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aleksandr82 [10.1K]
2 years ago
15

Computation of the annual percentage rate (APR) recognizes interest compounding, whereas computation of the effective annual rat

e (EAR) does not. a. True b. False
Business
1 answer:
Korolek [52]2 years ago
8 0

Answer:

FALSE

Explanation:

This is false because computation of effective annual rate do recognize interest compounding. It is the interest rate that is earned or paid on investment or loans as a result of COMPOUNDING over a given period of time. Emphasis on the interest earned after accounting for the effects of compounding. It differs alot from annual percentage rate in that annual percentage rate does not take into consideration the effect of compounding in most part of the world.

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When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores.​?
Mila [183]

Answer:

False

Explanation:

The reason is that the net difference depends upon the efficiency of the company and doesn't always gives a smaller number of score. There numerous examples like Nestle which integrated its finance departments and other departments which generated greater value for the company in the same year above the budget set. So when the company starts control costs with its greater efficiency achievements the favourable variance starts growing and vice versa.

6 0
3 years ago
Read 2 more answers
To become an architect, you need six years of education. To become a physical therapist, you need two years of education. Which
Sloan [31]
Architect, they have to have four more years of education.
Even though I'd think a therapist makes more.
8 0
3 years ago
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The semiannual interest payment on a $10,000, 5% bond would be
Nutka1998 [239]
The semi annual interest payment on a $10,000 5% bond would be $250
8 0
2 years ago
Which one of the following types of losses is excluded from the determination of net income in income statements? Material losse
alexgriva [62]

Answer: The correct answer is "Material losses resulting from correction of errors related to prior periods.".

Explanation: It is generally established that the type of loss that is excluded from the determination of net income in the income statement are the material losses resulting from transactions in the company's investments account.

7 0
2 years ago
"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o
Kaylis [27]

Answer:

4.5%

Explanation:

Stock R (Beta) = 1.5

Stock S  (Beta) = 0.75

Expected rate of return on an average stock (Rm)= 10%

Risk free rate (Rf) = 4%

Required Return (Re) = Rf +(Rm-Rf) B

Required Return = 0.04 + (0.10-0.04) B

Required Return = 0.04 + 0.06B

Stock R = 0.04 + (0.06 * 1.50)

Stock R = 0.04 + 0.09

Stock R = 0.13

Stock R = 13%

Stock S = 0.04 + (0.06 * 0.75)

Stock S = 0.04 + 0.045

Stock S = 0.085

Stock S = 8.5%

Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.

= 13% - 8.5%

= 4.5%

7 0
2 years ago
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