Answer:
The answer is: Stock markets reflect all available information about the value of stocks
Explanation:
Efficient market hypothesis (EMH) is an investment theory about stock markets where the price of stocks is always the fair market value of the stocks. It argues that it is impossible for someone to determine when stocks are either undervalued or overvalued. So all the technical and fundamental analysis techniques are useless.
Answer:
New irr = 8.03%(Approx)
Project should be rejected
Explanation:
Given:
Initial value = $148,400
Cash flows;
$42,500
$87,300
$43,200
Internal rate of return = 11%
Computation:
present value = Present value of outflows
148,400 = 42,500/(1+x) + 87,300/(1+x)² + 43,200/(1+x)³
So,
New irr = 8.03%(Approx)
New irr < Internal rate of return
So,
Project should be rejected
Answer:
1)Weakness:
Cashiers are not bonded and background checks are not conducted
Principle Violated:
Human resource Controls
2)Weakness:
Inability to establish responsibility for cash on a specific clerk
Principle Violated :
Establishment of responsibility
3)Weakness:
Cash is not adequately protected from theft
Principle Violated :
Physical Controls
4)Weakness:
Cash is not independently counted
Principle Violated :
Independent internal verification
5)Weakness:
The accountant should not handle cash
Principle Violated :
Segregation of duties
Answer:
$232,825
Explanation:
Step 1: Calculation of cost of goods sold (COGS) under First In First Out (FIFO)
Since we know that;
Ending inventory = Beginning inventory + Purchase - COGS of FIFO
Therefore, we can rearrange to make COGS the subject of the formula and substitute the values as follows:
COGS under FIFO = Beginning inventory + Purchase - Ending inventory
= $110,000 + $237,500 - $114,000 =
COGS under FIFO = $233,500
Step 2: Calculation of COGS under Last In First Out (LIFO)
COGS under LIFO = COGS under FIFO - Rise in LIFO reserve
= $233,500 - $675
COGS under LIFO = $232,825
Therefore, the value of COGS LIFO for Brady Inc. in 2018 is $232,825.
Answer:
The correct answer is letter "E": Short-term debt securities such as Treasury bills and commercial paper.
Explanation:
Money markets are liquid investments that are well-suited for small investors. Usually, they invest in stable securities, such as Treasury Bills and Commercial Papers. Treasury and Commercial Paper Funds are short-term assets that last less than one (1) year or 270 days, respectively.
Most money market funds currently offer the option of selling the fund for a greater profit than if the money stayed in the account until the end of the term.