deals with a microeconomic because it is the result of decisions that people and corporations make.
Describe "Microeconomics"
Microeconomics is the study of how people, households, and businesses make decisions and distribute resources. It mainly pertains to markets for products and services and addresses both personal and financial concerns.
The study of microeconomics focuses on the decisions people make, the factors that shape those decisions, and how those decisions have an impact on the supply, demand, and price of items on the market.
The probabilities (tendencies) that come from people making choices in response to shifting incentives, prices, resources, and/or production processes are the main subject of the study of microeconomics.
to know more about microeconomics
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What will happen is that YOUR INSURANCE COMPANY WILL NOT PAY FOR THE DAMAGES.
Liability car insurance covers damages and injuries to third party's car only, it does not cover damages to the insurance owner's car. Comprehensive car insurance only cover damages done to one's car as a result of theft, fire, natural disaster, vandalism and other such acts, but does not cover damages that occur as a result of collision.
Answer:
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Explanation:
From the question,
It is given:
FOR STOCK Y
Stock expected return = 14.7%
Stock beta = 1.4
risk-free rate is 5.2%
The Reward-to-risk ratio is given by the difference between the stock expected return and risk free rate divided by the stock beta.
Therefore
Reward-to-risk ratio for stock Y = (14.7% - 5.2%)/1.4
= 6.79%
FOR STOCK Z
Stock expected return = 8.7%
Stock beta = 0.7
risk-free rate is 5.2%
Therefore
Reward-to-risk ratio for stock Z = (8.7% - 5.2%)/0.7
= 5%
FOR SML
market risk premium = 6.2%
Risk rate = 5.2
Therefore
Reward-to-risk ratio for SML = (6.2%)/6.2 - 5.2
= 6.20%
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Answer:
"charged to profit or loss"
Explanation:
According to the acquisition method, acquisition-related (transaction) costs are costs the acquirer incurs to effect a business combination. For example, the cost of the advisory, legal, accounting, valuation or consultancy fees, must not be included in the cost of the acquisition. These costs must be treated as an expense as incurred and written off to profit or loss.
The amount of transaction costs associated with an acquisition and written off during the period to profit or loss must be disclosed in a note to the financial statements.
So based on the above discussion the answer to the question shall be "charged to profit or loss"
Answer:
this one's a head scratcher. I believe it's a or b. hope that helps a little :)
