Answer:
Accounting information identifies, records and communicates information about a business.
Explanation:
The accounting information identified the business records and communicate the business information to the insiders and outsiders also it does not have any effect on everyone except the stakeholders. In addition to this, it is not depend upon the valuation made for the stock market
So as per the given situation, the above statement should be correct
Answer:
Elasticity of demand = 1
Explanation:
In the given scenario, if there are any changes in the income of Arista, the percentage of spending is always constant. We can say that income elasticity of demand is always equal to 1 .
Another change in the Arista scenario is that the percentage change in demand is always equal to the percentage change in income.
Answer:
a. Convertible, d. Noncumulative
Explanation:
The feature that it can be exchanges for common stock means that the holders of these preferred share have an option to convert their preferential holdings to common stock at and within predetermined period of time.
However since it says " the dividends in arrears are lost", it means that these preferred shares are non-cumulative. As the holder of this type of shares, you have no right to receive past dividends should the company begin to issue preferred dividends again. If the issuing company incurs losses in that year, it can choose to skip paying dividends on these convertible, non-cumulative preferred shares.
Answer: See explanation
Explanation:
The formula to use here will be:
required rate = risk free rate + beta × (market return - risk free rate).
where,
risk free rate = 5%
beta =0.20.
market return = -30%.
Therefore,
required return = 5% + 0.20 × (-30% + -5%)
= 5% + 0.2(-35%)
= 5% - 7%
= -2%
Therefore, the return on portfolio should have been -2% but the portfolio manager produced a return of −10%
Since -10% is lower than -2%, we can deduce that the claim of the manager is wrong.
A. True, Yield to Maturity or called YTM is a measure of your annualized return if a bond, or all the bonds in a fund, are held to maturity.
