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1 year ago

How do stocks and bonds differ?

Business

1 answer:

Afina-wow [57]1 year ago

6 0

Answer:

D. Stocks are good for income while bonds are good for long-term growth.

Explanation:

A Stock is the smallest unit of a corporation. A stockholder is one of the owners of a corporation. Should the corporation makes profits, stockholders are entitled to dividends. Stocks are traded in the exchange markets. When the market or the corporation is doing well, stock price increases representing a capital gain to the shareholders.

Bonds are debts instruments that governments and corporates use to raise capital. They present long term investment opportunities to investors. Bonds offer regular and fixed interest payments to investors until maturity.

Stocks are riskier than bonds. Stock prices experience volatility as they trade every day. Their prices are likely to rise when the markets are favorable, which means profits to investors. Bonds are less risky and offer stable incomes for the long term.

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1 year ago

The floating rate feature on preferred stock allows the shareholders

KIM [24]

Answer:

d) to receive a higher or lower dividend yield depending on current competitive market conditions

Explanation:

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1 year ago

Mr. Crane is the manager of a video production company. To maximize efficiency, he assigns associates to departments (e.g. film

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Answer:

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Explanation:

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1 year ago

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2 years ago

Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on dir

oee [108]

Answer:

Estimated direct labor hours= 180,000

Explanation:

Giving the following information:

Overhead for the year was estimated to be $900,000.

Smith has applied overhead of $73,000

It applies overhead based on direct labor hours and those equaled 14,600 in November.

We have to reverse engineer the allocation method for manufacturing overhead.

First, we need to calculate the estimated overhead rate:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

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$5= Estimated manufacturing overhead rate

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Now, we can determine the estimated direct labor hours:

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5= 900,000/ total amount of allocation base

5*X= 900,000

total amount of allocation base= 180,000

Estimated direct labor hours= 180,000

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2 years ago

Read 2 more answers