Suppose you have $1,000 to invest over a 10-year period. Explain under what circumstances you would buy penny stocks or junk bonds as an investment. In your answer, explain why an investment with greater risk, such as a penny stock, will likely have a lower market price but an uncertain rate of return.

Answers

Answer 1

Answer:

Explanation:

There is only one circumstance in which I (personal opinion) would be willing to place my money in penny stocks and that is If the money is extra money that is only an extremely small percent of my overall portfolio and I am ok loosing it completely. That is because penny stocks are stocks from new companies that basically have an idea and are just starting out. The rate of return can be massive on these stocks but they can also go bankrupt and you can loose all your money just as fast. Therefore, they are incredibly risky investments.


Related Questions

The Blue Star has sales of $387,000, costs of goods sold of $259,000, average accounts receivable of $9,800, and average accounts payable of $12,600. How long does it take for the firm's credit customers to pay for their purchases

Answers

Answer:

9.24 days

Explanation:

Calculation for How long does it take for the firm's credit customers to pay for their purchases

First step is to calculate Receivables turnover

Using this formula

Receivables turnover=Sales/Average accounts receivable

Let plug in the formula

Receivables turnover = $387,000/$9,800

Receivables turnover= 39.48979592

Last step is to calculate the Receivables period using this formula

Receivables period = Numbers of days in a year/Receivables turnover

Let plug in the formula

Receivables period = 365 days/39.48979592

Receivables period = 9.24 days

Therefore How long does it take for the firm's credit customers to pay for their purchases is 9.24 days

What are the arithmetic and geometric average returns for a stock with annual returns of:__________.
a) 4%,
b) 9%,
c) -6%,
d) 18%

Answers

Answer:

Arithmetic average return = 6.25%

Geometric average return = 5.89%

Explanation:

Annual returns of 4%,  9%,  -6% and  18%

Arithmetic average return of the stock = ∑ 4%,9%,-6%,and 18% / n

= 25%/4

= 6.25%

Geometric average return formula = x1,*x2*x3 .....^1/n  - 1

Geometric average return = 1.04*1.09*(1-0.06)*1.18^1/4 -1

Geometric average return = 1.04*1.09*0.94*1.18^1/4 - 1

Geometric average return  = 1.25789^1/4-1

Geometric average return = 1.0589 - 1

Geometric average return = 0.0589

Geometric average return = 5.89%

If Bundle of Goods A contains two pizzas and three sodas, and Bundle B contains three pizzas and three sodas, then Patrick will select Bundle B based on the principle of __________.

Answers

Answer:

utility satisfaction

Explanation:

In simple words, the principle of utility satisfaction states that each and every customer have their own preferences and choice thus their utility satisfaction constraints are different.

In the given case, if the volume of the product is same in both the bundles then the nature of the product that provides more utility to the customer will be chosen by him or her.

Match each cost with the investment type to which it relates. investment advisory fees administrative costs commissions hourly fees

Answers

Answer:

Stocks and bonds: commissions and hourly fees

Mutual funds: administrative costs and investment advisory fees

Explanation:

Stocks and bonds: commissions and hourly fees.

Mutual funds: administrative costs and investment advisory fees.

What are Mutual funds?

In order to engage in securities such as stocks, bonds, money market instruments, and other assets, mutual funds pool the funds from shareholders.

Professional money administrators run mutual funds, allocating the assets and attempting to generate capital gains or income for the fund's investors.

The portfolio of a mutual fund is set up and kept up to date in accordance with the specified investment goals in the prospectus.

Small or individual investors have access to expertly managed portfolios of stocks, bonds, and other securities through mutual funds. As a result, each shareholder shares proportionately in the fund's profits or loses.

The performance of mutual funds, which invest in a huge variety of securities, is typically measured by changes in the fund's overall market capitalization.

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Which statement best describes what a project manager controls?
the overall choice of which work becomes a project
the overall deadline when a project is due
the overall resources allocated for a project
the delegation of responsibilities in a project

Answers

Answer:

I believe it’s the delegation of resources

Explanation:only other logical choice is delegation of responsibilities but that’s up to the boss or who assigned the project in the first place

The statement that best describes what a project manager controls is the delegation of responsibilities in a project.

Who is a project manager?

A project manager refers to the person who has the responsibility of planning and executing a project.

The delegation of responsibilities in a project is the best statement that describes what is controlled by the project manager.

Therefore, D is the correct option.

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Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $9,700 will be accepted. Assume that the competitor's bid is a random variable that is uniformly distributed between $9,700 and $14,700.

Answers

Supposing we bid $12,000 and $14,000 on the piece of land, the probability that the bid will be accepted is 0.46 and 0.86 respectively.

What is a probability?

As a branch of mathematics, a probability is mostly concerned with the analysis of random phenomena, that is, it is based of the idea that the outcome of a random event cannot be determined before it occurs but it may be any one of several possible outcomes.

Given data

Highest bid in excess of $9,700 will be accepted.

Competitor's bid between $9,700 and $14,700.

Probability that your bid will be accepted:

= (12000 - 9700) / (14700 - 9700)

= 0.46

Probability that your bid will be rejected

= (14000 - 9700)/(14700 - 9700)

= 0.86

Missing words "Suppose you bid $12,000. What is the probability that your bid will be accepted and Suppose you bid $14,000. What is the probability that your bid will be accepted"

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County Medical Center received unrestricted contributions of $22,000. The hospital used the contributions to support general services. These contributions would be reported on the statement of cash flows as

Answers

Answer:

County Medical Center

These unrestricted contributions of $22,000 used to support general services would be reported on the statement of cash flows as:

cash from operating activities.

Explanation:

Unrestricted contributions received by the County Medical Center are funds or other assets given to the Center with no restriction on their use.  Unrestricted contributions are usually directed at the funding of operational expenses, as the County Medical Center demonstrated.  Therefore, they are listed under operating activities in the Statement of Cash Flows.

6. Consider an economy described by the following equations:
Y = C + I + G
Y = 5,000 G = 1,000 T = 1,000
C = 250 + 0.75(Y − T) I = 1,000 − 50 r.
a. In this economy, compute private saving, public saving, and national saving.
b. Find the equilibrium interest rate.
c. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving.
d. Find the new equilibrium interest rate.

Answers

Answer:

(a) Private saving = Y-T-C

Private saving = 5000-1000-250-0.75(5000-1000)

Private saving = 750

Public saving = T - G

Public saving = 1000-1000

Public saving = 0

National saving = S = private saving+ public saving

National saving = 750

(B)  Equilibrium interest rate = S + I

750 = 1000 - 50r

-50r = 750 - 1000

-50r = -250

50r = 250

r = 250/50

r = 5%

(c) Private saving is unchanged

Public saving = 1000 - 1250

Public saving = - 250

(d) The new equilibrium interest rate

750 (-250) = 1000-50r

500 = 1000 - 50r

- 50r = 500 - 1000

- 50r = -500

-50r = 500

r = 500/50

r = 10%

A proposed new project has projected sales of $195,000, costs of $92,000, and depreciation of $25,200. The tax rate is 25 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Operating cash flow
EBIT +Depreciation - Taxes 58,800
Top-down
Tax-shield
Bottom-up

Answers

Answer:

EBIT + Depreciation - Tax

= (195000-92000-25200) + 25200 - 19450

= $83,550

Top down OCF = EBIT - (EBIT * Tax) + Depreciation  

Top down OCF = (195000-92000-25200) - ((195000-92000-25200) * 0.25) +25200

Top down OCF = 77800 - 19450 + 25200

Top down OCF = $83,550

Tax shield OCF = (Sales - Exp) (1-tax) + (Dep * tax)  

Tax shield OCF = (195000-92000) (1-0.25) + (25200 * 0.25)  

Tax shield OCF = 77250 + 6300

Tax shield OCF = 83550

Bottom Up OCF = Net Income + Dep

Bottom Up OCF = (77800 * (1-0.25) + 25200

Bottom Up OCF = 83550

Which of the following are different types of low risk bonds discussed in the presentations? (Select all that are correct.)
Group of answer choices

High Yield Bonds

Callable, Speculative Grade, and Municipal Bonds

Corporate bonds--form of borrowing by a corporation, interest is subject to taxes.

Government bonds--issued by US Treasury, low risk, and no state or local taxes on the income.

Answers

Government and Municipal

It's important to learn about customs and other aspects of different cultures, but it is not culturally competent to do what with that information?

Question 4 options:

ask thoughtful questions about another culture


adapt your communication style to another person's culture


respect those aspects of another person's culture


apply those aspects to everyone in a culture

Question 5 (1 point)

Answers

It's important to learn about customs and other aspects of different cultures, but it is not culturally competent to apply those aspects to everyone in a culture. Thus the correct option is D.

What is Culture?

Culture represents the customs, beliefs, traditions, rituals, moral values, and religions of an individual or community bought from their ancestors aimed to preserve their existence for future generations.

When an individual learns about another culture and gains information is important with the objective of knowledge sharing but it is not culturally competent to apply those aspects to everyone in culture as everyone is free to choose their cultural values.

This will be a sounding force by applying the new cultural elements to everyone.

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For the period from 2019 to​ 2020, a company reports the​ following: Percentage change in sales 30​% increase Percentage change in cost of goods sold 20​% increase Percentage change in gross profit 25​% increase If sales are $5,000,000 in​ 2019, what are sales in​ 2020?

Answers

Answer:

If sales are $5,000,000 in​ 2019, the sales in 2020 will be

$6,500,000

Explanation:

a) Data and Calculations:

                                                 2019     2020      Change

Percentage change in sales    100%     130%     30​% increase

Percentage change in cost of

  goods sold                             100%    120%     20​% increase

Percentage change in

 gross profit                             100%    125%     25​% increase

Sales are in​ 2019 =       $5,000,000   $6,500,000 ($5 million * 130/100)

Alternatively, the 30% increase can be computed, to get $1,500,000 ($5,000,000 * 30%).  This change in sales is then added to the 2019 sales figure to get $6,500,000, which is the sales in 2020.

You have typically set work standards that were aimed: At the same level as other employees. At achieving the highest quality possible. Above average as compared to other employees. At completing the largest quantity of work.

Answers

Answer:

You have typically set work standards that were aimed:

At achieving the highest quality possible.

Explanation:

A good work standard, which is usually a written description of how a process should be done, guides consistent execution of a work process.  Current "best practice" is documented in the work standard, and this ensures complete implementation throughout the company.  A work standard provides the baseline, below which work should never be performed or accepted.  This implies that every good work standard aims at achieving the highest quality.

A machine with a cost of $162,000, current year depreciation expense of $25,000 and accumulated depreciation of $101,000 is sold for $52,800 cash. The total amount related to this machine that should be reported in the operating section of the statement of cash flows under the indirect method is:___________.
a. 25000
b. 5280
c. 77800
d. 16200
e. 33200

Answers

Answer:

Amount reported in operating activities = $33,200

Explanation:

Given:

Cost of machine = $162,000

Accumulated depreciation = $101,000

Sales price = $52,800

Current year depreciation = $25,000

Computation:

Particular                                                Amount

Cost of machine                            $162,000

Less: Accumulated depreciation         $101,000

Book value of machine                 $61,000  

Loss on sale[$61,000-$52,800 ]          $8200  

Amount reported in operating activities = Current year depreciation + Loss on sale

Amount reported in operating activities = $25,000 + $8200

Amount reported in operating activities = $33,200

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Answers

Answer:

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Answer:

Idkidkidkidkidkidkidk

Explanation:

Why would you want to limit your borrowing when making economic decisions ?

Answers

Answer:

so they can end up spending less on interest payments and credit card fees.

Explanation:

Hey guys! please help me with this questions.

1. What is Business? Explain the objective of business.

2. Explain social responsibility of business

3. Explain various form of business organizations​

Answers

Answer:

1.Business objectives are the specific and measurable results companies hope to maintain as their organization grows. Entrepreneurs and business leaders must track performance in every part of their business to make sure they're moving in the right direction

Explanation:

Do you think we should have to pay more or less taxes?


Who pays more taxes, the wealthy, middle-class, or those in poverty? Do they pay different types of taxes, or more taxes than others?



What are “Tax Loopholes” & who tends to benefit from them?

Answers

Paying tax is a relative thing .If government is utlizing the collected tax in proper ways and investing it in development arena,its good to pay the taxes because it ultimately will benifit us but paying more tax for government with weak development strategies and slow implementation that too with corruption its worthless of paying tax. 2. Middle class pays the hightest tax but the wealthy one pays low taxes because they wonderfully uses the tax loopholes inorder to pay less tax..Acutally paying less tax makes wealthy more wealthier but middle class who pay more tax cannot jump from middle class to high class because most of their income is deducted through tax

The metric that measures how well an enterprise is using customers to create short-term and long-term value is:

Answers

Answer:

return on customer

Explanation:

Return on Customer known as ROC can be regarded as the metric designed by the company, it entails the measure of generated profit from the customer during a particular period of time as well as the value changes of customers both positive and negative changes during the particular period. However the customer must be a trusted one for firm to carry out this. It should be noted that The metric that measures how well an enterprise is using customers to create short-term and long-term value is return on customer.

Maytag Company earns $4.80 per share. Today the stock is trading at $59.25. The company pays an annual dividend of $1.40. a. Calculate the price-earnings ratio

Answers

Answer:

A. Price-earnings ratio= 12.34

B. Yield on the stock = 2.36%

Explanation:

A. Calculation for the price-earnings ratio using this formula

Price-earnings ratio=Market Price Per Share / Earnings Per share

Let plug in the formula

Price-earnings ratio=59.25 / 4.80

Price-earnings ratio= 12.34

B. Calculation for the yield on the stock using this formula

Yield on the stock=Annual dividends per share / market price per share

Let plug in the formula

Yield on the stock=1.40 / 59.25

Yield on the stock = 2.36%

Therefore the Price-earnings ratio is 12.34 while the Yield on the stock is 2.36%

List four issues you may have as a parent deciding succession plans for a family owned business of which you are in control. Include an idea on how you would address or attempt to resolve each issues.

Answers

Answer:

1. family fights, 2. kids not wanting to work at the family business, 3. lack of training, 4. pressure to hire family members, 1. hire other people that arent in the family, 2. convinve them to work there, 3. hire well trained people to train family, 4 hire them and see is they are good for the job or not and have themmstart at a easy position

Explanation:

The Motor Works is considering an expansion project with estimated fixed costs of $127,000, depreciation of $16,900, variable costs per unit of $41.08, and an estimated sales price of $79.90 per unit. How many units must the firm sell to break even on a cash basis

Answers

Answer:

Break-even point in units= 3,271

Explanation:

Giving the following information:

estimated fixed costs of $127,000

variable costs per unit of $41.08

Selling price of $79.90 per unit.

Because it is requiring the cash break-even point, we will not take into account the depreciation expense.

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 127,000 / (79.9 - 41.08)

Break-even point in units= 3,271

A positive consequence of organizational distress may take the form of: a. functional turnover. b. absenteeism. c. employee work stoppage. d. performance increments.

Answers

Answer:

a. functional turnover

Explanation:

Organizational distress is arise when the anxiety level of the management is too high to adapt for modify

Now the positive result for the organziational distress would take a form of functional turnover as the turnover of the company depend upon the different kinds of functions

Hence, the correct option is a.

A measure of the outcome of a decision such as profit, cost, or time is known as a _____. a. forecasting index b. payoff c. branch d. regret

Answers

Answer:

b. payoff

Explanation:

In the context of business, this measurement is known as a payoff. In other words, it refers to whatever is obtained as a final result from a specific outcome generated after making specific decisions. Every business decisions revolve around what the potential payoffs will be in order to decide whether or not they will be worth making and if the benefits outweigh the negative aspects.

Susan Nicholson sells home furnishings. She is paid an 8% commission on the first
$2,000 worth of sales, 10% on the next $2,500, and 15% on all sales over $4,500. What
is her commission on $4,910 worth of sales?

Answers

Let A = Sales Amount

Basic income (B) = 1600

Rate (R) = 4%

Commission (C) = 4*A/100

Total monthly income (T) = 2487.84

T = B + C

T = B + 4A/100

2487.84 = 1600 + 4A/100

2487.84 - 1600 = 4A/100

887.84 = 4A/100

(887.84)/4 = A/100

A= (221.96)*100

A= 22196

So, the sales amount was $22.196, which is the answer.

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Discuss the tradeoffs between fiber-optic and satellite communication in terms of costs, signal capacity, signaling method, interference, likelihood of failure and repair issues, multipoint capability, reconfiguration capability and noise.

Answers

Answer:

Explanation:

I will split this answer into two options...

Fiber Optic communications work by sending data through beams of light through a series of fiber cables. This allows for data transfer at incredibly high speeds and with an almost non-existent probability of data loss. Since cables need to be connected from one end-point to another this form of communication becomes more expensive and the capability of reconfiguration becomes incredibly difficult. The likelihood of failure is also very low due to the nature of the technology.

Satellite communication sends data wirelessly by beaming the data to satellites and then back down to the destination. This allows for data to be transferred worldwide but runs into the risk of interference, data loss, signal loss etc. Costs are much cheaper than Fiber Optics due to the lack of wiring. Multipoint capabilities are high since endpoints can be placed anywhere with a clear line of sight to the sky, which also means that reconfiguration capabilities are high as well.

a single person making $240 weekly and claiming 1 allowance would have $13 withheld for income taxes.A married person making $240 weekly and claiming 1 allowance would have $3 withheld for income taxes.Do you think this is fair?Why or Why not?

Answers

No, it is not fair. If the money they earn is the same, the money withheld should be the same and their status should not affect it.

Oriole Company issues $270,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the sale of these bonds on June 1, 2022.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
Cash
Bonds Payable 270,000
Premium on Bonds Payable

Answers

Answer:

Explanation:

Date      Account titles and Explanation        Debit         Credit

Jun 01    Cash (270,000*102%)                     $275,400

                    Bonds payable                                              $270,000

                    Premium on Bonds Payable                          $5,400

          (to record the sale of these bonds)

Money Bank has $500 million dollars in deposits and has 12 percent reserve ratio, how much can Money Bank lend

Answers

Answer:

Money Bank can lend up to $4,167 million.

Explanation:

a) Data and Calculations:

Total deposits = $500 million

Reserve ratio = 12%

Money created by Money Bank = $500/12% = $4,166,666,667

b) The total amount of money which Money Bank can create and lend is dependent on its customers' deposits and the reserve ratio.  This amount can be calculated by dividing the total deposits by the reserve ratio.  This implies that the less the reserve ratio, the more money Money Bank can create and lend out to customers.

This case discusses the case of India and the potential impact of the new government's reforms on the future of India. The case discusses some of the factors that have prevented India from growing faster while also emphasizing the need for reforms. Answer the following questions:

1. What are some of the factors that show that India has lots of promise to shine among the emerging market economies?

2. What are some of the factors that are preventing India from achieving its full potential?

3. Why was China able to achieve such economic growth more easily than India?

4. What are some of the tough reforms that India has to go through in order to succeed?

Answers

Some of the factors that show that India has lots of promise to shine among the emerging market economies are;

India's substantial manufacturing growth, business-friendly reforms, infrastructure development, and political stability make the country the most notable developing market for investors to invest in.

What are some of the factors that are preventing India from achieving its full potential?

India would not be able to grow its economy or develop sustainably until gender and economic disparity are reduced. According to a recent United Nations Development Fund assessment, India trails behind several of its South Asian neighbors on the human development index (HDI), mostly due to inequities.

Why was China able to achieve such economic growth more easily than India?

While economic reforms may account for some of the differences, China outpaced India because:

(1) the economy was privatized sooner;

(2) prices were released sooner;

(3) the labor market underwent much deeper reforms; and

(4) the economy was opened up to international trade and foreign direct investment (FDI) sooner.

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