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Burka [1]
3 years ago
10

The CEO of Fly Corporation decides to change an accounting method at the end of the current year. The change results in reported

profits increasing by 5%, but the company's cash flows are not changed. If capital markets are efficient, then what would happen to the company stock price? Justify your answer with logical arguments
Business
1 answer:
Angelina_Jolie [31]3 years ago
3 0

Answer:

Fly Corporation

The stock price will not be affected by the accounting change.

Explanation:

This opinion is based on the assumption that the capital markets are efficient.  Therefore, the stock's market price will reflect all available and relevant information.  Since all the necessary information is already incorporated into the stock price, the CEO of Fly Corporation cannot beat the market by the change in accounting method, and the stock price will not be undervalued or overvalued.  Moreover, the change in accounting method only shifts the timing for reporting income.

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Assume you are the internal controls expert for your company. Your boss has read about Madoff’s Ponzi scheme described in a page
kiruha [24]

Answer:

There are numerous estimates an organization can embrace to elevate the guidelines of inside controls, anyway not many of those are counted as under -  

1. Due Diligence - nearly everybody would propose it yet the usage contrasts from organization to organization. The term incorporates wide exercises for example from improving nature of inner review to upkeeping of money related records and so on. Keeping a mind existing and old venture example would positively help in examining the reaction of speculations according to winning economic situation. Disservices of the procedure incorporate involvement of extra labor and cost.  

2. Picking right Investment firms as well as Fund Manager - In the intricate business showcase which wins today, seeing the correct person appears as a troublesome activity. It is significant that we cautiously study not just the speculation designs and ensuing returns of the Investment firms/Fund Manager yet in addition foundation, capabilities and past legitimate records to show up at appropriate person for reasonable occupation. At times we pick a distrustful yet a fair person, which may prompt penance in momentary gains yet particularly in retirement assets with long haul objectives, security of assets accept need.  

3. Choosing the money related items - Today there are various budgetary items accessible in the market, a significant number of them offer extravagant returns however the objectives of such monetary items must be re-adjusted to the objectives of the organization and its representatives. For the organization a nice return over since a long time ago run with high level of security is the target with regards to retirement reserves. The budgetary item should have a suitable blend of obligation, value and fluid assets and especially the part of obligation must increment with the age of a worker which will guarantee security of assets when he achieves superannuation. Drawback significantly remembers loss of profits because of less speculation for value during the last phases of vocation.

3 0
3 years ago
A linear production possibilities curve indicates which of the following?
lilavasa [31]

Answer:

I think ur answers are A, B, and C.

Explanation:

Hope this helps!

6 0
2 years ago
Demonstrate how workplace discrimination undermines organizational effectiveness.
snow_lady [41]

Answer:

Workplace discrimination prevents the firm from using the full potential of those employees that are being discriminated against.

Explanation:

For example, if the firm discriminates against a specific group of people when hiring (for example, it can discriminate against older people), the firm could lose valuable potential employees that could have provided great skill and experience for the firm.

If the firm practices discrimination against employees, the operation in the company will not be as streamlined as it could be against discrimination because those who are being treated poorly will be less motivated and have lesser output.

6 0
3 years ago
A manufacturing operations consists of 13 operations. However, five of the 13 machining operations must be completed before any
user100 [1]

Answer:

4,838,400

Explanation:

Assume there are already Two sets of machine working.

In the first set, there is 5 machine Operates and in another set, There are 8 machines (13-5) operates.

So Total Production sequence = First sets all combinations  x Second sets all combination

= 5! x 8!

= ( 5 x 4 x 3 x 2 x 1 ) x ( 8 x 7 x 6 x 5 x 4 x 3 x 2 x 1 )

= 120 x 40,320

= 4,838,400

So , total number of machine combination is 4,838,400.

6 0
3 years ago
Excluding discouraged workers from the official unemployment rate may cause the official rate to the true extent of underemploym
Alenkasestr [34]

Excluding discouraged workers from the official unemployment rate may cause the official rate to Understate the true extent of underemployment.

What happens when they are reclassified as discouraged workers?

  • The measured unemployment rate will decrease if unemployed people give up.
  • When this occurs, the measured unemployment rate will momentarily increase. They will once more be listed as unemployed, which is why.
  • Because there are no discouraged employees in the labor market actively looking for a job, the labor force participation rate would fall if employed people were reclassified as discouraged workers.

(1) official unemployment rate= unemployed/(employed + unemployed)

= 6197000 / 155604000 + 6197000 * 100

= 3.83%

(2) U-4 unemployment rate= (unemployed +discouraged) /(employed +unemployed+ discouraged)

=6197000+ 434000 / 155604000+ 6197000 + 434000 * 100

= 4.09%

Excluding discouraged workers from the official unemployment rate may cause the official rate to Understate the true extent of underemployment.

To learn more about the unemployed, refer to:

brainly.com/question/3876987

#SPJ4

8 0
1 year ago
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