Answer:
True
Explanation:
For a stock to be in equilibrium, two conditions are necessary:
(1) The stock's market price must equal its intrinsic value as seen by the marginal investor;
(2) the expected return as seen by the marginal investor must equal his or her required return.
Answer:
Option (D) $27,000
Explanation:
Data provided in the question:
Cash dividends declared = $20,000
Dividends paid = $15,000
Net income = $70,000
Market value of the stock dividend = $23,000
Treasury stock = $9,000
Selling cost of the treasury stock = $7,000
Now,
Retained earnings increase during the recent year of operation will be
= Net income - Cash dividends declared - Market value of the stock dividend
= $70,000 - $20,000 - $23,000
= $27,000
Hence,
Option (D) $27,000
Answer:
The person with Absolute advantage is the one that produces more of a good than the other.
<em><u>Dina </u></em><em>has an absolute advantage in the production of alfalfa, and </em><em><u>Charles</u></em><em> has an absolute advantage in the production of barley. </em>
The person with Comparative Advantage is the person who produces something at a lower opportunity cost.
Charles Opportunity Costs
Producing Alfalfa gives 12 bushels per acre instead of 6 bushels for Barley.
Producing 1 Alfalfa means 6/12 = 0.5 bushels Barley is given up
Producing 1 bushel of Barley means 12/6 = 2 bushels Alfalfa is given up.
Dina Opportunity Costs
Producing Alfalfa gives 15 bushels per acre instead of 5 bushels for Barley.
Producing 1 Alfalfa means 5/15 = 0.33 bushels of Barley is given up
Producing 1 bushel of Barley means 15/5 = 3 bushels of Alfalfa is given up.
<em>Charles's opportunity cost of producing 1 bushel of barley is </em><em><u>2</u></em><em> bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of barley is </em><em><u>3</u></em><em> bushels of alfalfa. Because Charles has </em><em><u>lower</u></em><em> a opportunity cost of producing barley than Dina, </em><em><u>Charlie</u></em><em> has a comparative advantage in the production of barley, and </em><em><u>Dina</u></em><em> has a comparative advantage in the production of alfalfa.</em>
Answer:
oversight.
Explanation:
Oversight can be defined as an unintentional failure to notice a mistake or error, or an unintentional failure to act upon an event caused by an error.
Both the FED and the SEC should have noticed that the financial system was in a really bad shape way before Bear Stearns and Lehman Brothers collapsed, or AIG (and others) needed a huge bailout. Apparently both the FED and SEC were all too optimistic about the market and their optimism blinded them. As always the consequences of negligent public servants were paid mostly by the average taxpayer.
Answer:
Product audit.
Explanation:
Product audit is defined as an evaluation of a finished product to see if it's use meets the intent or purpose of the product.
It involves a thorough check on the product to ensure it serves its purpose before it is release and supplied to the customer.
Product audit takes place after manufacturing is complete, if the product does not meet specified standards the auditor logs a non conformance. The products are usually repaired. If this is not possible the product is discarded.
