Diversification will normally reduce the riskiness of a portfolio of stocks. True or False

Cash equivalents are securities that a.have maturity dates of 3 months or less. b.have maturity dates of at least 6 months. c.ma

Ahat [919]

Answer:

a. have maturity dates of 3 months or less

Explanation:

Cash equivalents refer to those short term highly liquid security investments such as marketable securities like commercial papers which can be converted into cash within 90 days or 3 months.

Cash equivalents are characterized by their maturity period being 3 months or lesser.

Commercial papers and certificate of deposits maturing in less than 3 months constitute cash equivalents.

Two major characteristics of cash equivalents being, their maturity period being 3 months or lesser and their maturity value is not subject to fluctuations i.e it is known in advance.

3 0

3 years ago

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n):_

zimovet [89]

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n): <u>expert forecasting survey.</u>

A survey is a survey method that collects data from a predefined group of respondents to provide information and insights on a variety of topics of interest. They have multiple purposes, and researchers can implement them in different ways, depending on the methodology chosen and the purpose of the study.

Surveys are used to collect or generate insights in areas such as social surveys and demographics. Research studies are often used to assess thoughts, opinions, and emotions. The survey can be specific and limited, or it can set more global and broader goals. types of surveys and their usage. Most studies fall into three different categories: exploratory, descriptive, and causal. In the world of online research, mastering all three will give you more informed insights and higher quality information.

Learn more about Surveys here: brainly.com/question/4300488

#SPJ4

3 0

2 years ago

Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 milli

AVprozaik [17]

Answer:

Schweser Satellites Inc.

The incremental profit is:

= $845,000

Explanation:

a) Data and Calculations:

Selling price of Satellite Earth Station = $95,000 each

Total sales revenue = $4,750,000 ($95,000 * 50)

Fixed costs, F = $2.5 million

Annual production and sales units = 50 units

Total profits = $500,000

Total contribution = $3 million ($2.5 m + $500,000)

Variable costs = $1,750,000 ($4,750,000 - $3,00,000)

Variable cost per unit = $35,000 ($1,750,000/50)

Assets = $4 million

Equity = $4 million

Additional assets = 4.5 million

Additional fixed operating costs = $380,000

New assets = 8.5 million

Fixed operating costs = $2.88 million

Variable cost reduction per unit = $12,000

New variable cost per unit = $23,000 ($35,000 - $12,000)

Production and sales units = 65 (50 + 15)

New selling price per unit = $88,000

Cost of equity = 16%

Tax rate = 0%

Profit under new arrangements:

Contribution per unit = $65,000 ($88,000 - $23,000)

Total contribution margin = $4,225,000 ($65,000 * 65)

Fixed operating costs = $2,880,000

Net operating profit $1,345,000

Incremental profit = $845,000 ($1,345,000 - $500,000)

4 0

3 years ago

Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable

Evgen [1.6K]

Answer:

Explanation:

Given that :

Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000.

Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation, and

In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.

The objective is to prepare a memo for the tax research file describing the tax consequences of the stock sale.

From the tax research file:

The gain on the sale of the 2,000 shares is calculated by the difference from the sales price and the shares sold.

I.e $24000 - $18000 = $6000

The tax rate on the $2000 = Purchase price of the shares/ (Original shares bought + new shares)

The tax rate on the 2000 shares = $24000/($10000+$2000)

The tax rate on the 2000 shares= $24000/$12000

The tax rate on the 2000 shares= $2 / shares

The Gain in the share = selling price - tax basis in the 2,000 new shares

The Gain in the share = $18000 - $4000

The Gain in the share = $14000

∴

This is the long capital gain i.e $14000

The memo in summary goes thus:

The amount of $24000 is being paid by you for 10000 shares of stock in Grebe Corporation in which a stock dividend of 2000 was received. However, the share is sold for $18000, the tax basis is deduced by dividing $24000 purchasing price by $12000(original price + new shares price) which resulted into a $2/ shares. The $14,000 gain on the sale is a long-term capital gain. The gain on the sale is long term because the original Grebe stock has been held for more than one year.

5 0

3 years ago

A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warra

Murrr4er [49]

Answer:

Report a prior period adjustment decreasing retained earnings by $1,365,000.

Explanation:

Going by the question we can derive that $2,100,000 is the prior period's warranty. Consequently, it will be charged to the current year's earnings following the deduction of tax, 35%.

(2,100,000 *65) /100 = $1,365,000

This above calculation is so because Under the accrual basis of accounting...operating expense are reported on the income statement in the particular period when they took place or when they expire

4 0

3 years ago

Read 2 more answers