Business, 03.05.2021 06:20 jameskatzfeystu70

Jason Heimberg’s grandmother died and left him $30,000. Jason, age 20 and single, needed $5,000 of the inheritance to finish his last year at Cosumnes River College. He had $25,000 left to invest. Jason investigated several stocks that he felt were likely to grow rapidly. Most were high-tech stocks in industries such as gene splicing and robotics. Jason’s stockbroker encouraged him to diversify his investments by buying stock in two mutual funds. One was a fund that specializes in smaller-growth companies. Another specialized in bonds. A broker Jason met at a party suggested that he really need not use a broker at all. Her suggestion was to keep some funds in the bank for his use in an emergency. Other funds could be invested in several different mutual funds that were managed by one firm. She called them no-load mutual funds and explained that they could be bought for no brokerage fee. She said the funds have an NL notation in the various mutual fund quotations, as found in The Wall Street Journal
A financial adviser has suggested that Jason buy insurance first, even though he is not married. The idea was to buy a policy that would invest money for Jason at what looked like a reasonable return. Any excess funds would be placed in a bank (for emergencies) and in mutual funds that the adviser would recommended.

What are the criteria Jason should use in evaluating investment alternatives?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 08:40

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

Answers: 2

Answer

Business, 22.06.2019 11:00

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Answers: 1

Answer

Business, 22.06.2019 12:40

Alarge tank is filled to capacity with 500 gallons of pure water. brine containing 2 pounds of salt per gallon is pumped into the tank at a rate of 5 gal/min. the well-mixed solution is pumped out at the same rate. find the number a(t) of pounds of salt in the tank at time t.

Answers: 3

Answer

Business, 22.06.2019 17:40

Within the relevant range, if there is a change in the level of the cost driver, then a. total fixed costs will remain the same and total variable costs will change b. total fixed costs will change and total variable costs will remain the same c. total fixed costs and total variable costs will change d. total fixed costs and total variable costs will remain the same

Answers: 3

Answer

You know the right answer?

Jason Heimberg’s grandmother died and left him $30,000. Jason, age 20 and single, needed $5,000 of t...

Questions