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3 years ago

Extrapolative expectations work when prices are rising, but not when prices decline. True or False True False

Business

1 answer:

Lemur [1.5K]3 years ago

6 0

Answer:

False

Explanation:

Extrapolative expectations refer to an expectation in which there is a continuation of trend that means if the price of a property rises, then the demand is also rising and it pushed for more prices also there is a condition when the price is falling so it would also decrease in the market supply also it pushed out down

So the given statement is false

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Assume that Speedboat Company has beginning finished goods inventory of $10,000; ending finished goods inventory of $150,000; go

gtnhenbr [62]

Answer:

$60,000

Explanation:

The movement in finished goods balance between the beginning and end of a period is due to the cost of goods sold and goods manufactured. This may be expressed mathematically as;

Opening balance + manufactured goods - cost of goods sold - other write-offs = closing balance.

where there are no other write-offs,

$10,000 + $200,000 - cost of goods sold = $150,000

Cost of goods sold = $10,000 + $200,000 - $150,000

= $60,000

7 0

3 years ago

Exchange corp. is a company that acts as a facilitator in tax-favored real estate swaps. such swaps, know as 1031 exchanges, per

Vikki [24]

Answer:

1) No, the report prepared by the bookkeeper is not useful as a performance report is prepared in per unit basis not on Total basis.

See performance report attached.

3 0

3 years ago

Assets Liabilities and Net Worth

KiRa [710]

Answer:

The correct answer is $30 billions.

Explanation:

The checkable deposits are given as $140 billions.

The total reserves are $51 billions.

The required reserve rate is 30%.

The required reserves will be

=30% of $140 billions

= $0.3 \times 140$

=$42 billions

The excess reserves will be

=total reserves-required reserves

=$51-$42

=$9 billions

Maximum expansion by lending will be

= $\frac{excess reserves}{required \ reserve\ rate}$

= $\frac{9}{0.3}$

=$30 billions

So, the money supply can be expanded by a maximum amount of $30 billions.

5 0

2 years ago

Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?

Lerok [7]

Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale

Explanation:

Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.

Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".

4 0

2 years ago

Reddick Enterprises' stock currently sells for $35.50 per share. The dividend is projected to increase at a constant rate of 5.5

Shalnov [3]

Answer:

E. $41.69

Explanation:

We know,

Value of stock ( $P_{0}$ ) = $\frac{D_{1}}{k_{s} - g}$ [In case of constant growth model]

$D_{1}$ = Next year or expected dividend

$k_{s}$ = required rate of return

g = growth rate = 5.50%

However, as there is no information regarding expected dividend, we will use the alternative formula to calculate the stock's expected price 3 years from today.

$P_{3}$ = $P_{0}$ × $(1 + g)^{3}$

Here, current stock price, $P_{0}$ = $35.50

Therefore, $P_{3}$ = $35.50 × $(1 + 0.0550)^{3}$

$P_{3}$ = $35.50 × 1.1742

Stock's expected price 3 years from now = $41.69 (rounded to two decimal places)

Therefore, option E is the answer.

4 0

2 years ago