Answer:
D. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.
Explanation:
Under factors of production, we have Land ,labour ,capital and entrepreneur.
Labour are the prime movers of a business.If a new CEO with a good track record has been employed, then the value of the company will increase.
Technically, that Quadrangle Company has increased its production(which might mean that the goods and services they deliver to their clients has increased or the mode of delivery of services has been improved upon), the value is also meant to increase.
With all these indices in place, fundamental analysis will now show that the corperation is undervalued. so D
Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis
perfectly fits the answer
Answer:
$12,000
Explanation:
The amount of intercompany profit should be eliminated on the consolidated statements workpaper is the written down value of the merchandise minus the cost of the remaining merchandise in S Company's inventory. This can be calculated as follows:
The written down value of the merchandise = $92,000
Cost of the remaining merchandise = $240,000 × (1 ÷ 3) = $80,000
Intercompany profit = $92,000 - $80,000 = $12,000
Therefore, the amount of intercompany profit should be eliminated on the consolidated statements workpaper is $12,000.
Answer:
Project A is the better option than Project B.
Explanation:
The NPV of the project will decide which is the option with greater value to shareholders. As we can see that the NPV of Project A at 10% cost of capital is greater than the NPV of Project B at the same 10% cost of capital. So the best option here is Project A as is more in value than project B. Hence the CEO must select Project A.
Answer:
A.TRUE
Explanation:
The statement is true because under international trade, firms are able to take advantage of the lower costs of materials, labor, and other factors of production, thanks to international trade.
For example, if country A is good at producing paper, and country B is good at logging, firms from country A will import the pulp from country B at lower prices, and thus, will spend less in making the paper.
Also, when firms expand capacity, they benefit from economies of scale: the general reduction in average production costs as output capacity expands.
