Answer:
Check the explanation
Explanation:
Efficient market theory states that the security price reflects all the available information of the market. It means there is no reason to believe that prices are incorrect.
Thus, the given statement is false.
The past data is not useful for decision making. Information of past trends may not help the investor to earn abnormal returns.
The statement is consistent with weak form efficiency as current price reflects the past price movements.
Thus, the statement belongs to weak form efficiency.
The stock price will increase and settle at a new equilibrium level.
Answer: enables marketers to tailor marketing mixes to meet the needs of particular population segments
Explanation:
Market segmentation enables marketers to tailor marketing mixes to meet the needs of particular population segments. Segmentation helps marketers identify consumer needs and preferences, areas of declining demand, and new marketing opportunities. the marketing strategy of almost all successful organizations.
Answer:
The correct answer to the problem is 7.728%
Explanation:
Lucas marginal tax rate = 32 percent
Tax rate on dividends = 16 percent
Dividend yield of a dividend-paying stock (with no growth potential) = 9.20 percent.
To determine the interest rate a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash flow perspective =
Dividend yield multiplied by ( 1- tax rate on dividends)
= 9.20% × (1 - 16%)
= 0.092 × (1 - 0.16)
= 0.092 × 0.84
= 7.728%
Advertising sales agents typically work under the direct supervision of a manager or supervisor. True.
Initally, an advertising sales agent works under the direct supervision of a manager or supervisor. They are trained and coached by those who are experienced in the field. Once the sales agent has completed a set amount of hours (based on different agency requirements) they are no longer required to complete check-ins as often. These sales agents are then on their own most of the time by setting their own hours for work as long as they meet company goals.
Answer: Please see the required journals below:
December 31:
Debit Bad debt expense $6,034
Credit Allowance for doubtful accounts $6,034
February 1:
Debit Allowance for doubtful accounts $431
Credit Accounts receivables $431
June 5:
Debit Cash $431
Credit Bad debt recovery (income statement) $431
Explanation: The company estimates its bad debt expense as percentage of sales. In this case 0.7% of its annual sales of $862,000 was deemed as uncollectible, that is, 0.7% x $862,000 = $6,034. The required journals to recognize this bad debt expense is provided above. However, since there was an existing provision, which resides in the allowance account, a write-off would definitely hit that account in order to extinguish the accounts receivable portion. Upon recovery of the write-off, we cannot reinstate the receivable since it was already extinguished but we need to recognize the recovery as a gain.
