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
olasank [31]
3 years ago
8

You are deciding whether to buy a stock in Company X or Company Y. Both companies need $1,000 capital investment and will earn $

200 in good years( with probability of 0.5) and $60 in bad years. The only difference between the companies is that Company X is planning to raise all of the $1000 needed by issuing equity, while Company Y plans to finance $500 through equity and $500 through bonds on which 10 percent interest must be paid. construct a table showing the expected value and standard deviation of the equity return for each of the companies. Based on this table, which company would you buy stock? Explain your choice
Business
1 answer:
lyudmila [28]3 years ago
4 0

You would buy stock from company y

You might be interested in
Gorton's sells Gorton's Fish Sticks, Gorton's Fish Fillets, and Gorton Grilled Fish. This is an example of
dimaraw [331]

Answer:

The correct answer is letter "A": family branding.

Explanation:

Family branding is a strategy entrepreneurs follow by naming the same or partly equal different businesses with diverse markets to take advantage of the reputation one of those businesses have obtained. The naming is legal and in most cases represents a partnership between those businesses or a license given by the main company to allow others to use part of the same name in exchange for a fee.

6 0
3 years ago
When you should send an email
Greeley [361]

B. When the subject matter is objective and informative

8 0
3 years ago
Read 2 more answers
What is "transfer pricing?" The prices established to record an intercompany sale The taxes paid on sales in a foreign country T
Lisa [10]

Answer:

Transfer pricing are the prices established to record inter-company sale

Explanation:

The transfer price is the price at which one arm of a business sells to the other.For instance,the price at which one division of a company sells to  another division,

The transfer price is very important in order that tax authority may see that the sale price charged is at arms length for all parties involved.

6 0
3 years ago
Read 2 more answers
The expected average rate of return for a proposed investment of $500,000 in a fixed asset, with a useful life of four years, st
Natalka [10]

Answer: 48%

Explanation:

Based on the information given, the average rate of return will be:

= (Average return) / (Average Investment) x 100

where, average return will be:

= ($240000 × 4)/4

= $240000

Then, annual averay rate of return will be:

= $240000/$500000 × 100

= 48%

6 0
3 years ago
What are the costs of “freebie” items?
Oliga [24]

Answer:

The costs of a “freebie” item includes resources to make, a person's labor, and the cost to the store to offer it to us as free.

Explanation:

3 0
4 years ago
Other questions:
  • What are ethics? how would they apply to business and technology?
    11·1 answer
  • company has bonds outstanding with a par value of $110,000. The unamortized premium on these bonds is $2,585. If the company ret
    10·1 answer
  • Vivian, as a vice-president of marketing, is far removed from the research and development department. However, she keeps a clos
    12·1 answer
  • Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.
    14·1 answer
  • What steps should to you take to prioritize your workload?
    9·2 answers
  • John is an expediter for a paper goods manufacturer. he has been asked to track how much time he spends traveling to and from ea
    15·1 answer
  • Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances at the beginning and end
    6·1 answer
  • Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had ac
    12·1 answer
  • Virginia Enterprises makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 30
    12·1 answer
  • Question 3 of 10
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!