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2 years ago

What is your ownership in a stock represented by

Business

1 answer:

vitfil [10]2 years ago

4 0

Answer:

A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares."

Stocks are bought and sold predominantly on stock exchanges (though there can be private sales as well) and are the foundation of many individual investors' portfolios. These transactions have to conform to government regulations that are meant to protect investors from fraudulent practices. Historically, they have outperformed most other investments over the long run. These investments can be purchased from most online stockbrokers

Explanation:

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An investment proposal with an initial investment of $100,000 generates annual net cash inflow of $20,000 for a period of 10 yea

dalvyx [7]

Answer:

5 years

Explanation:

Initital investment $100,000

Cash inflows 1-5 (20,000*5) ($100,000)

The payback period for this investment project is 5 years.

100,000/20,000=5 years

7 0

4 years ago

Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture and sell festive balloons.

Sergeeva-Olga [200]

Answer:

NO Balloons' WACC = 7%

Explanation:

WACC = Weighted average cost of capital

The weighted average cost of capital (WACC) refers to calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.

Respective calculation of WACC:

Step 1: Calculate the value of equity:

Number of shares = 12 million

Share price = $19.5 per share

Value of equity = 12 million shares * 19.5/share = $234 million (A)

Step 2: Calculate the value of debt:

Bonds = 200,000

Value of debt = 200,000 bonds * 1000 face value/bond * 89% sale price = 178 million (B)

Step 3: Calculate the firm value:

Total firm value (A+B) = 234 + 178 = 412 million

Step 4: Calculate the weight of equity:

Dividing the value of equity to total firm value:

Weight of equity = 234 / 412 = 0.5680

Step 5: Calculate the weight of debt:

Dividing the value of debt to total firm value

Weight of debt = 178 / 412 = 0.4320

Step 6: Calculation of WACC :

WACC = weight of equity * cost of equity + weight of debt * cost of debt = 0.5680 * 9.275% + 0.4320 * 4% = 7%

7 0

3 years ago

Why would a large crop surplus be a problem for farmers? A. Surpluses are destroyed by the government. B. Surpluses drive down p

Vladimir79 [104]

Answer:

The answer is b. Surpluses drive down prices

Explanation:

If you have a large volume of crops, it would not drive up the price simply because there is not a lot of demand for the crop. In that sense, both c and d (even though d is relevant to the equipment) are incorrect. If there is a lot of surplus, farmers will have to lower their prices in order to sell it. They lose in profit which is why large crop surplus are a problem for farmers.

3 0

3 years ago

With the introduction of robotics to automotive manufacturing, there have been sweeping changes to the automotive assembly line,

9966 [12]

Answer:

An assembly line worker with 10 years of screwing together truck panels and a high school diploma

Explanation:

The assembly worker is involved in manual work and he is most likely to lose his job due to automation. Also, since he is just a high school diploma holder, he lacks better skills to switch to higher level jobs.

3 0

3 years ago

Read 2 more answers

Which of the following is a cost of selling merchandise on account? Multiple Choice Uncollectible accounts expense Determining c

puteri [66]

Answer:

Option D is the answer.

Explanation:

All the given options describe the reasons for accepting a credit card from the customers.

8 0

3 years ago