Answer:
Management of a company is responsible for integrity and objectivity of financial statements. It is management's responsibility to comply with all applicable accounting standards while preparing financial statements.
Explanation:
There should be strict internal controls in a company. A company management is responsible to comply with all laws, and prepare financial standards free from errors. There should be no window dressing and information presented should be reliable. A company management is also responsible to maintain effective internal control system.
Answer:
r = 0.235 or 23.5%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
r = 0.06 + 2.5 * 0.07
r = 0.235 or 23.5%
Answer:
Total FV= $6,765.82
Explanation:
Giving the following information:
Year Cash Flow 1 $ 1,070 2 1,300 3 1,520 4 2,260
Discount rate= 8%
<u>To calculate the total future value, we need to use the following formula on each cash flow:</u>
FV= Cf*(1 + i)^n
FV1= 1,070*(1.08^3)= 1,347.9
FV2= 1,300*(1.08^2)= 1,516.32
FV3= 1,520*1.08= 1,641.6
FV4= 2,260
Total FV= $6,765.82
At least 20% should go to ur savongs
