Why are both non excludability and non rivalry important elements of public goods?

2. With sufficient detail, Discuss how materiality and risk are related and integrated into the audit

Ipatiy [6.2K]

Answer:

Audit Risk and Materiality

These two concepts have an inverse relationship. When the materiality level is set low, the audit risk envisaged by the auditor is on the high side. When the materiality level is set high, the audit risk as perceived by the auditor is on the low side.

But, what exactly is materiality? Materiality refers to the basis that can change or influence the judgment of a reasonable person arising from a quantitative and qualitative omission or misstatement of a fact. And audit risk refers to the risk of material misstatement in the financial statements presented by a company.

Explanation:

The risk of material misstatement in the financial statements is the reason that professional auditors design their audit procedures to reduce the audit risk to an acceptably low level. This implies that auditors gather more audit evidence when the materiality is set to a low level, showing that audit risk has increased and vice versa.

4 0

3 years ago

In the 1990s, many isolated individuals began to see the growth of federal prison populations as a problem. Later they would for

tekilochka [14]

Answer:

C. Incipient Stage of the Social Movement

Explanation:

Social Movements represent group actions. The movement is usually characterized by the coming together of organisations or individuals, it can be formal or informal. The focus of social movements is to provoke action or bring about change in areas of the society.

Social Movements are marked by 4 stages: Emergence, coalescence, bureaucratization, and decline

Stage 1: Emergence or Incipient Stage - This stage is where individuals in isolated areas begin to see or believe there is a problem with a policy or an area of society. There is disappointment with certain social or political issues. It is the stage of realisation of a problem and dissatisfaction with the problem and this is the stage identified in the question.

Stage 2: Coalescence - This stage goes beyond the dissatisfaction to people, groups coming together to discuss the issue and then campaigns and protests begin to emerge

Stage 3: bureaucratization- Powerful unions begin to emerge, these coalitions also begin to acquire political power to cause change in the issues they are addressing.

Stage 4: Decline - Decline can be defined as the fizzling out of the movement, it can be due to the fact that it succeeded in causing a societal change in the area addressed or it failed and had to disband.

3 0

3 years ago

Molen Inc. has an outstanding issue of common stock with an annual dividend of $8.50 per share. The stock's annual dividend is e

Pavel [41]

Answer:

price stock sell today is $141.67

Explanation:

given data

annual dividend = $8.50

stock = 6.0% = 0.06

to find out

what price stock sell today

solution

we know that here annual dividend and stock rate

so will find stock sell today by given formula that is

stock sell today = annual dividend / stock .............1

put here all these value

stock sell today = annual dividend / stock

stock sell today = 8.50 / 0.06

stock sell today = 141.67

so price stock sell today is $141.67

4 0

4 years ago

Which scenario best describes purchasing property insurance? Mitchell buys insurance to protect his new stereo system. Carmen ge

Yuki888 [10]

Answer:

Lee buys insurance to protect her home after crime rates go up

Explanation: Property insurance gives protection against majority of risks that can occur to a property.

Homeowners and Renters insurance are two types of property insurance. They usually provide insurance against personal property.

Carmen insuring her car is known as motor vehicle insurance.

4 0

4 years ago

Read 2 more answers

Problem 14-13 Calculating the WACC [LO3] Dinklage Corp. has 4 million shares of common stock outstanding. The current share pric

sleet_krkn [62]

Answer:

WACC = 8.97%

Explanation:

total value of equity = $70 x 4,000,000 = $280,000,000

cost of equity:

$70 = $4.4935 / (Re - 4.5%)

Re - 4.5% = 6.42%

Re = 10.92%

total value of debt:

$75 million x 0.95 = $71,250,000

YTM = {70 + [(1,000 - 950)/25]} / [(1,000 + 950)/2] = 72 / 975 = 7.3846%

$60 million x 1.07 = $64,200,000

YTM = {60 + [(1,000 - 1,070)/8]} / [(1,000 + 1,070)/2] = 51.25 / 1,035 = 4.9517%

weighted cost of debt = ($71,250,000 / $135,450,000 x 7.3846%) + ($64,200,000 / $135,450,000 x 4.9517%) = 3.8845% + 2.347% = 6.2315%

total value of the firm = $280,000,000 + $135,450,000 = $415,450,000

equity weight = $280,000,000 / $415,450,000 = 0.674

debt weight = 1 - 0.674 = 0.326

WACC = (0.674 x 10.92%) + (0.326 x 6.2315% x 0.79) = 7.36% + 1.605% = 8.965% = 8.97%

8 0

4 years ago