An investment adviser has a client who wants to save for college for her child. the child will be entering college in five years. this would be an example of <u>an </u><u>investment constraint</u>.
More about investment constraint :
The variables that restrict or limit an investor's range of investment possibilities are known as investment restrictions. The limitations may be internal or external restrictions. While external restrictions are produced by an outside party, such as a government agency, internal constraints are produced by the investor themselves.
Cash expenditures anticipated and necessary at a given point in the future that are often more than the revenue available are referred to as liquidity constraints. Time Horizon restrictions refer to the time frames over which the portfolio's returns are anticipated to meet particular needs in the future.
Tax constraints depend on when, how, and if returns of different types are taxed. Legal and Regulatory constraints are mostly externally generated and may affect only institutional investors
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Answer:
A
Explanation:
the price of product will increase
Answer:
$4 per share
Explanation:
The formula to compute the regular yearly dividends in the future is shown below:
= Free cash flow ÷ outstanding shares
= $40 million ÷ 10 million shares
= $4 per share
It shows a relationship between the free cash flow and the outstanding shares
All other information which is given is not relevant. Hence, ignored it
Answer:
The answer is given below.
Explanation:
A) - In the following case, the stakeholders seem to be the chairman of that company, the Controller of that company. The Stockholders as well as all the other group that has an interest in the organization's balance sheet, including an investment manager or even a banker seeking to give cash.
B) - Yes, the appeal of the chairman raises the legal issues for such a manager. Due to confusing income reports as suggested by the chairman, the operator poses a moral issue. In the viewpoint, for safeguard the interests of big business and not to confuse customers by representing wrong net profits, the manager will be guided. Required to disclose correct net profit that, on effect, influences their rate of growth ratio. Aggregate-income growth gives a clear view of the pace where the businesses also raised their earnings. All others remaining identical, shares having stronger net profit rates of growth are much more attractive as compared to others.
C) - Yes, of course, the manager will be worried about the rate of growth of that company due to the rate of growth that should be focused upon rational as well as reliable income reports. The manager does not file income reports for the chairman's goal of meeting or retaining the defined rate of growth. The following inflation rate would be focused upon operational and financial performance, not on some distorted financial reporting.
Answer:
= 5,200
Explanation:
Let the sales units be represented by variable X
Profit = Revenues -COGS -Fixed costs
Revenues = Selling price *X = $5X
COGS = $2.5X
Fixed costs = $3,000
Desired profit = $10,000
Therefore;
10,000 = 5X -2.5X - 3,000
Add 3,000 on both sides;
10,000 +3,000 = 2.5X
13,000 = 2.5X
Divide both sides by 2.5 to solve for X;
13,000/2.5 = X
X = 5,200
Therefore, the sales level in units is 5,200
