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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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Weiss Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have
AysviL [449]

Answer:

The​ break-even point in dollars for the proposal by Vendor A​ $ 157,142.86

The​ break-even point in dollars for the proposal by Vendor B​ =​$ 140,000

Explanation:

Weiss Manufacturing

                                                 Proposal A          Proposal B

The fixed costs                          $ 55,000               $ 70,000

The variable cost                        $ 13.00                   $ 10.00

The revenue generated

By each unit is                           $ 20.00                     $ 20.00

The​ break-even point  for the proposal by Vendor A​= Fixed Costs/Sales Revenue- Variable Costs

Break Even Sales Volume in Dollars= Fixed Costs/ Contribution Margin Ratio

Break Even Sales Volume in Dollars= Fixed Costs/ 1- (variable Costs/ Sales)

The​ break-even point in dollars for the proposal by Vendor A​

                                   = 55,000/1- (13/20)= $ 55000/ 0.35= $ 157,142.86

The​ break-even point in dollars for the proposal by Vendor B​ =​

                                     = 70,000/ 1- ( 10/20) = 70,000/0.5= $ 140,000

7 0
3 years ago
Read 2 more answers
Prithi acquired and placed in service $190,000 of equipment on August 1, 2015, for use in her sole proprietorship. The equipment
il63 [147K]

Answer:

d.) $38,000

Explanation:

Given that

Acquired value of the plant = $190,000

Recovery period = 5 years

So according to section 179, the total deduction is limit to the 1 by 5 i.e useful life or recovery period of acquired price or purchase price

So, the amount is

= Acquired value of the plant ÷ recovery period

= $190,000 ÷ 5 years

= $38,000

By dividing the acquired value with the recovery period we can get the maximum deduction

4 0
3 years ago
On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had
harkovskaia [24]

The journal entry, to record the sale of the treasury shares on February 1, would include:

a) debit to a loss account for $112,500

b) credit to Treasury Stock for $90,000

c) credit to a gains account for $112,500

d) debit to Treasury Stock for $90,000

Answer:

Option D Debit to Treasury Stock for $90,000

Explanation:

The journal entry of repurchase of treasury stock is as under:

Dr Treasury Stock $90,000

Cr          Cash              $90,000

As the treasury stock has been purchased for cash, the cash has been decreased and the decrease in treasury stock is credit in nature. Hence the decrease in stock is shown as debit and decrease in cash is shown as credit.

The rate as which the stock is purchased is the price at which treasury stock will be debited = Treasury shares purchased × Fair Value per Share

= 3,750 shares × $24

= $90,000

5 0
3 years ago
A flexible-budget variance is $800 favorable for unit-related costs. This indicates that costs were: _____________
Galina-37 [17]

Answer: $800 less than standard for the achieved level of activity

Explanation:

A flexible budget variance refers to the difference that occurs between the results that are gotten by a flexible budget model and the actual results gotten.

Since the flexible-budget variance is $800 favorable for unit-related costs, this indicates that costs were $800 less than standard for the achieved level of activity.

Therefore, the correct option is D.

6 0
3 years ago
A company sells two models of a product—basic and premium. The basic model has a variable cost of $75 and sells for $100. The pr
Vesna [10]

Answer:

Beak-even point  =   450 units

                 

Explanation:

The break-even point is the level of activity where a business makes no profit or loss. At this level of activity, the total contribution equals the total  fixed costs.

To calculate the break even point in a multi product scenario, we use the formula below:

<em>Break-even point = Fixed cost for the period / average contribution per unit</em>

<em>Average contribution per unit = Total contribution in a mix/ units in a mix</em>

We will follow the steps below to work out the Break-even point:

Step 1

<em>Calculate the average contribution per unit</em>

<em>contribution per unit for each product= selling price - variable cost</em>

Basic model = 100- 75 = $25

Premium model =  150 - 100 = $50

<em>Average contribution per unit</em> =<u> ( 5000 × $25) + (2500 × $50)</u>

                                                            (   5000 + 2500) units

                                = $33.33 per unit

Step 2

<em>Calculate the Break-even point</em>

Break even point = $15,000/ $33.33

                           =   450 units

4 0
3 years ago
Read 2 more answers
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