Answer:
b. The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.
Explanation:
If the markets are strong form efficient, it means the consensus of the market related to future impact of FDA approval on earnings would be correct, the stock price of today correctly estimates the future earnings, and therefore the stock price would not change when the earnings are released.
Answer:
The correct word for the blank space is: lower; buyers to offer higher prices.
Explanation:
In a market driven by supply and demand laws, shortages are caused because of excess in demand as a result of lower prices. Thus, that price is lower than the equilibrium price. Besides, if there is a need to push that price to its equilibrium level, sellers will have to increase the price implying buyers will have to offer higher prices.
Answer:
B. 500
Explanation:
Portfolio return = Weighted average return
Let the amount invested in portfolio is x and amount invested in risk free = 1000 - x
27.5% = 20%*x + 5%*(1000-x)
27.5% * 1,000 = 20%x + 50 – 5%x
0.275 * 1,000 = 15%x + 50
275 - 50 = 15%x
225 = 15%x
x = 225 / 0.15
x = $1,500
Hence, the amount of money borrowed = $1,500 - $1000
= $500
Answer and Explanation:
The adjusting entry is as follows
Interest Expense ($455,000 × 6% × 6 months ÷ 12 months) $13,650
To Interest payable
(Being interest expense is recorded)
here the interest expense is debited as it increased the expenses and credited the interest payable as it also increased the liabilities
The six months is calculated from Jan 1 to June 30
