Refer to the given data. a $2 billion increase in consumption at each level of di could be caused by:

If it proves possible to make abnormal profits based on information regarding past stock prices, then the market:___________

Alla [95]

Answer:

a. is weak-form efficient

Explanation:

A weak-form efficient market postulates that the present price of a stock reflects previous all data from past prices.

It suggests that no technical analysis can be of help to the investor.

This implies that fundamental analysis using historical prices and data of a stock can be used to predict stocks that are overpriced or underpriced.

So researching a company's financial statements gives an edge on predicting today's stock price.

Investors can make abnormal profit

4 0

3 years ago

Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change

Valentin [98]

Answer:

Cost of equity = 10.9%

Explanation:

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

D0× (1+g)/Po × (1-F) + g

Do - dividend in the following year, K- requited rate of return , g- growth rate , F= Floatation cost in %

DATA:

D0- 3.68

g- 5%

P=67

K- ?

Po×(1-F)= 67-3.68=$63.32

Ke = 3.68× 1.05/ 63.32 + 0.05 =0.109

Cost of equity = 0.109× 100= 10.9%

Cost of equity = 10.9%

7 0

3 years ago

Rites and rituals are ____. for example, employees of new belgium brewery in fort collins, colorado, get a free brewery-hopping

3241004551 [841]

The rites and rituals are considered to be ceremonies and activities in which should be placed on the space provided because they are use for occasions in a way of celebrating a specific group or organization that has set an example above.

3 0

3 years ago

Allegheny Company ended 2015 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $23,000 and $900, respe

solniwko [45]

Answer:

Allegheny should report as $2,200 as Uncollectible Accounts Expense on its 2016 income statement.

Explanation:

Allegheny determines its bad debt expense by aging its receivables.

The write-off during 2016 would have this effect:

Debit Allowance for doubtful accounts $1,500

Credit Accounts receivable $1,500

(To record write-off during 2016)

The balance in the allowance for doubtful accounts would be $900 - $1,500 = $600 Debit

To reinstate the Allowance account to the estimated amount of $1,600, we need to add back the debit balance to arrive at $1,600 + $600 = $2,200.

The net realizable value of the Accounts receivable becomes: $23,000 - $1,500 - $1,600 = $19,900

6 0

3 years ago

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has bee

olga2289 [7]

Answer:

Mercer Asbestos should define the Cost Drivers first before introducing the Activity Based Costing System, cost drivers actually help the compnay to measure the cost per unit based on the contribution / impact of eac activity that had direct relation with the cost.

Explanation:

Estimator should define the cost drivers such as labor, factory overhead indicators and which has impact on the performance activity of both routine and non routine works.

Possible cost drivers for the below activities can be;

Removal of asbestos insulation around heating pipes in older homes. Likely cost drivers can be ( Direct Labor Hours Involved in the activity, Other indirect manpower hours dedicated for the activity)
Removal of asbestos-contaminated ceiling plaster in industrial buildings. Likely cost drivers can be ( Total covered area where contaminated ceiling plaster is present, Supervisors and other manpower involved in the activity).

Once the drivers have been defined cost/unit based on ABC system will help the decision makers such as Cost Planners to quote the accurate selling price to cover the profit margin.

5 0

3 years ago