1. Wrong model.
2. Model implementation.
3. Model usage.
4. Uncertainty on volatility.
5. Time inconsistency.
6. Correlation uncertainty.
7. Complexity.
8. Illiquidity and model risk.
Answer:
$ 896,000.00
Explanation:
September $800,000
October $920,000
November $840,000
December $760,000
Payments for November:
30percent purchase for November: = 30/100 x $ 840,000.00
= $ 252,000.00
70 percent payment for the previous month
=70/100 x $ 920,000.00
= 644,000.00
Total payments = $ 252,000 + $ 644,000.00
=$ 896,000.00
Answer:
The correct answer is letter "A": Unexpected increases in the number of suppliers.
Explanation:
Frauds or money cleansing usually requires the help of a network of different business interconnected to clear the illegal funds with the excuse of having made commercial activities that never took place. In most cases, accounting documents are faked so that the proceeds of the questionable funds may seem as legal as possible.
In that case, if a company counts with more suppliers and fraud is taking place in the organization, <em>they will have the excuse of making more payments so more funds can go out of the company</em>.
Answer:
$50.8
Explanation:
As per given Data
Dividend Paid = $3
Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.
Formula for PV of dividend
PV of Dividend = Dividend x ( 1 + growth rate )^n x ( 1 + r )^-n
1st year
PV of Dividend = $3 x ( 1 + 20%)^1 x ( 1 + 14% )^-1 = $3.16
2nd year
PV of Dividend = $3 x ( 1 + 20%)^2 x ( 1 + 14% )^-2 = $3.32
3rd year
PV of Dividend = $3 x ( 1 + 20%)^3 x ( 1 + 14% )^-3 = $3.50
After three years the dividend will grow at a constant rate of 5%, so we will use the following formula to calculate the present value
PV of Dividend = [ $3 x ( 1 + 20%)^3 x ( 1 + 5%) / ( 14% - 5% ) ] x [ ( 1 + 14% )^-3 ]
PV of Dividend = $40.82
Value of Stock = $3.16 + $3.32 + $3.50 + $40.82 = $50.8
False. Gpd was not designed to assess welfare
