Answer:
False
Explanation:
It is FALSE that If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consistent with the weak form of EMH.
Weak Form of Efficiency Market Hypothesis states that individuals cannot use past knowledge, facts, or occurrence about stock to determine its future price.
In other words, past data or evidence has no connection with existing market prices.
Hence, if you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, that shows the existence of pattern or past information about the stock rising or falling prices determine future occurrence. This situation contradicts the Weak form of EMH
Taylor Company issues bonds with a par value of $800,000 on their issue date at a market price of 91.9. The bonds mature in 5 years and pay 6% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%. Compute the total interest expense for Taylor Company over the life of the bonds.
Answer:
$393,198
Explanation:
Bond Repayments (Coupons) include a capital payment and a finance charge (interest). These can only be separated in by constructing an amortization schedule.
Set the financial calculator as :
PV = - $919,000
FV = $800,000
PMT = ($800,000 x 6%) ÷ 2 = $24,000
P/YR = 2
N = 5 x 2 = 10
I/YR = 8 %
Thus
the total interest expense for Taylor Company over the life of the bonds is $393,198
1) If you believe in the reversal effect, you should buy stocks that performed well last period. (10points) a. True. b. False
Answer:
False.
Explanation:
The reversal effect is a theory in the field of business and investment that establishes that markets move in an oscillating way, that is, with constant ups and downs, which occur in reverse: if a share rises in a day set of days, the most logical and expected thing is that it comes down proportionally.
Thus, according to this theory, the performance of a market instrument is determined by its ability to maintain value at times of decline.
Abburi Company's manufacturing overhead is 40% of its total conversion costs. If direct labor is $105,000 and if direct materials are $21,000, the manufacturing overhead is:
If a person owes several people money, that person can give each of the creditors part of the total owed. If this arrangement is agreed to by all creditors, it is called
Answer:
a composition of creditors
Explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.
This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.
Hence, lenders look at the credit score of a loan applicant so as to ensure that he or she is financially responsible and would be able to repay the loan at the agreed upon date.
A composition of creditors can be defined as a type of arrangement in which an individual owing (debtor) several people money gives each of the creditors part of the total amount of money being owed. Also, for this arrangement to be valid, it must be agreed to by all creditors.
In a nation with excessive population growth and unskilled labor, the production possibilities curve tends to: Group of answer choices Shift to an increased level Shift to the right Increase and then decrease Remain unchanged Reach an unattainable point
Answer:
This question is incomplete, the options are wrong. The correct options are the following:
a) Reach the unattainable point.
b) Increase and then decrease.
c) Remain unchanged.
d) Shift to a point on the graph which reflects growth.
e) Increase at a decreasing rate.
And the correct answer is the option D: Shift to a point on the graph which reflects growth.
Explanation:
To begin with, the name of "Production Possibilities Curve" in the field of microeconomics refers to the graphic that shows the maximum quantity of a combination of goods and services that a certain economy can produce in a determine period of time given a state of technology. The line that represents the frontier of the possibilities in the graphic can be reach if some situations happens like for example the population grow constantly.
The production potential curves show the highest amount of a variety of goods and commodities that a particular economy can create in a resolute duration given a condition of technology.
If the population rises regularly then the graph can reach its ultimate frontier.
The correct answer is:
Option D: Shift to a point on the graph which reflects growth.
This can be explained as:
There is a rise in the inhabitants as well as the unskilled workers this will redirect the production angle towards the end where the transition is reflected.Due to expanded population production from experienced and trained labors can raise the production pace.Therefore, the angle will shift towards the point reflecting the change.
To learn more about the Production Possibilities Curve follow the link:
https://brainly.com/question/5084989
Avalon Industries buys equipment for $64,000, expects to use it for four years, and then sell it for $6,400. Using the straight-line method, the company should report annual depreciation for the equipment of:
Answer: $14400
Explanation:
The annual depreciation will be calculated as:
= (Cost-Salvage value)/Useful Life
where,
Cost = $64000
Salvage value = $6400
Useful life = 4
= (Cost-Salvage value)/Useful Life.
= ($64000 - $6400)/4
= $57600/4
= $14400
The annual depreciation is $14400
The wages paid to thoose who devote theirtime to supervision or to work of a general nature in the manufacturing process are included in the indirect cost of the factory operation true
or false
Answer:
sa
Explanation:
10 POINTS!! FINANCE
What do statistics show about most Americans’ financial management?
Statistics show that 46% of Americans couldn’t come up with at least $400 in an emergency and 60% will face an emergency in less than 12 months.
2. Interest Earned. Lisa is depositing $2,500 in a six-month CD that pays 4.25% interest. How much interest will she accrue if she holds the CD until maturity
Answer: $53.125
Explanation:
From the question, we are informed that Lisa is depositing $2,500 in a six-month CD that pays 4.25% interest. The amount of interest that she will accrue if she holds the CD until maturity will be calculated thus:
Interest = Principal × Rate × Time
= $2500 × 4.25% × 6months
= $2500 × 0.0425 × 6/12
= $53.125
Therefore, the amount of interest that she will accrue if she holds the CD until maturity is $53.125.
Explain where each of the following items would appear on a multiple-step income statement.
a. Gain on disposal of plant assets
b. Cost of goods sold
c. Depreciation expense
d. Sales returns and allowances
Answer:
a. Gain on disposal of plant assets will appear under Other Revenues and Gains.
b. Cost of goods sold will still appear under Cost of Goods Sold.
c. Depreciation expense will appear under Operating Expense.
d. Sales returns and allowances will appear under Sales Revenue.
Explanation:
A multiple-step income statement is an income statement in which the net income reported on the bottom line is calculated using multiple subtractions.
Each of the following items would appear on a multiple-step income statement as explained below.
a. Gain on disposal of plant assets
This will appear under Other Revenues and Gains.
Other Revenues and Gains are revenues from auxiliary operations and gains unrelated to the company's operations, which are reported in the non-operating activities section of the income statement. The following are some of them: Interest from receivable, marketable securities, Gains on Disposal of Plant Assets, etc.
b. Cost of goods sold
This will still appear under Cost of Goods Sold.
Cost of Goods Sold are the direct costs of manufacturing the commodities that a business sells. This figure covers the direct cost of the materials and labor that went into making the good. It does not include indirect costs like distribution and sales force expenditures.
c. Depreciation expense
This will appear under Operating Expense.
Operating Expense is a cost that a company incurs as part of its routine operations. Examples of this include rent, marketing, payroll, insurance, monies allocated for research and development, depreciation expense, and among others.
d. Sales returns and allowances
These will appear under Sales Revenue.
This is the amount of money a corporation makes through selling things or providing services minus sales returns allowances and sales discounts.
Brief Exercise 18-5 a1-a2 Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 19,960 $46,020 August 35,488 53,232 September 39,924 60,995 October 24,398 48,965 November 44,360 82,620 December 42,142 68,758 (a1) Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit
Answer:
A.$1.50 per units
B. $16,080
Explanation:
Computation for the variable cost per unit using the high-low method.
Using this formula
Variable cost per unit= High activity cost -Low Activity cost /High activity cost -Low Activity cost
Let plug in the formula
Variable cost per unit=(82,620-$46,020)/(44,360-19,960)
Variable cost per unit=$36,600/$24,400
Variable cost per unit= $1.5 per units
Therefore the variable cost per unit using the high-low method is $1.50 per units
B. Computation for the fixed cost element unit using the high-low method.
Fixed cost element=82,620-(1.50*44,360)
Fixed cost element=82,620-66,540
Fixed cost element=$16,080
Therefore the fixed cost element unit using the high-low method is $16,080
If markets are in equilibrium, which of the following conditions will exist? a. Each stock's expected return should equal its realized return as seen by the marginal investor. b. Each stock's expected return should equal its required return as seen by the marginal investor. c. All stocks should have the same expected return as seen by the marginal investor. d. The expected and required returns on stocks and bonds should be equal. e. All stocks should have the same realized return during the coming year.
Answer:
a
Explanation:
Equilibrium is a market exists when quantity demanded equals the quantity supplied. At equilibrium, demand equals supply. Above equilibrium there is a surplus and below equilibrium there is scarcity.
When there is equilibrium in the stock market, each stock's expected return should equal its realized return as seen by the marginal investor
If there is a surplus in the stock market, realized return would be greater than expected return
If there is a scarcity in the stock market, expected return would be greater than realized return
Terps Company reports the following amounts: Book Value Fair Value Assets $ 400,000 $ 500,000 Liabilities 45,000 45,000 Net income 25,000 How much goodwill would be recorded if another company purchases Terps Company, assuming its liabilities, for $635,000
Answer:
$180,000
Explanation:
Goodwill = Purchase Price - Net Assets Taken over at Fair Value
where,
Purchase Price = $635,000
Net Assets Taken over at Fair Value = $ 500,000 - $45,000 = $455,000
therefore,
Goodwill = $635,000 - $455,000 = $180,000
The current year financial statements of Your Health Corporation reported sales of $159,773 million and accounts receivable of $10,948 million. If sales are projected to increase 4% next year, what is the projected accounts receivable balance for the following year
Answer:
$11,382.23
Explanation:
The computation of the projected account receivable balance is shown below;
Ratio of account receivable to sales is
= $10,948 ÷ $159,773
= 6.85%
Since the sales increased by 4% so the increased sales is
= $159,773 × 1.04
= $166,163.92
Now the account receivable is
= $166,163.92 × 6.85%
= $11,382.23
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $21,600 for March and $70,700 for April. What are the budgeted cash receipts from sales on account for April
Answer:
Total cash collection April= $33,875
Explanation:
Giving the following information:
Collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.
Sales on account:
Marc=$21,600
April= $70,700
Cash collection April:
Sales in account from March= (21,600*0.75)= 16,200
Sales in account from April= (70,700*0.25)= 17,675
Total cash collection April= $33,875
You are planning to make monthly deposits of $500 into a retirement account that pays 6 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 40 years
Answer:
$995,745
Explanation:
PV = $0
PMT = $500
I/YR = 6
P/YR = 12
N = 40 x 12 = 480
your retirement account be in 40 years will be $995,745
Compute each of the following.
1. The number of equivalent units for materials for the month.
2. The number of equivalent units for conversion for the month.
3. The variable cost per equivalent unit of materials for the month.
4. The variable cost per equivalent unit for conversion for the month.
5. The total variable cost of goods transferred out.
6. The total variable cost of ending work in process inventory.
Please explain your work in detail and provide in-text citations. At least 5 references are required
among which one should be the textbook as source of the data. Include the initial situation and
the initial assumptions in your answer.
*Please refer to the Grading Criteria for Professional Assignments in the University Policies
for specific guidelines and expectations.
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What do you think happens to the price of an object as it goes through a large number of intermediaries?
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2009. The inventory as reported at the end of 2008 using LIFO would have been $60,000 higher using FIFO. Retained earnings had been reported at the end of 2008 as $780,000 (reflecting the LIFO method). The tax rate is 40%.Required:1. Calculate the balance in retained earnings at the time of the change (beginning of 2009) as it would have been reported if FIFO had been used in prior years.2. Prepare the journal entry at the beginning of 2009 to record the change in principle.
Answer:
A. $816,000
B. Dr Inventory $60,000
Cr Retained earning $36,000
Cr Tax payable $24,000
Explanation:
A. Calculation to determine the balance in retained earnings at the time of the change
Using this formula
Retained earnings = Beginning retained earning balance + Adjusted net income
Let plug in the formula
Retained earnings=$780,000+ $60,000 × (1 - 40%)
Retained earnings=$780,000+($60,000×60%)
Retained earnings=$780,00+ $36,000
Retained earnings= $816,000
Therefore the balance in retained earnings at the time of the change is $816,000
2. Preparation of the journal entry at the beginning of 2009 to record the change in principle.
Dr Inventory $60,000
Cr Retained earning $36,000
[$60,000 × (1 - 40%)]
Cr Tax payable $24,000
($60,000-$36,000)
(Being to record the change in principle)
A large scale pharmaceutical manufacturing company estimates, based on a shipping fee of $1000 per order, that they can optimally balance inventory holding costs and shipping costs for one of their frequently used chemicals if they receive shipments of this chemical at an average rate of 4.5 times per year. The annual demand is 6500 tons. Suppose that they wish to instead receive shipments every month in order to reduce the working capital requirements of holding inventory.
(a) What shipping fee should they negotiate with the supplier?
(b) Based on this new shipping fee, what would be the reduction in annual holding cost as compared to their prior situation? Assume that they operate optimally.
Answer:
a. The shipping fee that they should negotiate with the supplier is:
= $375 per shipment
b. Based on this new shipping fee, the reduction in annual holding cost will be 37.5%
Explanation:
a) Data and Calculations:
Shipping fee per order = $1,000
Average shipments received per year = 4.5 times
Total shipping fee per year = $4,500 (4.5 * $1,000)
Annual demand = 6,500 tons
If shipment is changed to 12 times per year, the shipping fee that they should negotiate with the supplier = $4,500/12 = $375 per shipment
Holding cost will reduce by 37.5% (4.5/12 * 100)
4 types of market efficiency measures.
Answer:
Information arbitrage efficiency. ...
Fundamental valuation efficiency. ...
Full insurance efficiency. ...
Functional/Operational efficiency. ...
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The balance in retained earnings at December 31, 2020 was $1440000 and at December 31, 2021 was $1168000. Net income for 2021 was $1008000. A stock dividend was declared and distributed which increased common stock $499000 and paid-in capital $99000. A cash dividend was declared and paid.
The amount of the cash dividend was:___________
a) $381000.
b) $781000.
c) $682000.
d) $1280000.
Answer:
C. $682,000
Explanation:
Given the above information, the computation of cash dividend is seen below;
Beginning retained earnings (2020) + net income - Stock dividend - Cash dividend = Retained earnings
$1,440,000 + $1,008,000 - ($499,000 + $99,000) - Cash dividend = $1,168,000
$2,448,000 - $598,000 - Cash dividend = $1,168,000
Cash dividend = $2,448,000 - $598,000 - $1,168,000
Cash dividend = $682,000
Administrative Management Group of answer choices emphasizes perspective of senior managers and that management, as a profession, can be taught. applied scientific methods to analyze work and determine how best to complete production tasks in an efficient manner in order to improve production efficiency. structured, formal network of relationships among specialized positions; rules and regulations to standardize behavior and; authority resides in positions not individuals; therefore organizations will realize efficiency and success by following established unbiased rules. build internal procedures and processes into operations to improve coordination efforts. was the first approach to emphasize informal work relationships and worker satisfaction.
Answer:
The correct answer is the first option: Emphasizes perspective of senior managers and that management, as a profession, can be taught.
Explanation:
To begin with, the term known as "Administrative Management" refers to the discipline whose main purpose is to focus in the efficient and effective organization of people, information and procedures inside the entity that will all lead to the completion of the tasks that are needed to be done in order to achieve the termination of the product or service that organization produces. This particular approach seeks for the employers to achieve the field in where the understand all the contents necessary to analyze what is happening around the organization and be able to work with that as good as possible.
When suppliers collaborate with the firm overall performance has been known to improve up to _________
Hi, you've asked an incomplete question. Answered from a general business perspective.
Explanation:
Note, a firm may measure its overall performance using some of the metrics below:
amount of sales in dollarsthe total cost of production,production capacity, etc.Only when the firm's suppliers are reliable, affordable, and efficient, would the firm be able to meet their product demand.
The objectives of competition policy
Answer:
rticle 1] This Act, by prohibiting private monopolization, unreasonable restraint of trade and unfair trade practices, by preventing excessive concentration of economic power and by eliminating unreasonable restraint on production, sale, price, technology and the like, and all other unjust restriction of business
Suzy works for a company that markets timeshare condos on beach resorts in Mexico. Her job is to phone consumers and invite them to a free weekend at one of her employer's beach resorts. The only catch is that visitors are obliged to take a tour and listen to a presentation about investing in a timeshare. Which orientation is Suzy's company exhibiting?
Answer:
Sales orientation
Explanation:
Sales Orientation is a business approach of making profits by focusing on persuasion of people to buy the products instead of understanding the customer needs
The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts.
a. True
b. False
Answer:
a. True
Explanation:
In the case when there is a delivery of an asset so it would be very rare that it should be made in the forward contract as the delivery of an assets should be made in the future contract. As the forward contract settles at the time when the agreement is closed while the future contract deals with the terms and conditions related to the trading
So the given statement is true
You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 percent coupon bonds outstanding, $1,000 par value, 29 years to maturity, selling for 107 percent of par; the bonds make semiannual payments. Common stock: 470,000 shares outstanding, selling for $65 per share; the beta is 1.16. Preferred stock: 20,500 shares of 4.1 percent preferred stock outstanding, currently selling for $86 per share. The par value is $100 per share. Market: 7 percent market risk premium and 5.2 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
10.18%
Explanation:
The computation of the WACC is shown below:
But before that following calculation is to be done
The value of debt is
= 14000 × $1,000 × 107%
= $14,980,000
The value of equity is
= 470,000 × $65
= $30,550,000
The value of preferred stock is
= 20,500 × $86
= $1,763,000
Now
value of total capital is
= $14,980,000 + $30,550,000 + $1,763,000
= $47,293,000
Now we find the cost of debt using excel function i.e.
= RATE(nper,pmt,pv,fv)) × 2
= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2
= 5.80%
Now
Cost of common stock is
= 5.2% + 1.16 × 7%
= 13.32%
cost of preferred stock is
= (100 × 4.1%) ÷ 86
= 4.77%
Now finally
WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock
= ($14,980,000 ÷ $47,293,000) × 5.80% × (1 - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%
= 10.18%
Cheryl is single, has one child (age six), and files as head of household during 2020. Her salary for the year is $19,500. She qualifies for an earned income credit of the following amount. a.$3,584. b.$3,557. c.$3,530. d.$0.
Answer: $3,557
Explanation:
Maximum amount of credit for 2020 is $3,584.
The income credit is calculated by:
= Maximum amount - (Earnings for the year - Minimum phase out range for single person with one child) * phase out percentage.
= 3,584 - (19,500 - 19,330) * 15.98%
= $3,557
Sun Co. was constructing fixed assets that qualified for interest capitalization. Sun had the following outstanding debt issuances during the entire year of construction: $6,000,000 face value, 8% interest $8,000,000 face value, 9% interest None of the borrowings were specified for the construction of the qualified fixed asset. Average expenditures for the year were $1,000,000. What interest rate should Sun use to calculate capitalized interest on the construction
Answer:
the interest rate that should be determined the capitalized interest is 8.57%
Explanation:
The computation of the interest rate that should be determined the capitalized interest is shown below;
= $6,000,000 ÷ ($6,000,000 + $8,000,000) × 0.08 + $8,000,000 ÷ ($6,000,000 + $8,000,000) × 0.09
= 0.0857
= 8.57%
Hence, the interest rate that should be determined the capitalized interest is 8.57%
The same would be considered