When you buy a ____ , you are loaning money to an organization. AStock BBond CMutual fund DIndex fund

Answers

Answer 1

Answer: The answer is B.Bond.
When you buy bond, you are loaning money to an organization. Bond is a loan investment, in where the investor owes money to the entity usually in the government or corporations.

Answer 2

Answer:

Option (B) is correct. When a person buys a bond, then that person is loaning the money to an organization.

Further Explanation:

Bond: Bond is a financial instrument that is used for raising the funds from the outside of the entity. The bond is a loan agreement between the issuer and the bondholder where the issuer borrows the funds from the bondholder. The issuer has to pay the principal and the interest on the bond to the bondholder. Bond has a maturity date on which the issuer has to pay the principal (borrowed funds). Generally, the issuer pays the interest on the bond during the tenure of the bond.

Therefore, when a person buys a bond, that person is loaning the money to an organization.

Stock: This is an incorrect option.

Stock signifies the ownership in the company. It is not a loan.

Bond: This is the correct option.

Bond is a loan provided by the bondholder to the issuer of the bond.

Mutual fund: This is an incorrect option.

A mutual fund is an investment in various companies in a small fraction. It is a combination of debt and equity.

Index fund: This is an incorrect option.

The index fund is a type of mutual fund so it cannot be considered as a loan.

Learn more:

1. Learn more about the ideal type of loan for students

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2. Learn more about the mortgage payment

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3. Learn more about the due amount of bond

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Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Bonds & Debentures

Keywords: Bond, payable, loan, principal, interest, interest rate, bond, loaning, money, organization, stock, bond, mutual fund, index fund, borrower, issuer, bondholder.

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A corn farm, a coal mine, and a fishing company are all part of the _________ industry.

Answers

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Shares of ABBO stock are currently selling for $14.43 a share. The last annual dividend paid was $1.61 a share, and dividends increase at a constant rate. If the market rate of return is 14 percent, what is the dividend growth rate

Answers

Answer:

The dividend growth rate is 3%

Explanation:

Given that:

Dividend : $1.61 (D)
Price: $14.43 (P)
Market rate of return: 14% = 0.14 (r)

As we know that, the formula to find the price of a stock is:

P = D / (r - g)

In this question, we have:

14.43 = 1.61 / (0.14 -g)

<=> 0.14 - g = 1.61 / 14.43

<=> g = 0.14 - 0.11

<=> g = 0.03 = 3%

So the dividend growth rate is 3%

Answer:

Growth rate = 2.56%

Explanation:

Using the divided growth model

P = D× (1+g)/(ke-g)

P- price of stock, g- annual growth rate, Do- last dividend paid, Ke- market return

Substituting, we have

14.43 = 1.61(1+g)/(0.14-g)

cross multiplying

=14.43× (0.14-g) = 1.61 + 1.61g

2.0202- 14.43g = 1.61 + 1.61g

2.0202 -1.61 = 1.61g + 14.43g

0.4102 =16.04g

g = 0.025573566 × 100

Growth rate = 2.56%

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Answers

Answer:

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Explanation:

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Answers

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Explanation:

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Answers

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Answers

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