Answer:
German companies do not recognize the profit <u>until the project is completely finished and they have been paid.</u>
Explanation:
German companies prepare their accounting balances under IFRS standards (common for all EU member countries) and German GAAP.
Under IFRS standards, revenue must be recognized when the business satisfies a performance obligation.
German GAAP is very prudent in determining profits, that is why they are only recognized once a project is completely finished and it has been completely paid.
Some specific German rules are to starting to change due to globalization, but others are still subject to legal requirements.
Answer:
the amount of earnings retained by the firm does not affect market price or the P/E
Explanation:
A rate of return refers to the net gain or loss of an investment over a particular time period which is typically a year. It is expressed as a percentage of the investment's initial cost.
The rate of return is referred to as the annual return if the time period is typically a year.
If a firm has a required rate of return equal to the ROE, <u>the amount of earnings retained by the firm does not affect market price or the P/E</u>
Answer:
number of periods = 8 years.
Explanation:
We know,
Future Value = Present value × 
Here,
Present value = PV = $2,500
Future value = FV = $3,500
Interest rate (Compounding) = 5% = 0.05
We have to determine how many years (Periods) it will take, n = ?
Putting the values into the above formula,
$3,500 = $2,500 × 
or, = $3,500 ÷ $2,500
or, n log 1.05 = 1.4
or, n × 0.17609 = 1.4
or, n = 1.4 ÷ 0.17609
Therefore, number of years = 7.95 or 8 years.
Answer:
$3,860
Explanation:
<u>Value of stock at the end of Firm T:</u>
Firm T has stock of 20 tires at the end of the year
The cost price is $28 per tire
Value = Closing stock * Cost price of each tIres
Value = 20 * $28
Value = $560
<u />
<u>Value of stock at the end of Firm B:</u>
Firm B has stock of 10 bicycles at the end of the year
The cost price is $330 each
Value = Closing stock * Cost price of each bicycle
Value = 10 * $330
Value = $3,300
Value of the inventory investment = Value of stock at the end of Firm T + Value of stock at the end of Firm B
Value of the inventory investment = $560 + $3,300
Value of the inventory investment = $3,860
