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3 years ago

Based on the pure expectations theory, is the following statement true or false?

Business

1 answer:

Annette [7]3 years ago

5 0

Answer:

The correct answer is letter "B": False.

Explanation:

The Pure Expectations Theory uses long-term interest rates to predict future interest rates in the short run. Investors consider different investments to predict future interest rates. In the example, the statement indicates the opposite. It is taking a short-term interest rate (one-year bond), to calculate the return of a long-term investment (five-year bond).

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Financial statements are influenced by five important forces that determine a company's competitive intensity: (A) industry comp

Ivan

Full question:

Financial statements are influenced by five important forces that determine a company's competitive intensity: (A) industry competition, (B) buyer power, (C) supplier power, (D) product substitutes, and (E) threat of entry.

Select one:

True

False

Answer:

Financial statements are influenced by five important forces that determine a company's competitive intensity - True

Explanation:

Michael Porter’s five forces of rival(s) can be applied to monitor and investigate the competitive edifice of an industry by attending 5 forces of opposition that impact and form profit potential. Supplier power. An evaluation of how simple it is for suppliers to force up prices. Buyer power. An estimation of how accessible it is for buyers to push prices dropping.

Competitive rivalry. The principal driver is the quantity and ability of competitors in the market. The threat of substitution. Where close alternate goods endure in a market, it improves the likelihood of customers shifting to alternatives. The threat of new entry. Favorable markets bring new entrants, which decays profitability.

3 0

3 years ago

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The

dlinn [17]

Answer:

Selling price= 240*1.4= $336

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (252,000/30,000) + 2.1

Predetermined manufacturing overhead rate= $10.5 per machine hour

Job T687:

Number of units in the job 10

Total machine-hours 30

Direct materials $ 675

Direct labor cost $1,050

Now, we need to allocate overhead and determine the total cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 10.5*30= $315

Total cost= 675 + 1,050 + 315= $2,040

Finally, the unitary cost and selling price:

Unitary cost= 2,040/10= $240

Selling price= 240*1.4= $336

3 0

3 years ago

Which one of the following regarding the State Disability Insurance (SDI) program is true?

solmaris [256]

Answer:

B) The State Disability Insurance (SDI) program benefits received for a period of disability are not taxable as income, but benefits received for time off under the Paid Family Leave program are federally taxable as income.

Explanation:

Disability insurance benefits are not reported for tax purposes with one exception. If a person are receiving unemployment insurance benefits,

become unable to work due to a disability, and begin receiving disability insurance benefits, your disability insurance benefits are considered a substitution for your unemployment insurance benefits, and will then be reported for tax purposes.

If disability insurance benefits are reported, a notice will accompany the first benefit payment sent to you advising that the benefits are being reported to the Internal Revenue Service. The employment development department will provide you with a 1099G tax form in January showing the reported amounts paid and forward a copy to the Internal Revenue Service.

Paid family leave benefits are reported for federal purposes but not state tax purposes.

Paid family leave benefits are not taxable or reported to the California State Franchise Tax Board.

4 0

3 years ago

ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00. What is ABC

Virty [35]

The ABC's dividend yield when the ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00 is 10%.

<h3>What is yield?</h3>

The yield on a security is defined as the measurement of the ex-ante instrument to a safety holder in financing.

It is a cardinal part of the return on an investment, with some other being the change in the security's market price.

The formula of calculating the yield is:

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100$

According to the given information,

Dividend Per Share= $1.40,

Net Income= $1,40,000

Current Price= $14

Now, apply the formula in the given formula,

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100\\\\\text{Dividend Yield} =\dfrac{1.40}{\$14}\times 100\\\\\text{Dividend Yield} =10\%$

Therefore, ABC's dividend yield is 10%.

Learn more about yield, refer to:

brainly.com/question/2506978

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5 0

2 years ago

A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 ye

pochemuha

Answer:

Project NPV at 5% discount rate = $1346 .78

Project NPV at 18% discount rate = -597.4

Explanation:

Below is the given values:

Initial cost = $2.2 billion

Yearly cash inflow, A = $300 million

Time = 15 years

Salvage value, S = $900

Project NPV at 5% discount rate = A (P/A, 5%, 15) + S (P/F, 5%, 15) - Initial cost

Project NPV at 5% discount rate = 300 (P/A, 5%, 15) + 900 (P/F, 5%, 15) - $2.2 billion

Project NPV at 5% discount rate = 300 (10.3796) + 900 (0.4810) - $2.2 billion or 2200 million

Project NPV at 5% discount rate = $1346 .78

Now,

Project NPV at 18% discount rate = 300 (5.0915) + 900 (0.0835) - $2.2 billion or 2200 million

Project NPV at 18% discount rate = -597.4

4 0

3 years ago