Answer:
The primary difference between product markets and factor markets is that:
Product markets are markets related to products, goods, tangible finished items. This is where you'll get your product for sale and where people will buy it.
while
Factor markets are for the factors of production, mostly intangible, like labor, capital and entrepreneurial skills. This is what you'll use (including raw materials) to make your product.
Answer:
Concurrent control
Explanation:
Concurrent control which is also known as preventive controls are ongoing controls that help to maintain quality and consistency. It usually involves the monitoring of employees that are directly involved with customers or the manufacturing process.
Concurrent control involves identifying and preventing problems as they take place in an organization.
Answer:
The account and amount(s) related to Kennedy Co.'s pension plan that will be reported on the company’s statement of financial position are pension liability and $90,00 respectively.
Explanation:
The difference between defined benefit obligation and fair value of plan assets is recorded on a balance sheet.
Defined benefit obligation is $335,000 which is higher than the fair value of plan assets of $245,000. Hence, the net result is pension liability.
Pension liability = defined benefit obligation - fair value of plan assets = $335,000 - $245,000 = $90,000.
The account and amount(s) related to Kennedy Co.'s pension plan that will be reported on the company’s statement of financial position are pension liability and $90,00 respectively.
Actuarial gain is part of pension expense. Vested benefits amount is recorded in the notes to account.
Answer:
1.2904
Explanation:
S + P = C + X/(1+r)^n
S = ?, P = Premium of put 0.02, C = Premium of call 0.06, X = Strike price (1.25), r = 4%, n = 1.25 (3/12)
S + 0.02 = 0.06 + 1.25/(1.04)^0.25
S = 0.06 + 1.2378 - 0.02
S = 1.2778
F = S(1+r)^n
F = 1.2778*(1.04)^(3/12)
F = 1.2778*1.009853
F = 1.2903901634
F = 1.2904
So, the 3 month ahead forward rate that is consistent with put call parity is 1.2904.
Answer:
the beta of the portfolio is 1.1375
Explanation:
The computation of the beta of the portfolio is as follows:
= Company beta × portfolio percentage
= 0.95 × 0.40 + 1.20 × 0.35 + 1.35 × 0.25
= 0.38 + 0.42 + 0.3375
= 1.1375
Hence the beta of the portfolio is 1.1375
We simply applied the above formula so that the correct beta could come