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FrozenT [24]
3 years ago
13

Fundamental analysis shows that Quadrangle Company is fairly valued. Then Quadrangle Company unexpectedly improves its productio

n techniques and unexpectedly hires a new CEO away from another very successful competitor. Suppose this has no effect on the price of the stock of Quadrangle Company.
a. Fundamental analysis would now show the corporation is overvalued. The fact that the price was unchanged is consistent with the efficient markets hypothesis.
Incorrect Response

b. Fundamental analysis would now show the corporation is overvalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.

c. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is consistent with the efficient markets hypothesis.

d. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.
Business
1 answer:
Anarel [89]3 years ago
4 0

Answer:

D. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.

Explanation:

Under factors of production, we have Land ,labour ,capital and entrepreneur.

Labour are the prime movers of a business.If a new CEO with a good track record has been employed, then the value of the company will increase.

Technically, that Quadrangle Company has increased its production(which might mean that the goods and services they deliver to their clients has increased or the mode of delivery of services has been improved upon), the value is also meant to increase.

With all these indices in place, fundamental analysis will now show that the corperation is undervalued. so D

Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis

perfectly fits the answer

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Nimfa-mama [501]

Answer:

a. Predetermined administration costs - $ 54 per engineering hours

b. Profit per Toot  - $ 648,075

   Profit per Tix       $ 326,450

Explanation:

Computation for predetermined overhead rate for admin costs

Estimated administration costs                                              $ 629,100

Engineering hours - Toot -  6,825

Engineering hours - Tix    -  <u>4,825</u>

Total engineering hours                                                              11,650

Predetermined rate for administration costs

$ 629,100/ 11,650 hours                                                       $ 54 per hour

Computation of total profit for each service

Administration costs - Toot = 6,825 hours * $ 54 per hour = $ 368,550

Administration costs - Tix =   4,825 hours * $ 54 per hour = $  260,550

                                                              Toot                Tix

                                                                 $                    $

Revenues                                            <u>1,350,000</u>       <u>1,040,000</u>

Engineering costs                                 333,375           453,000

Allocation of admin costs                     <u>368,550 </u>         <u>260,550</u>

Total costs                                              <u>701,925 </u>          <u>713,550</u>

Profit per service                                    648,075          326,450                          

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3 years ago
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3 years ago
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Answer:

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The customer would like some modifications made to product K19 that would increase the variable costs by $6.50 per unit and that would require a one-time investment of $46,300 in special molds that would have no salvage value.

<u>Because it is a special offer and there is unused capacity, we will take into account only the incremental fixed costs.</u>

<u></u>

First, we need to calculate the total cost of the offer:

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Finally, we can determine the effect on income:

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