Answer: All of the above
Explanation:
The options include:
a. It's available 24 hours a day, 7 days a week.
b. All reports are handled in a highly confidential manner.
c. You do not have to identify yourself on the call.
d. All of the above.
An ethics line refers to the anonymous on-line system which can be used by an employee to report bad behavior or something unethical or illegal.
Ethics line are typically available 24 hours a day, 7 days a week and reports made are confidential. Therefore, the correct option is "All of the above".
Answer:
Stock Y is overvalued and Stock Z is undervalued.
Explanation:
The stock is fairly valued when the required rate of return on the stock is equal to its expected return. If the expected return on the stock is more than the required rate of return, the stock is undervalued and vice versa.
The required rate of return on the stock is calculated under the CAPM approach suing the following formula.
r = rRF + Beta * rpM
Where,
- rRf is the risk free rate
- rpM is the risk premium on market
r of Stock Y = 0.052 + 1.3 * 0.077 = 0.1521 or 15.21%
The required rate of return of Stock Y (15.21%) is more than its expected rate (14.9%) which means the stock is overvalued.
r of Stock Z = 0.052 + 0.95 * 0.077 = 0.12515 or 12.515%
The required rate of return of Stock Z (12.515%) is less than its expected rate (12.8%) which means the stock is undervalued.
Answer: a. More of Project A's cash flows occur in the later years.
Explanation:
When a project has its cashflows occurring in later years, the NPV will be less because the discount rate would have a greater period to discount it in as opposed to cashflows that occur more recently which would receive less discounting from the discount rate.
As a result of Project A having more distant cashflows, the discount rate discounted its cash flows more which is why higher rates led to its NPV being zero because those higher rates got to discount it over a longer period.
Answer:
FV= $804,326.91
Explanation:
Giving the following information:
Monthly deposit (A)= $100
Interest rate (i)= 0.092/12= 0.0077
Number of periods= 45*12= 540 months
<u>To calculate the future value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {100*[(1.0077^540) - 1]} / 0.0077
FV= $804,326.91
Answer:
False
Explanation:
Cash larceny is the action of stealing company cash already been registered in the books of accounts for a specific accounting period. An employee of the company perpetrates the theft. It involves the employee scheming and executing the taking away of cash recorded in the books without the employer's authority.
Cask larceny happens in the cash register, in the safe, or from cash deposits in transit. In most instances, larceny involves small amounts of money. As the cash is recorded in the books of accounts, larceny can be detected with proper cash reconciliation.
