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djyliett [7]
3 years ago
13

Investors gravitate toward the latest hot stock even though it has never paid a dividend. Even though net income is projected to

fall over the current and next several years, the price of the stock continues to rise. What behavioral concept may explain this price pattern?A. , OverconfidenceB. , Loss aversionC. , Mental accountingD. , Calendar bias
Business
1 answer:
mestny [16]3 years ago
5 0

Answer:

The answer is A. Overconfidence

Explanation:

Investors in the described questions obviously have too much belief on themselves for the their abilities to assess the firm's capacities to create values for its shareholders given there are no certain evidences, for example, the constant and/or growing dividend streams, the better profit-generating capacities.

This is a good example of how Investors is overconfident in a stock's performances although it is unclear that the firm has been or will be performed at the investors' expected level.

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You have a small business that makes $50,000 accounting and economic profit for you. As a disabled person, you must work at home
kifflom [539]

Answer: This means: "d. Your economic profit has gone down and your accounting profit has stayed the same."

Explanation: The difference between the accounting and economic benefit is associated with the type of cost that each includes:

The accounting benefit is nothing more than the difference between income and cost.  In this case it is still $50000.

The economic benefit includes not only explicit costs. The economic benefit is the difference between income and total costs (explicit and implicit). Therefore, this benefit is less than the accounting benefit. Because in this case the cost of working at home is considered.

5 0
3 years ago
Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ___
noname [10]

Management moving production or other parts of the company's value chain to countries where wages are lower is an example of cost drivers.

<h3>What are cost drivers in business?</h3>

The cost drivers can be defined to be the direct cause of the expenses that may occur in a business. These are the activities that may cause a cost to happen in the business. For instance this could be the amount of water that is used monthly in a given area.

Hence we can say that management moving production or other parts of the company's value chain to countries where wages are lower is an example of cost drivers.

Read more on cost drivers here: brainly.com/question/14904453

#SPJ1

5 0
1 year ago
Laubitz Company begins operations on Apr.1. Information from job cost sheets shows the following:
Inessa [10]

Answer:

1. 2. April 30 $11600

31-May $20100

2. April 30 $3,200

31-May $11,90

3. Profit April 0

May$800

June $2975

Explanation:

1) Calculation for Work in Process Inventory at

April 30 and 31-May

Work in Process Inventory at

April 30=7500+4100

Work in Process Inventory at

April 30=$11600

Work in Process Inventory at31-May =4100+6900+4700+4400

Work in Process Inventory at31-May= $20100

2) Calculation for Finished Goods Inventory at

April 30 and 31-May

Finished Goods Inventory at

April 30: $3,200

Finished Goods Inventory at 31-May =7500+4400

Finished Goods Inventory at 31-May= $11,900

3) Calculation for Gross Profit

Gross Profit April : 0

Gross Profit May =3200*25%

Gross Profit May=800

Gross ProfitJune :- Job 10 =(7500+4400)*25% Gross Profit June 2975

6 0
2 years ago
A machine would cost $100,000, and would generate revenues of $21,000 per year. However, O&amp;M costs would be $7,000 per year.
fgiga [73]

Answer:

(a) What is the net present value of this potential investment?

Net present value of Investment is $(3,903)

(b) Should you invest in this machine?

We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.

Explanation:

Present Values:

Revenue                    $144,146

O&M Cost                  ($48,049)

Initial Investment      <u>$(100,000)</u>

Net Present value     $(3,903)

Working :

Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r

Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146

O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049

8 0
3 years ago
Read 2 more answers
Where are did spain settle in
Natasha2012 [34]
Christopher Columbus discovered the Jew World, but did not know that it was an unknown world. Because of his voyages, Spain was ablemto settle in present-day Florida and Mexico. Spain also settled down in most of Latin America. Also, Spain settled in half of South America. Although, now al of the places they settled in have revolted and gained independence from Spain, or were sold to other countries and later got their independence.
6 0
3 years ago
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