As an investor, what is the risk involved when investing in companies on the stock
exchange?
a. Investors can lose their existing shares if the value of the stock does not
increase within 90 days of purchase
b. Once they purchase a share, investors cannot sell them at a higher price
The price of stocks can decrease; for example, when the company
receives bad press
d. Investors are only at risk if the purchase a share when the stock price has
fallen
C.

Answers

Answer 1

Answer:d

Explanation:

The investor are only at risk if the purchase of a share when the stoc price has fallen


Related Questions

The cost of lighting and maintaining the tallest smokestack in the US (at a shuttered ASARCO refinery) is $90,000 per year. At an interest rate of 10% per year, the present worth of maintaining the smokestack for 10 years is closest to: a. $1,015,000 GE 311 Financial Decisions in Engineering Skill Development Assignment

Answers

Answer:

$553,000

Explanation:

Calculation for the present worth of maintaining the smokestack for 10 years

Present worth=$90,000(P/A,10%,10)

Present worth= $90,000(6.144567)

Present worth= $553,011.04

Present worth=$553,000 (Approximately)

Therefore the present worth of maintaining the smokestack for 10 years is closest to:$553,000

On June 30, Joanna Fabrics has the following data pertaining to the retail inventory method. Goods available for sale: at cost $38,000; at retail $50,000; net sales $40,000; and ending inventory at retail $10,000. Compute the estimated cost of the ending inventory using the retail inventory method. The estimated cost of the ending inventory

Answers

Answer: 7600

Explanation:

The estimated cost of the ending inventory would be calculated as thus'

First, we have to calculate the cost to retail percentage which will be:

= cost/retail price

= 38000/50000

= 0.76

The cost of sales would be:

= net sales × cost to retail percentage

= 40000 × 0.76

= 30400

Then, the ending inventory would then be:

= 38000-30400

= 7600

The estimated cost of the ending inventory is $7,600.

First step

Cost to retail percentage= Cost/Retail price

Cost to retail percentage = 38000/50000

Cost to retail percentage = 0.76

Second step

Cost of sales= Net sales × Cost to retail percentage

Cost of sales= 40000 × 0.76

Cost of sales= 30400

Third step

Estimated cost of ending inventory=38,000-30,400

Estimated cost of ending inventory= 7,600

Inconclusion the estimated cost of the ending inventory is $7,600.

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On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight payments of $20,000. The first payment was made on December 30, 2005, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows:

Period Present value of ordinary annuity of 1 at 11% Present value of annuity in advance of 1 at 11%
7 4.712 5.231
8 5.146 5.712

On Bart's December 31, 2005 balance sheet, the note payable to Fell was:

a. $114,240
b. $104,620
c. $94,240
d. $102,920

Answers

Answer: c. $94,240

Explanation:

On December 31, 2005, one payment has already been made which would mean that only 7 payments are left. As the first of these remaining 7 will be paid the year after, this is an ordinary annuity.

Note payable value = Present value of seven $20,000 payments

= 20,000 * Present value of ordinary annuity of 1 at 11% for 7 years.

= 20,000 * 4.712

= $94,240

1. On April 30, Gomez Services had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May

Answers

Answer:

the amount of credit sales is $47,000

Explanation:

The computation of the amount of credit sales is shown below;

= Ending balance of account receivable + cash receipts - opening balance of account receivable

= $13,000 + $52,000 - $18,000

= $47,000

Hence, the amount of credit sales is $47,000

An unacceptable treatment for the presentation of current liabilities is: A : Listing current liabilities according to amount. B : Showing current liabilities immediately below current assets to obtain a presentation of working capital. C : Offsetting current liabilities against assets that are to be applied to their liquidation. D : Listing current liabilities in order of maturity.

Answers

Answer:

The answer is c!

Explanation:

Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 520,000 $ 385,000 $ (135,000 ) ANC Corporation 470,000 520,000 50,000 Totals $ 990,000 $ 905,000 $ (85,000 ) Long term: Drake Corporation $ 520,000 $ 580,000 $ 60,000 Aaron Industries 700,000 680,000 (20,000 ) Totals $ 1,220,000 $ 1,260,000 $ 40,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry

Answers

Answer and Explanation:

1. The adjusting entry is

Net unrealised holding gain or loss $45,000 ($85,000 - $40,000)  

        To Fair value adjustment $45,000

(being net unrealized holding gain or loss is recorded)

2. In the income statement, the amount that should be reported is zero as the net unrealized gain or loss would be reported as an other comprehensive income also it is a part of the stockholder equity

A company upgraded production machinery to collect data about the fit tolerance for assembled parts of each unit produced along with environmental data such as machine temperature, parts temperature, ambient air temperature, humidity, and atmospheric pressure. Before the upgrade, only fit tolerance data was collected. The upgrade represents an increase in

Answers

Answer: Data variety

Explanation:

Based on the information provided in the question, the answer is Data Variety. Data variety has to do with the diversity of data with regards to its collection.

This can be seen from the question where we are told that only the data for fit tolerance was collected before the upgrade but the upgrade led to the collection of environmental data as well.

Therefore, the upgrade represents an increase in data variety

When the company collected only the fit tolerance data for the upgrade, the upgrade represents an increase in Data variety

The Data variety refers to the diversity of available data during data collection.

The variety of data may either be structured, unstructured and semistructured that are gathered from different sources.

Here, only the fit tolerance data was collected from the production machinery and used to decide an upgrade on the machine.

Therefore, the Data Variety is correct because its best relates to the increase in machine upgrade.

The missing options Includes "data variety, data velocity, data veracity, data validity"

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Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. During the year, net credit sales totaled $600,000, and the estimated bad debt percentage is 2%. The allowance for uncollectible accounts had a credit balance of $5,600 at the beginning of the year and $4,700, after adjusting entries, at the end of the year. What is the amount of accounts receivable written off during the year

Answers

Answer:

$12,900

Explanation:

Calculation for the amount of accounts receivable written off during the year

Beginning Balance $5,600

Add Bad debt expense $12,000

(2% x $600,000)

Less End-of-year balance ($4,700)

Accounts receivable written off $12,900

($5,600+$12,000+$4,700)

Therefore the amount of accounts receivable written off during the year will be $12,900

These are true or false!! Please help!!

1. A need is something that you desire to have because someone else has one.
2. Food, clothing, and shelter are examples of basic wants.
3. One of the problems in economics is that wants are unlimited.
4. Goods and services are produced through the use of economic resources.
5. There are only two kinds of economic resources: human and capital.
6. Labor is another name for human resources.
7. Some resources, such as clean air and water, are limited.
8. Scarcity is a problem that is faced by individuals and businesses but not by government
9. Economic decision making is important to businesses and governments but not to
individuals.
10. Economic decision making is a process requiring four important steps.

Answers

Answer:

I'm just going to write T-True n F)-False

1 F-

2 T

3 T

4 T

5 F-

6 T

7 T

8 T

9 F-

10 I'm sorry i don't know about this

Banks use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves

Answers

Answer:

the answer is D.

Maintaining reserves

Golden Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,300 hours. At the end of the year, actual direct labor-hours for the year were 21,100 hours, the actual manufacturing overhead for the year was $538,980, and manufacturing overhead for the year was underapplied by $24,140. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been

Answers

Answer:

$544,120

Explanation:

Calculation for what The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been

First step is to calculate the Applied manufacturing overhead

Applied manufacturing overhead = $538,980 - $24,140

Applied manufacturing overhead = $514,840

Second step is to calculate the Predetermined overhead rate using this formula

Predetermined overhead rate = Applied manufacturing overhead / Actual direct labor hours

Let plug in the formula

Predetermined overhead rate = $514,840 / 21,100

Predetermined overhead rate = $24.4

Now let calculate the Estimated total manufacturing overheads using this formula

Estimated total manufacturing overheads = Estimated direct labor hours * Predetermined overhead rate

Let plug in the formula

Estimated total manufacturing overheads= 22,300 *$24.4

Estimated total manufacturing overheads= $544,120

Therefore The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been $544,120

Your daughter is currently 10 years old. You anticipate that she will be going to college in 8 years. You would to have $136,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3% per year, how much money do you need to put into the account today to ensure that you will have $136,000 in 8 years

Answers

Answer:

$107,359.66

Explanation:

We are to calculate the present value of $136,000

The formula for calculating present value is :

The formula for calculating future value:

P = FV / (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

$136,000 / (1.03)^8 = $107,359.66

On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: Opened a business bank account with a deposit of $60,000 in exchange for common stock. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $22,300. Paid rent on office and equipment for the month, $7,000. Paid creditors on account, $1,100. Billed customers for fees earned for managing rental property, $3,600. Paid automobile expenses for month, $750, and miscellaneous expenses, $1,000. Paid office salaries, $4,000. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. Paid dividends, $5,000. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

Answers

Answer:

I used an Excel spreadsheet, see the attached file

Explanation:

 

Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 630,000 $ 408,000 $ 102,000 $ 48,000 $ 30,000 $ 42,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % Exercise 7-9 Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,200 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,200 debit.

Answers

Answer:

A. $14,820

B. Dr Bad Debt Expense $1,620

Cr Allowance for Doubtful Accounts $1,620

C. Dr Bad Debt Expense $17,020

Cr Allowance for Doubtful Accounts $17,020

Explanation:

a. Calculation to Estimate the balance of the Allowance for Doubtful Accounts

Using this formula

Balance of the Allowance for Doubtful Accounts=Account Receivable *Percentage Uncollectible

Let plug in the formula

Account Receivable* Percentage Uncollectible = Balance of the Allowance for Doubtful Accounts

Not due $408,000*1%=$4,080

1 to 30 $102,000*2%=$2,040

31 to 60 $48,000*5%=$2,400

61 to 90 $30,000*7%=$2,100

Over 90 $42,000*10%=$4,200

Balance of the Allowance for Doubtful Accounts $14,820

($4,080+$2,040+$2,400+$2,100+$4,200)

b. Preparation of the adjusting entry to record Bad Debts Expense

Dr Bad Debt Expense $1,620

($14,820-$13,200)

Cr Allowance for Doubtful Accounts $1,620

(Being to record Bad Debts Expense)

c. Preparation of the adjusting entry to record bad debts expense

Dr Bad Debt Expense $17,020

($14,820+$2,200)

Cr Allowance for Doubtful Accounts $17,020

(Being to record Bad Debts Expense)

On January 1, 2019, the balance in Kubera Co.'s Allowance for Bad Debts account was $1,150. During the year, a total of $3,655 of delinquent accounts receivable was written off as bad debts. The unadjusted balance in the Allowance for Bad Debts account at December 31, 2019, was $1,450. Required: a. What was the total amount of bad debts expense recognized during the year

Answers

Answer:

$3,955

Explanation:

Bad debts are debts owned to a business whose likelihood of collection is not guaranteed.

Debit

Particulars Amount

Debtors. $3,655

Balance c/f. $1,450

Total $5,105

Credit

Particulars. amounts

Balance b/f $1,150

Bad debts. $3,955

Total. $5,105

Therefore, the amount of bad debts recognized during the year is $3,955

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 71,000 Delivery cost $ 3,000 Installation charge $ 2,000 Estimated life 5 years Estimated units 146,000 Salvage estimate $ 3,000 During Year 1, the machine produced 42,000 units and during Year 2, it produced 44,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods:

Answers

Answer: See Explanation

Explanation:

You didn't give the methods to use but let me use 2 main methods.

First, let's use the Straight line Depreciation. This will be:

= ($71000 + $3000 + $2000 - $3000) / 5

= $73000/5

= $14600

Year 1 Depreciation = $14600

Year 2 depreciation = $14600

Secondly, let's use the double declining method of Depreciation will be:

= 1/5 × 2

= 0.2 × 2

= 0.4

= 40%

Year 1 depreciation will be:

= 76000 × 40%

= 76000 × 0.4

= $30400

Year 2 Depreciation will be:

= ($76000 - $30400) × 40%

= $45600 × 40/100

= $45600 × 0.4

= $18240

A point inside the production possibilities curve is: A) attainable and the economy is efficient. B) attainable, but the economy is inefficient. C) unattainable, but the economy is inefficient. D) unattainable and the economy is efficient. Group of answer choices

Answers

Answer:

B) attainable, but the economy is inefficient.

Explanation:

In the case when there is a point that inside in the production possibility curve so it is attainable but there is non-efficient economy

Therefore according to the given options, the option B is correct

And, the rest of the options are wrong

So the same would be relevant too

On January 1, 2020, Scottsdale Company issued its 11% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds were issued for $$3,385,058 to yield 9%. Scottsdale uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. The 12/31/23 Premium on Bond Payable balance is:

Answers

Answer:

$269,153

Explanation:

Dr Cash 3,385,058

    Cr Bonds payable 3,000,000

    Cr Premium on bonds payable 385,058

premium amortization year 1 = ($3,385,058 x 9%) - $330,000 = $304,655 - $330,000 = -$25,345

premium amortization year 2 = ($3,359,713 x 9%) - $330,000 = -$27,626

premium amortization year 3 = ($3,332,087 x 9%) - $330,000 = -$30,112

premium amortization year 4 = ($3,301,975 x 9%) - $330,000 = -$32,822

premium's balance = $269,153

The security market line (SML) is:__________
a) the line that represents the expected return-beta relationship.
b) All of the options.
c) also called the capital allocation line.
d) the line that describes the expected return-beta relationship for well-diversified portfolios only.
e) the line that is tangent to the efficient frontier of all risky assets.

Answers

Answer: a) the line that represents the expected return-beta relationship

Explanation:

The security market line simply refers to a line that is drawn on a chart and it is simply a representation of capital asset pricing model as it shows the expected return-beta relationship.

The graphical representation depicts the risk of the securities, against their expected return. Therefore, the correct option is A.

Luis has an obligation to pay a sum of $3,000 in four years from now and a sum of $5,000 in six years from now. His creditor permits him to discharge these debts by paying $X in two years from now, $1000 in three years from now, and a final payment of $2X in nine years from now. Assuming an annual effective rate of interest of 8%, find X

Answers

Answer:

The value of X is 2455.77

Explanation:

Given the data in the question;

annual effective rate of interest of 8%, = 0.08

Now, we discount all the ash flows to present value, so we get;

3000×[tex]\frac{1}{(1 + 0.08)^{4} }[/tex] + 5000×[tex]\frac{1}{(1 + 0.08)^{6} }[/tex]  = X×[tex]\frac{1}{(1 + 0.08)^{2} }[/tex] + 1000×[tex]\frac{1}{(1 + 0.08)^{3} }[/tex] + 2X×[tex]\frac{1}{(1 + 0.08)^{9} }[/tex]  

2,205.089 + 3,150.84 = 793.83 + X( [tex]\frac{1}{(1 + 0.08)^{2} }[/tex] + [tex]\frac{1}{(1 + 0.08)^{9} }[/tex] )

5355.929 - 793.83 = X( 0.8573 + 1.0004 )

4,562.099 = X( 1.8577 )

X = 4,562.099 / 1.8577

X = 2455.77

Therefore; value of X is 2455.77

use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves

the answer is D

Answers

Answer:

B. giving loans

Explanation:

Banks use a large proposition of their deposits to create loans for other customers. The federal reserve requires commercial banks to hold a small percentage of deposits as reserves. The reserve requirement is one of the monetary policy tools of the Federal Reserve.

In most cases, the reserve requirement is around 10 percent or below of the total deposits. As a fraction, 10 Percent is a tenth (1/10), which is a small proportion of the total deposits. The bigger percentage, 90 percent, is used to create loans to other customers.

Holly files married filing jointly and reports income of $300,000 ($340,000 AGI - $40,000 itemized deductions) before the deduction for qualified business income. She has no capital gains or dividends included in taxable income. Holly's engineering consulting service generates $20,000 of qualified business income. She paid no wages during the current year. What is Holly's deduction for qualified business income

Answers

Answer:

$4,000

Explanation:

The computation of the deduction for qualified business income is shown below:

In this the lower amount should be considered

20% of net income or 20% of qualified business income

20% of $300,000 or 20% of $20,000

So the lower amount is $4,000

hence, the same would be represented as a deduction

A total of $54,000 is borrowed and repaid with 48 monthly payments, with the first payment occurring one month after receipt of the $54,000. The stated interest rate is 8.50% compounded quarterly. What monthly payment is required

Answers

Answer: $1,329.40

Explanation:

First convert the annual interest rate which is compounded quarterly to an effective rate per period.

effective rate = (1 + annual rate/ no of compounding periods) ^ (number of compounding periods/ no. of periods) - 1

= (1 + 8.5%/4) ⁴ ⁺ ¹² - 1

= 0.703%

The monthly payments are constant so this is an Annuity.

Present value of Annuity = Annuity * (1 - ( 1 + r) ^ -n) / r

54,000 = Annuity * ( 1 - (1 + 0.703%)⁻⁴⁸) / 0.703%

54,000 = Annuity * 40.6205

Annuity = 54,000 / 40.62

Annuity = $1,329.40

What is currency exchange?
O A. The assessment of the value of raw materials that have been
converted into manufactured items
O B. The conversion of money from one system to another system
O C. The printing of money that is easy to carry
O D. The purchase of stock in public corporations

Answers

Answer:

O B. The conversion of money from one system to another system

Explanation:

Currency exchange is converting the currency of a country into the currency of another country. It is the conversion of the country's A currency to the country's B currency. The rate of converting the currency of one country to another is the exchange rate.

Currency exchange takes place in the foreign currency exchange market.  Demand and supply factors determine the exchange rate between currencies of two countries.

g MM Proposition II with taxes: Group of answer choices reveals how utilizing the tax shield on debt causes an increase in the value of a firm. reaches the final conclusion that the capital structure decision is irrelevant to the value of a firm. supports the argument that the cost of equity decreases as the debt-equity ratio increases.

Answers

Answer:

reveals how utilizing the tax shield on debt causes an increase in the value of a firm.

Explanation:

According to the MM Proposition II with taxes, the value of a levered firm = Vu + tD

Where :

Vu = value of unlevered firm

tD = debt tax shield

In the presence of taxes, the value of a levered company is greater than that of the same company without debt with the same operating income.

Also, the WACC of a company with debt must be lower than that of an all equity company

g Tirri Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.30 Direct labor $ 3.45 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 24,000 Sales commissions $ 1.10 Variable administrative expense $ 0.65 Fixed selling and administrative expense $ 8,400 If the selling price is $27.70 per unit, the contribution margin per unit sold is closest to: Multiple Choice $13.85 $16.95 $10.40 $6.55

Answers

Answer:

$13.85

Explanation:

Calculation for what the contribution margin per unit sold is closest to:

Selling price $27.70 per unit,

Less Direct materials ($ 7.30)

Less Direct labor ($ 3.45)

Less Variable manufacturing overhead ($ 1.35 )

Less Sales commissions ($ 1.10)

Less Variable administrative expense ($ 0.65)

Contribution margin per unit sold $13.85

Therefore the contribution margin per unit sold is closest to: $13.85

The classic supply chain approach has been based on
forecasting which of the following parts of future
inventory using statistical trending?
Transfer
Demand
olololo
Lifecycle
Safety stock

Answers

Answer:

Demand

Explanation:

The classic supply chain approach statistics refers to data regarding past suppliers or sales through the distribution channels. A business can use this information to analyze sales trends. Once the sale trends are determined, future demand for products can be estimated. The business uses historical data from its supply chain to predict future sales and demand.

Suppose the price elasticity of demand for cigarettes is -0.8 and that the government can essentially set the price of cigarettes by altering the tax rate. If the government wishes to reduce the quantity of cigarettes demanded by 15 ​percent, how much must it raise the price of​ cigarettes? The​ government, to achieve its​ goal, must raise the price of cigarettes by nothing percent. ​(Enter your response rounded to two decimal​ places.)

Answers

Answer: 18.75%

Explanation:

Price elasticity of demand shows the change in quantity demanded as a result of a change in price.

If the price elasticity is negative, it means that quantity demanded and price move in opposing directions. If prices increase, quantity demanded decreases and vice versa.

Price elasticity of demand = Change in quantity demanded / Change in price

-0.8 = - 15% / x

-0.8x = -15%

x = -15% / -0.8

= 18.75%

A "direct response" social media advertisement offers a 50% discount at your restaurant for one of two people dining
together as a couple on Valentine's Day. The discount will apply to the lower priced
meal. One meal will cost $24.77 and the other costs
$22.56. What will the total cost of the check be with the discount?
a) $24.77
b) $34.95
c) $36.05
d) $47.33

Answers

Answer:

36.05

Explanation:

$22.56/2=11.28

$11.28+24.77=$36.05

On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per share. For the previous year, Zack paid an annual dividend of $3.90 per share. Zack's gross revenues and net income was $5,000,000 and $2,500,000, respectively. The dividend yield for Zack Corporation would be:_________a) 8%.b) 0.8%.c) 39%.d) None of these choices are correct.

Answers

Answer:

8%

Explanation:

Dividend yield is a measure of business performance, used by investors which compares dividend paid by a stock to its market share.

Given the above information,

Dividend yield = $3.90/$48 × 100 = 8.13%

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