Answer:
Price changes are independent but not biased in efficient market hypothesis.
Explanation:
In simple words, the efficient-market hypothesis asserts that asset prices represent all relevant knowledge. Because market rates must only respond to fresh knowledge it is difficult to continuously "beat the market" on something like a risk-adjusted approach.
Thus the given statement is partially true.
Answer:
Return on investment = 18.07% (Approx.)
Explanation:
Given:
NUmber of share = 75 shares at $19.58 per share
Amount of dividend received = $73.42
Stock value at end = $22.14 per share
Find:
Return on investment
Computation:
Purchase price = 75 x 19.58
Purchase price = $1,468.5
Final value + Dividend = 75(22.14) + 73.42
Final value + Dividend = $1,733.92
Profit = $1,733.92 - $1,468.5
Profit = $265.42
Return on investment = [Profit / Initial value]100
Return on investment = [265.42 / 1,468.5]100
Return on investment = 18.07% (Approx.)
Answer:
Full cost is a pricing strategies which is most likely to lead to long-term financial sustainability
Explanation:
Full cost: It includes all types of cost which includes fixed cost, the variable cost which is used to compute the total cost per unit . where, fixed cost is that cost which remains same if production level also increases and, the variable cost is that cost which is changes when production level changes.
Marginal cost: It is the cost that is added when extra goods and services are produced.
Direct cost: It is that cost which is directly related to the production level. Example: direct material, direct labor, etc.
Indirect cost: It is that cost which is not related to the production level Example: Overhead cost, security cost, etc.
Variable cost: It is that cost which is changes when production level changes whether increase or decrease.
All other costs other than full cost is not used for long term financial sustainability because full cost includes all types of cost.
Hence, Full cost is a pricing strategies which is most likely to lead to long-term financial sustainability
Answer:
Explanation:
AAA AEP
Beginning balance, 1/1/20 200,000 110,000
Less: Distributions (140,000) (0)
Less: Loss (ordinary) (120,000) (0)
Ending Balance (60,000) 110,000
Here AAA is adjusted first for the distributions and then for the loss. The negative balance must be restored to a positive before the shareholders may receive any distributions that will not be taxed as dividend income.
