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2 years ago

Current market prices reflect all information contained in past price movements. this statement is consistent with: ______

1 answer:

6 0

Current market prices reflect all information contained in past price movements. this statement is consistent with weak form efficiency

Market efficiency is the degree to which current prices accurately represent all pertinent and available information regarding the true worth of the underlying assets. Since all information that is available to traders is already factored into the market price, a truly efficient market makes it impossible to outperform the market.

Market efficiency states that prices reflect all information at any one time about a specific stock or market. An informationally efficient market is one in which the current price of a stock has taken into account all available information about that stock.

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Suppose that an issuing bank pays on documents that are conforming to the requirements of the letter of credit, but the seller h

AleksAgata [21]

Answer:

a) As long as the documents strictly comply with the letter of credit requirements, the bank will not have to reimburse the buyer

Explanation:

A letter of credit refers to the letter in which the bank is made a guarantee to pay the amount to a particular person by compiling the specific conditions during the exporting of goods

Since in the question, it is given that the seller has shipped the goods that are worthless i.e of no use for the buyer so in this case, the bank would not reimburse the buyer.

Therefore the correct option is A.

6 0

3 years ago

Why is Eagle Bank's 1-year CD the only account

Rudik [331]

Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

A certificate of deposit (CD) is a special bank savings account that earns interest on a lump-sum deposit for a predetermined period of time without withdrawals until the due period.

CDs are among the lowest-risk investments as they do not lose value if a bank fails based on the Federal Deposit Insurance Corporation (FDIC) insured guarantee.

Thus, Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

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7 0

2 years ago

Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating lever

Flura [38]

Question Completion:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $567,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year?

Answer:

Magic Realm, Inc.

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue $2,170,000 (32,400 * $67)

Variable costs 1,522,800 (32,400 * $47)

Contribution $647,200 (32,400 * $20)

Fixed expenses 567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= 8.07

The expected percentage increase in net operating income for next year

= 235.3%

Explanation:

a) Data and Calculations:

Last year's figures:

Sales = 32,400 games

Selling price per game = $67

Variable cost per game = $47

Fixed expenses = $567,000 per year

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue $2,170,000 (32,400 * $67)

Variable costs 1,522,800 (32,400 * $47)

Contribution $647,200 (32,400 * $20)

Fixed expenses 567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= $647,200/$80,200 = 8.07

2. Next year:

Sales = 41,796 games

Sales revenue = $2,800,332 (41,796 * $67)

Variable cost = 1,964,412 (41,796 * $47)

Contribution = $835,920

Fixed costs = 567,000

Net operating income $268,920

The expected percentage increase in net operating income for next year

Increase in net operating income = $188,720 ($268,920 - $80,200)

= $188,720/$80,200 * 100 = 235.3%

5 0

3 years ago

A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained

netineya [11]

Answer:

Ikiban Inc.

Statement of Cash flows

For the Year Ended June 30, 2017

Cash flow from operating activities:

Net income $117,510

Adjustments to net income:

Depreciation expense $67,600
Decrease in inventory $27,200
Decrease in prepaid expenses $1,900
Increase in accounts receivable ($18,500)
Gain from sale of equipment ($3,000)
Decrease in accounts payable ($9,500)
Decrease in wages payable ($9,900)
Decrease in taxes payable ($2,800) <u> $53,000</u>

Net cash flow from operating activities $170,510

Cash flow from investing activities:

Purchase of new equipment ($67,600)

Disposal of old equipment <u> $13,500</u>

Net cash flow from investing activities ($54,100)

Cash flow from financing activities:

Issuance of common stock $69,000

Retirement of note payable ($30,000)

Distributed dividends <u>($106,310)</u>

Net cash flow from financing activities ($67,310)

Net cash increase $49,100

<u>Cash balance June 30, 2016 $53,000</u>

Cash balance June 30, 2017 $102,100

4 0

3 years ago

What is a premium. pls help fast!!!111

Alecsey [184]

Premium is like a better version of something else

6 0

3 years ago