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3 years ago

According to the liquidity premium theory of interest rates,

Business

1 answer:

Andrew [12]3 years ago

4 0

Answer:

C. long-term spot rates are higher than the average of current and expected future short-term rates

Explanation:

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Horseshoe Stables is losing significant market share and thus its managers have decided to decrease the firm's annual dividend.

Naya [18.7K]

Answer:

$3.90

Explanation:

using the discount model we can calculate the stock price:

stock price = [dividend x (1 - g)] / (RRR + g) ⇒ since the growth rate is negative, we need to change additions for subtractions and vice versa.

stock price = [$0.86 x (1 - 3.5%)] / (17.8% + 3.5%) = ($0.86 x 0.965) / 0.213 = $0.8299 / 0.213 = $3.90

4 0

3 years ago

explain the roles of directors of the company and the roles of auditors using the categories provided explain in three points ex

Fed [463]

Answer:

directors are the trustees of the company's money and property, and also act as agents in the transaction which they enter into on behalf of the company. Directors are liable as trustees for breach of trust, if they misapplied the funds or committed breach of byelaws of the company.

An auditor is an authorised personnel that reviews and verifies the accuracy of financial records and ensures that companies comply with tax norms. They primarily objective is to protect businesses from fraud, highlight any discrepancies in accounting methods, among other things.

4 0

2 years ago

Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Ma

Molodets [167]

Answer:

Moskowitz Corporation

The net operating income (loss) under variable costing in Year 2 is closest to:

= $56,000.

Explanation:

a) Data and Calculations:

Selling price per unit $ 91

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials $ 13

Direct labor $ 7

Variable manufacturing overhead $ 3 23

Contribution per unit $ 68

Fixed manufacturing overhead per year $480,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 6

Fixed selling and administrative expense per year $ 84,000

Year 1 Year 2

Units in beginning inventory 0 3,000

Units produced during the year 12,000 10,000

Units sold during the year 9,000 10,000

Units in ending inventory 3,000 3,000

Year 2:

Income Statement:

Sales Revenue ($91 * 10,000) = $910,000

Variable manufacturing costs 230,000 ($23 * 10,000)

Variable selling and admin. 60,000 ($6 * 10,000)

Contribution margin $620,000

Fixed manufacturing costs 480,000

Fixed selling and admin. costs 84,000

Net operating income (loss) $ 56,000

8 0

2 years ago

Which statement is correct?

Allisa [31]

Answer: (C) The production of non durable consumer goods is more stable than the production of durable consumer goods over the business cycle.

Explanation:

The consumer durability of the goods has the significant life span and the production of the non durable goods of the consumer are basically purchased for the immediate consumption over the business cycle so that is why it is more stable as compared to the production of the durable goods.

The example of the durable consumer goods are smartphones, furniture and the other household appliances. On the other hand, the non durable consumer goods are more stable as it contain daily use material like food, clothes and beverages.

4 0

3 years ago

The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in t

Darya [45]

Answer:

c. make an accurate diagnosis of what is causing the problem

Explanation:

The manager of the fast-food restaurant should understand the underlying problem first. Working on the assumption that it's because of a competitor marketing campaign may not give the desired results. A customer's preference may change due to many reasons.

The manager should make an accurate diagnosis of the problem first. With a precise reason as to why customers as fleeing, then he can develop a counter-strategy. Retaining the current member of the crew will not reverse the situation. Reducing prices may affect profitability, which is not the desired result. With low prices, some customers may question the quality of the breakfast.

7 0

3 years ago