20. Which one of the following statements about national income is correct?

The CEO of Fly Corporation decides to change an accounting method at the end of the current year. The change results in reported

Angelina_Jolie [31]

Answer:

Fly Corporation

The stock price will not be affected by the accounting change.

Explanation:

This opinion is based on the assumption that the capital markets are efficient. Therefore, the stock's market price will reflect all available and relevant information. Since all the necessary information is already incorporated into the stock price, the CEO of Fly Corporation cannot beat the market by the change in accounting method, and the stock price will not be undervalued or overvalued. Moreover, the change in accounting method only shifts the timing for reporting income.

3 0

3 years ago

The federal reserve system can do all of the following except:_______

Nana76 [90]

The Federal Reserve System can do all the given options except A. lender of last resort for consumers.

<h3>What does the federal reserve system do?</h3>

The federal reserve system of the United States is the central bank of the nation and as such, they engage in services like check clearing and regulating the money supply.

They also act as a lender of last resort to banks in order to ensure that they don't fail. The Fed does not lend money to consumers directly so this is not one of their roles.

Options for this question:

A. lender of last resort for consumers
B. regulation of the money supply
C. supplying currency
D. check clearing

Find out more on the roles of the Federal Reserve at brainly.com/question/14417722

#SPJ1

4 0

1 year ago

Suppose that three firms make up the entire tire manufacturing industry. One has a 40% market share, and the other two have a 30

masha68 [24]

Answer:

3400

increase

Explanation:

the Herfindahl index is used to calculate the concentration of firms in an industry

The HHI is calculated by squaring the market share of each firm in the industry.

40² + 30² + 30² = 3400

If one of the firms leaves the industry, the industry becomes more concentrated and the HHI index would increase

5 0

3 years ago

Sunland Company is considering two capital investment proposals. Estimates regarding each project are provided below. Project So

san4es73 [151]

Answer:

a. 4 years and 4.22 years

b. -$31,350 and $27,615

c. Project Nuts

Explanation:

a. The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

For project soup, it would be

= $600,000 ÷ $150,000

= 4 years

For project nuts, it would be

= $900,000 ÷ $213,000

= 4.22 years

b. The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

For project soup, it would be

= $568,650 - $600,000

= -$31,350

The present value is computed below:

= Annual cash flow × pvifa for 5 years at 10%

= $150,000 × 3.791

= $568,650

For project nuts, it would be

= $927,615 - $900,000

= $27,615

The present value is computed below:

= Annual cash flow × pvifa for 6 years at 10%

= $213,000 × 4.355

= $927,615

Kindly refer pvifa table

c. The project Nuts should be accepted as it has positive net present value.

7 0

3 years ago

Amy, Jan, and Beth have decided to combine

sladkih [1.3K]

Answer:

C. shared resources.

Explanation:

A partnership is a form of business ownership. Partners contribute funds and their expertise towards the success of their business. They are able to put together a large sum of capital than they would raise as individuals. A partnership is formed and managed through the combined efforts of the partners.

A sole proprietor is a one-person venture. The owner sources for the capital and makes all business decisions by themselves. Unlike in sole proprietorship, a partnership has the advantage of shared resources and responsibilities. Partners can brainstorm and share ideas on how to improve the performance of their business.

4 0

3 years ago