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kondor19780726 [428]
3 years ago
12

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level,

then a.the expected future return must be less than the most recent past realized return. b.the past realized return must be equal to the expected return during the same period. c.the expected future returns must be equal to the required return. d.the required return must equal the realized return in all periods. e.the expected return must be equal to both the required future return and the past realized return.
Business
1 answer:
Alex_Xolod [135]3 years ago
4 0

Answer:

c.the expected future returns must be equal to the required return.

Explanation:

When the stock is at equilibrium than the intrinsic value of the stock is equivalent to the market price of the stock that depicts that the expected returns which held in the future should be equivalent to the required return

Therefore the option c is correct

And, the other options that are mentioned in the question are incorrect

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Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $4 per liter. It costs $1
Sergeu [11.5K]

Answer:

a) Product G should be produced and sold

b) Net financial advantage      $80

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .  </em>

                                                                                            $

Revenue after split-off point  

($9×  40 litres)                                                                 360

Revenue at the slit of point  

($4 ×   40)                                                                        <u> (160)</u>

Additional income from further processing                  200

Further processing cost ($3× 40)                                  <u>(120)</u>

Incremental income from further processing                <u> 80</u>

Incremental income from further processing = $80

a) The product F should be processed further and sold as product G. Doing so would increase the net income by $80.

b) Net advantage                                               $80

4 0
3 years ago
What factors might have caused the auditor to inappropriately accept the assertions by management that the vendor allowances sho
Korvikt [17]
Auditors may be inclined to accept client representations because of a natural bias to want <span>to trust the client.
Before doing the auditing process, auditor usually receive a small briefing from the management team on the financial system that they use in recording their transactions. </span>If these allowances had been used in the past the auditor<span> may have been inclined to accept them as regular business practices</span>
6 0
3 years ago
The following are national income account data for a hypothetical economy g in billions of dollars: government purchases ($1,050
kirill115 [55]

Answer:

the GDP is $6,850 billion

Explanation:

The computation of the GDP for this economy is as follows:

GDP = Personal consumption expenditure + Government purchases + Gross private domestic investment + Exports- imports

= $4,800 + $1,050 + $1,130 + $240 - $370

= $6,850

hence, the GDP is $6,850 billion

5 0
3 years ago
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend. T
Rasek [7]

Answer:

$73,254.81

Explanation:

We assume fees paid as annuity (PMT). Now, we have to find Present Value (PV) of annuity

PV = PMT*(1-  1/(1+r)^n) / r

Where PMT = 10000, n = 8 payments, r r = ​4.0%/2 = 2% = 0.02

PV = $10,000 * (1 - 1/(1+0.02)^8) / 0.02

PV = $10,000 *  (1 - 1/1.171659381) / 0.02

PV = $10,000 * 0.146509629 / 0.02

PV = $73254.8145

PV = $73,254.81

$73,254.81 is the money i must deposit today if i intend to make no further deposits and would like to make all the tuition payments from this account.

6 0
3 years ago
Your group has a presentation to the class in two weeks. moe believes that the presentation should be similar to a presentation
77julia77 [94]
None of those presentation methods solve problems
6 0
3 years ago
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