Answer:
Stock C is correct answer
Explanation:
According to the investigation of LaPorta's 1996 study Stock expected to have poor earnings growth has the greatest alpha. Unlike, the option stock A and option stock B with modest and higher earnings growth.
Corrct Answer: Stock C.
Answer:
C. In a pure fixed cost structure, the unit selling price and unit contribution margin are equal.
Explanation:
In Accounting, cost behavior is an indication of how costs in a firm reacts to change in activity levels. There are basically three types of cost behavior; fixed costs, variable costs and semi-variable costs.
The relationship between cost behavior and profits are;
- A pure fixed cost structure offers more security if volume expectations are not achieved.
- In a pure variable cost structure, when revenue increases by $1, so do profits.
- A pure variable cost structure offers higher potential rewards.
Answer:
see below
Explanation:
Simple interest is a method of calculating gains or yields from savings, deposits, or credit. In simple interest, the interest earned is a constant figure throughout the life of an investment or loan. Simple interest is usually expressed as a percentage, called the interest rate. It is calculated by multiplying the interest rate by the principal amount and by the time. The interest rate quoted applies for a year.
Unlike simple interest, interest earned in compound interest increases every year. Compounding interest refers to the practice of adding interest earned to the principal amount. An increase in the principal amount results in an increase in the interest earned. Due to the compounding effect, a compound interest-earning account will yield more interest than a simple interest-earning account.
Answer:
The amount of rent expense that will be reported on the Year 1 income statement is $1,800
.
The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $5,400.
Explanation:
Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.
The duration of the payment is 12 months, hence
Monthly amortization = $7,200/12 = $600
Rent expense for year 1 = $600 × 3 = $1,800
The ending balance in the prepaid rent account will be
= $7,200 - $1,800
= $5,400
This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.
An investors primary goal is to make money. More specifically, money that is greater than the sum amount initially invested.
