Invoice vs. Retail. ... The invoice price<span> is what the </span>dealer pays<span> for the </span>car<span> from the</span>manufacturer<span>, the </span>price<span> you </span>pay<span> is </span>called<span> the retail </span>price<span>. Meanwhile, the </span>price<span> on the window sticker is the </span>manufacturer's<span> suggested retail </span>price<span> (MSRP), or what the</span>manufacturer<span> hopes the </span>car<span> will sell for.</span>
Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
Explanation:
Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.
For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .
The present value of both are:
= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²
= $1,486.43 = $8,264.46
<em>Notice the difference. The longer term investment was more exposed to interest rate effects. </em>
Answer:
Business-facing processes
Explanation:
As we know that preparation of the financial statements is necessary for all the types of the organization whether small or large, private or public company, etc.
The preparation of the financial statement is done by the accounting and finance department of the organization.
The functions like creating financial statements, paying accounts payable, and collecting accounts receivables are done by business organizations so that no problem will exist in the future.
Such types of business organization are called legal organization who are conducting their business activities in an ethically manner
Answer:
e. Minimize the weighted average cost of capital (WACC)
Explanation:
A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.
B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.
C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.
D: It is out of question because target capital structure cannot obtain the bond rating.
E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.
Answer:
Correct answer is B.
Explanation:
B is correct. In the Strong-form efficient market hypothesis, all public and private information is reflected in prices and it is impossible for anyone to outperform the market. Only new information affects stock prices, but then, this new information is processed correctly and reflected in the price of an asset so fast before anyone can act on it. As a result, the price action becomes totally unpredictable and prices appear to move randomly.
