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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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On January 1, 2020, Hat Trick Manufacturing exchanged some equipment for a $750,000 zero-interest-bearing note due on January 1,
Marina86 [1]

Answer:

61,198.47

Explanation:

First we solve for the present value of the note receivables at January 1st, 2021 As we are asked for the interest revenue on the 2021 incoem statment

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $750,000.00

time  2.00

rate  0.10000

\frac{750000}{(1 + 0.1)^{2} } = PV  

PV   619,834.7107

now, we calcualte the interest considering the 10% implicit interest

619,834.7107  x 0.10 = 61,198.47

This will be the interest revenu for the year 2021

4 0
3 years ago
The difference between the economic surplus when the market is at its competitive equilibrium and the economic surplus when the
Zarrin [17]

Answer:

Deadweight loss

Explanation:

Deadweight loss can be defined as the lost economic surplus when a market is not allowed to adjust to its competitive equilibrium. The deadweight loss includes losses in both supplier and consumer surplus.

A deadweight loss happens when the equilibrium price for a good or a service cannot achieved usually due to external factors, e.g. price ceilings like rent control, specific taxes, etc.  

4 0
3 years ago
Read 2 more answers
A product-focused process is commonly used to produce: A) high-volume, high-variety products. B) low-volume, high-variety produc
valkas [14]

Answer:

C. high-volume, low-variety products

Explanation:

 There are other types of processes. This process is completely developed around the product, it is considered a continuous process with high volume of products that have low variety. <em>It presents a high facility utilization (this is considered an advantage), organized by product, which receives a high-fixed price, but the variable cost is low.</em>

7 0
3 years ago
On May 1, 2021, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 200000 shares of $1
Alenkinab [10]

Answer:

B) did not change.

Explanation:

Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.

Dividend Value = 200,000 x 10% x 25 = $500,000

Par Value of Stocks = $1 x 20,000 = $20,000

Add-in-capital excess of par common stock = ($25-$1) x 20,000 = $480,000

Following entry will be recorded

Dr. Retained earning                                              $500,000

Cr. Common Stock                                                 $20,000

Cr. Add-in-capital excess of par common stock  $480,000

As all of the accounts are equity accounts and decrease in one equity account and increase in another equity account will not change the total stockholders equity value.

3 0
3 years ago
Theresa works as a Risk Management Specialist for an investment corporation. Which best describes her educational pathway?
miss Akunina [59]

Explanation:

B or d m8 I'm guessing jsjwiww

4 0
3 years ago
Read 2 more answers
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