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3 years ago

Which of the following statements is FALSE?

Business

1 answer:

Vlada [557]3 years ago

5 0

Answer:

Total return equals earnings multiplied by the dividend payout rate.

Explanation:

Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.

The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.

Mathematically

Returns= {(New price- Old price) + Dividend} ÷ Old price

So the statement total return equals earnings multiplied by the dividend payout rate is false

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Visic Corporation, a manufacturing company, produces a single product. The following information has been taken from the company

Vilka [71]

The Schedule of cost of goods manufactured for the year of Visic corporation is shown below.

Visic Corporation

Schedule of Cost of Goods Manufactured

Particulars Amount (in $)

Direct materials:

Raw materials inventory, beginning ..................... 20,000

Add: Purchases of raw materials..........................480,000

Raw materials available for use ...........................500,000

Deduct: Raw materials inventory, ending ..............30,000

Raw materials used in production........................ 470,000

Direct labor..............................................................90,000

Manufacturing overhead ........................................300,000

Total manufacturing costs.......................................860,000

Add: Work in process inventory, beginning..............50,000

910,000

Deduct: Work in process inventory, ending..............40,000

Cost of goods manufactured ..................................870,000

Hence, the schedule of cost of goods manufactured will be as shown above.

Learn more about cost of goods manufactured:

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1 year ago

Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune

Contact [7]

Answer:

a. If the interest rate was 8%, how much would you have been prepared to bid for the prize?

this is an ordinary annuity:

annual payment = $9,420,713 / 20 = $471,035.65

number of periods = 19 periods

interest rate = 8%

therefore, the present value annuity factor = 9.6036

the present value of the annuity = $471,035.65 x 9.6036 = $4,523,637.97 ≈ $4,523,638

b. Enhance Reinsurance Company was reported to have offered S4.2 million. Use Excel to find the return that the company was looking for.

using the IRR function in Excel, the return that Enhance was looking for was 9.05%

3 0

3 years ago

Describe at least three exchange rate factors that are likely to attract foreign investors to a country's currency. Explain why

lana66690 [7]

Answer: 1. High Interest

2. Low Government Debt

3. Political Stability

Explanation:

Foreign Investors are Investors and investors always like to invest where there are prospects of growth and profit.

High Interest Rates give them the opportunity to invest their money in a currency that will give them a great return because a country where there are high interest rates imparts this on its currency which causes it to rise in value thereby giving currency holders a capital gain.

Another factor is Government Debt. A country with high Government debt will typically be unable to raise funds through the bond market easily. This shortage of funds can lead to inflation which devalues currency causing foreign currency investors to flee.

Finally there is the Political Factor (other factors exist). A stable country politically stands a better chance of maintaining a higher value currency that one with lower political stability. This is because political Stability attracts investors and as more investments come into a country, this reflects in its currency by making it stronger which will attract foreign currency investors.

6 0

4 years ago

Agent Pam receives an offer on one of her listings for less than the asking price. The home has been listed for several months;

Jobisdone [24]

Answer: Counteroffer

Explanation: As the primary duties of Pam lies towards her clients, all her efforts should be made to make the deal favorable for her client. Pam should make a counteroffer to the buyer to make the price high enough so at least she"ll be able to ask her client for any negotiation possible. Hence counter offering the client is the best possible way for her .

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3 years ago

Monetary Policy in Flosserland: In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has ha

evablogger [386]

Answer:

The correct answer is d) neither the long-run Phillips curve nor the Classical dichotomy.

Explanation:

The answer that best suits the situation described is the Phillips curve in the short term but not in the long term.

The Phillips curve starts from the principle that the amount of money circulating (commonly called "money supply") has real effects on the economy in the short term. In this way, an increase in the money supply would have a beneficial effect on aggregate demand, as citizens will spend more when their nominal wages are increased (known as “monetary illusion”) and a more favorable framework for investment and investment will be created. that the prospects of rising prices will improve the expectations of corporate profits. The improvement in aggregate demand would result in greater economic growth, and this in turn in the creation of new jobs. This is how an inverse relationship between inflation and unemployment is established, expressed graphically by a downward curve.

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3 years ago