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marishachu [46]
4 years ago
12

Because financial markets are ____, securities buyers and sellers do not have full access to information and cannot always break

down securities to the precise size they desire.
Business
2 answers:
Amiraneli [1.4K]4 years ago
7 0

<u>Full question:</u>

Because financial markets are ____, securities buyers and sellers do not have full access to information and cannot always break down securities to the precise size they desire.

a. efficient

b. inefficient

c. perfect

d. imperfect

<u>Answer:</u>

Because financial markets are imperfect, securities buyers and sellers do not have full access to information and cannot always break down securities to the precise size they desire.

<u>Explanation:</u>

An imperfect market is an entirety in which specific buyers and sellers can affect costs and production, where there is no complete revealing of information about goods and costs, and where there are huge obstacles to approach or exit in the business.

 Imperfect markets do not satisfy the precise measures of a possible absolutely or competing market. If financial businesses were perfect, all erudition about any protection for trade-in prime and subsequent businesses would be continuously and openly accessible to investors.

yarga [219]4 years ago
5 0

Because financial markets are <u>Imperfect</u>, securities buyers and sellers do not have full access to information and cannot always break down securities to the precise size they desire.

<u>Explanation:</u>

An imperfect market is a whole where individual buyers and sellers may influence prices and efficiency, where there is no full transparency of knowledge about products and costs, and where there are large barriers in the sector to enter or exit.

Imperfect markets may not follow the exact measurements of an actual or competitive possible market. If financial businesses were ideal, investors would be constantly and freely responsive to all erudition about any security for trade-in prime and corresponding businesses.

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SpyIntel [72]

Answer:

<u>Consider the following information</u>

Probability of ATR coming up with a competitive product is 0.35

If ATR does not come up with a competitive product and H adds an assembly line, the profit is $60,000

If it adds an assembly line and ATR adds the product, the profit is $20,000

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

<u>A) Expected value for the add assembly line option: </u>

The company would get a profit of $60,000 if ATR does not come up with a competitive product. If ATR comes up with a competitive product and H adds an assembly line, the profit is $20,000.

Probability of not coming up with a product is 0.65 (1-0.35)

Calculate the value if it does not come up with a new product line and H adds an assembly line as follows:

Value if it does not come up with a new product = 0.65 x $60,000

= $39,000

Calculate the value if it comes up with a new product line and H adds an assembly line as follows:

Value if it does come up with a new product = 0.35 x $20, 000  = $7,000

Calculate the expected value as follows:  

Expected value = S39000 + $7000

Expected value =$46,000

<u>Expected value for build new plant option: </u>

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

Calculate the value if H adds a new assembly but ATR does not come up with a competitive product as follows:

Value if it does not come up with a new product = 0.65 x $600000

= $390, 000

Calculate the value if ATR does not enter the market:

Value if it does not compete in market = 0.35 x -$120000  = -$42, 000

Calculate the expected value as follows:  

Expected value= $390,000 - $42,000

Expected value =$348,000

The expected value of building a plant is more than the expected value of adding product line. Therefore, the best alternative is to build the plant.

<u>B) Calculation of expected value of perfect information (EVPI): </u>

EVPI = 0.65 x $600,000 + 0.35 x $120,000

EVPI = $390,000 + $42,000

EVPI =$432,000

<u>Calculation of value of return: </u>

Value of return = Value of perfect information - Maximum EMV

Value of return =$432,000 - 348,000

Value of return =$84,000

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The new ASC Topic 606 for revenue recognition:
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Equipment was purchased for $68,000 on January 1, 2013. Freight charges amounted to $2,800 and there was a cost of $8,000 for bu
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Answer:

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Now the depreciation expense under the straight-line method is shown below:

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= $13,360

Now the accumulated depreciation is

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