Answer:
True
Explanation:
<em>Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work. These units are determined as follows:
</em>
Equivalent units = Degree of work done(%) × units of inventory
Equivalent units
<em>Direct material:</em>
Balance of work = 100-80 = 20%
Equivalent of work to be added = 20% × 40,000 = 8,000
<em>Labour</em>
Balance of work = 100-50= 50%
Equivalent of work to be added =50% × 40,000 = 20,000 units
<em>Equivalent of work to be added(units)</em>
Material 8000
Labour 20,000
Answer:
PV of the stock today = $115.83
Explanation:
We will use the discounted cash flows approach to calculate the price of the stock today. This approach values the stock by accumulating the present value of all the expected future cash flows from the stock/asset.
As the preferred stock pays a constant dividend after equal intervals of time and for an indefinite period, it can also be treated as a perpetuity. Thus, the formula for the present value of perpetuity will be used to calculate the price of the stock at year 10 that we will discount back to today.
Present value of perpetuity = Cash flow / expected rate of return
PV of stock at Year 10 = 10 / 0.052
PV of stock at Year 10 = 192.3076923
The value of the today will be,
PV of the stock today = 192.3076923 / (1+0.052)^10
PV of the stock today = $115.83
Answer:
liquidity in the market
Explanation:
In business, market liquidity can be regarded as the trade off that exist between the price one want to sell an asset and how it can be sold out on time. It is a feature in which a particular firm as well as individuals can sell out any asset without serious change in the price of the asset. It should be noted that Even an economically sound economy will have problems managing risk and with solving investment issues. As these are resolved, it is most crucial to maintain Liquidity in the market
Answer:
The correct answer is: tolerance of uncertainty.
Explanation:
Even if the market for precious metals is facing a decline due to recession, Priscilla mortgaged her house so she can continue investing in her precious metals business. This decision reflects Priscilla's tolerance of uncertainty that comes to the surface when it is not confirm what the course of an event will be because the factors that determine the course are too ambiguous or even unknown. The adverse situation does not discourage Priscilla and she is being tolerant enough to decide to keep her business up and running.
Answer:
D) I and III only.
Explanation:
II is false because the standard deviation of each stock is an inner characteristic of the stock and cannot be affected by combining it with other stocks in an investment portfolio. I. is true because each stock risk answer to the sector risk and company risk essentially, and by having stock of different sectors and companies is expected that unsystematic risks as these are off-setted. By having a portfolio with wide not-correlated stocks is expected that the risk can be reduced dramatically.