Answer:
C. Predictive value.
Explanation:
Relevant information is able to make a difference in user decisions. To do so, it must have predictive value, confirmatory value, or both. Financial information has predictive value if it can be used as an input in a predictive process.
You would most likely use a scanner to input old photos into a computer.
Answer:
102.47 and 20
Explanation:
What is economic order quantity?
EOQ or the economic order quantity is the level of inventory which is the most optimal level for reducing inventory costs. It assumes that the supplier will supply as and when required and follows a just in time policy.
Now that we are familiar with the concept, let's recall the formula:
EOQ= SQRT( 2* D *k /h)
D - Annual demand, which is 700
k - Replenishment cost, which is $15
h - holding cost, which is 10% of inventory value = 0.1 × $20 = $2
So, EOQ = SQRT(2 * 700 * 15/2) = 102.47 units
Reorder point = daily demand * lead time + safety stock = 700/365*5+10=20 Units
Answer:
Stock analysts can use fundamental analysis to identify undervalued stocks
Rationale- in stock market , stock analysts know the pros and cons of investing shares in stock market. They have experience to take decision regarding to shares building. With their experience they can easily identify the undervalued stocks and invest shares in valued stocks. Manuel builds his portfolio on the stock analyst.
Answer:
3.5%
Explanation:
The quantitative theory of money (QTM) states that MV=PT (eq.1). M is the money supply, V is the velocity of circulation, P is the price of a typical transaction and T is the total number of transactions. The velocity of circulation is the number of times that a dollar changes of holder y a period. We can also write eq.1 as MV=PY (eq.2) because the cuantitative equation assumes that the valu of transactions is equal to the GDP (Y). The QTM also has two main assumptions: V is constant in the short term and Y is given by factors and technology. If we write eq.2 in a rate of change form, then we have: ΔM+ΔV=ΔP+ΔY (eq.3).
First, ΔP represents changes in prices which is know as inflation rate (given by the problem). Second, ΔY is the growth rate of real GDP (also given by the problem). Third, ΔV is the rate of change of money velocity, but in this case, velocity does not change, which means the rate of change is 0. And, ΔM is what we have to find. According to this, we have a new equation:ΔM=ΔP+ΔY (eq.4).
Then, ΔM=2%+1.5%=3.5%. The Fed should change money supply in 3.5%
