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3 years ago

A stress test in finical marketing means:_____.

Business

1 answer:

Brilliant_brown [7]3 years ago

8 0

Answer:

Explanation:

Stress tests are carried out to determine how financial systems would react in periods of extreme stress eg. financial or economic crisis.

Stress situations are simulated and the reaction of the financial system to the stress is measured. Based on the reactions of the financial system, steps are taken to further improve or strengthen the financial system.

The scenarios used in a stress test can be based on historical events (events that have already occurred) or hypothetical events.

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The interest rates for treasury notes are greater than for T-bills because of the longer maturity dates. A. True B. False

Brrunno [24]

Answer: true

Explanation:

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3 years ago

Williamsburg Market is an all-equity firm that has net income of $96,200, depreciation expense of $6,300, and an increase in net

sladkih [1.3K]

Answer:

The answer is $99700

Explanation:

Net cash from operating activity= Net income + Depreciation - increase in net working capital.

Net cash from operating activity= $96,200 + $6,300 - $2,800= $99700

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3 years ago

McConnell Corporation has bonds on the market with 12.5 years to maturity, a YTM of 7.3 percent, a par value of $1,000, and a cu

Alex777 [14]

Answer:

Coupon rate will be 3.08%

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3 years ago

McElroy, Inc., produces a single model of a popular cell phone in large quantities. A single cell phone moves through two depart

Tema [17]

Answer:

Part a.

Equivalent units : Materials = 30,000 units ,Conversion Costs = 28,000 units

Cost per equivalent unit : Materials = $6.25 Conversion Costs = $5.85

Part b.

$314,600

Part c.

$36,700

Explanation:

Step 1 : Equivalent units

<u>Materials</u>

Units Completed and Transferred (26,000 x 100 %) 26,000

Units in Ending Work in Process (4,000 x 100%) 4,000

Equivalent units with respect to Materials 30,000

<u>Conversion Costs</u>

Units Completed and Transferred (26,000 x 100 %) 26,000

Units in Ending Work in Process (4,000 x 50%) 2,000

Equivalent units with respect to Materials 28,000

Step 2 : Cost per equivalent unit

Materials = $187,500 ÷ 30,000 = $6.25

Conversion Costs = $163,800 ÷ 28,000 = $5.85

Total unit cost = $6.25 + $5.85 = $12.10

Step 3 : Costs of units completed and transferred to the testing department

Costs of units completed and transferred = 26,000 x $12.10 = $314,600

Step 4 : Costs of the ending work-in-process

Costs of the ending work-in-process = 4,000 x $6.25 + 2,000 x $5.85 = $36,700

5 0

3 years ago

E24-26 Determining transfer pricing The Watkins Company is decentralized, and divisions are considered investment centers. Watki

Stells [14]

Answer:

Part 1.

The negotiable range for the transfer price is between is $6 to $18 as the Netting division will incur loss if it sells its product below its variable cost whereas the maximum price it can transfer the product to Basketball equipment department is equal to the selling price that is $18.

Therefore, negotiable range is between for the transfer price is $6 to $18.

Part 2.

The minimum transfer price the Netting division should consider if at operating capacity is $18.

If they are at below capacity, the minimum transfer price would be $6.

Part 3.

The maximum transfer price the basketball equipment division should consider must be equal to the price outside vendors are charging for the same quality product that is $15.

Therefore, the maximum transfer price the Basketball Equipment Division should consider is $15.

6 0

3 years ago