a 20% rate of return.

<h3>What is meant by Rate of returns?</h3>
  • The annual rate of return is the percentage change in an investment's value. For instance, if you assume a 10% annual rate of return, you are assuming that the value of your investment will rise by 10% each year.
  • A rate of return (RoR) is the net gain or loss of an investment over a given time period expressed as a percentage of the initial cost of the investment.
  • When you calculate the rate of return, you are calculating the percentage change from the beginning to the end of the period. ROI is calculated by subtracting the initial cost of the investment from the final value, dividing the result by the cost of the investment, and finally multiplying it by 100.

To learn more about Rate of returns, refer to:

brainly.com/question/24301559

#SPJ9

6 0
1 year ago
Other questions:
  • The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $
    5·1 answer
  • Which of the following is a internal event?
    12·2 answers
  • Which statement describes an hourly wage job? Each paycheck is the exact same regardless of number of hours worked. Each paychec
    5·1 answer
  • The three things counselors should listen for are clients' concerns, feelings about the concerns, and​ a. ​ the expectation the
    15·1 answer
  • Nevada company paid to the state $1,800 in sales tax that it had previously collected from customers. what type of transaction w
    11·1 answer
  • Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a
    15·2 answers
  • Inbound logistics (receiving and storing materials for distribution to production), operations (transforming inputs into finishe
    6·1 answer
  • What type of insurance would you consider the most important?
    15·1 answer
  • Richard’s annual college expenses are expected to total $17,745. He will receive $5,320 in grants. How much will Richard need to
    10·2 answers
  • Lendell Company has these comparative balance sheet data: Additional Information for 2017: Net income was $25,000. Sales on acco
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!