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Aloiza [94]
3 years ago
9

Stock prices follow a random walk with a trend because:__________

Business
1 answer:
Bumek [7]3 years ago
6 0

Answer:

Stock prices follow a random walk with a trend because:__________

d. stock prices are based on both future profits and expectations about future profits and gradually rise over time.

Explanation:

The random walk theory of the stock price movement states that there is no observable pattern or trend to the movement of a stock price.  It is, therefore, impossible to use the past movement or trend of a stock price to predict its future movement.  This means that the wise investor should invest in the market portfolio to reflect more closely the movement of stock prices in the market instead of investing in a single stock or market security.

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Which of these statements best represents the law of supply? select one:
Nata [24]

The answer is: A.When the price of a good decreases, sellers produce less of the good

When the price of a good decrease, the amount of profit that the sellers could made is also decreasing. Because of this, sellers would feel less motivation to sell that product and start to reduce the supply of the product and replace it with newer ones.

7 0
3 years ago
Qs 3-2 computing accrual and cash income lo c1 in its first year of operations, roma co. earned $64,000 in revenues and received
zmey [24]

Answer:

$17,600 ; $29,000

Explanation:

The computation of the net income is shown below:

Based on Cash basis

= Received cash - Expenses incurred in cash - prepaid expenses

= $56,000 - $26,900 - $11,500

= $17,600

Based on Accrual basis

= Revenue earned - expenses incurred

= $64,000 - $35,000

= $29,000

The cash expenses incurred is

= $35,000 - $8,100

= $26,900

5 0
3 years ago
Camper's Edge Factory produces two products: canopies and tents. The total factory overhead is budgeted at $750,000 for the year
Pavel [41]

Answer:

Camper's Edge Factory

Departments                                  Cutting             Sewing

a. The total number of budgeted

   direct labor hours for the year  60,000            70,000

b. Products                                     Canopy          Tent

   Factory overhead per unit         $17.50            $40

Explanation:

a) Data and Calculations:

Total budgeted factory overhead = $750,000

                                               Canopy        Tent     Total

Direct labor hours  

Cutting                                       2                     1         3

Sewing                                       1                     6         7

Total direct labor hours            3                    7

Budgeted production units 20,000          10,000

Departments                              Cutting                        Sewing

Budgeted factory overhead  $350,000                     $400,000

Direct labor hours:

Canopy                                  40,000 (20,000 * 2)          10,000 (10,000 * 1)

Tent                                       20,000 (20,000 * 1)          60,000 (10,000 * 6)

Total direct labor hours        60,000                              70,000

Overhead allocation rates     $5.833                               $5.714

                         ($350,000/60,000)                              ($400,000/70,000)

Overhead per unit              $17.50 ($5.833 * 3)            $40 ($5.714 * 7)

               

5 0
2 years ago
Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio'
agasfer [191]

Answer:

0.68

Explanation:

A portfolio consists of an investment of $7,500

The amount of common stock is 20

The portfolio beta is 0.65

Suppose one of the stock in the portfolio is sold with a beta of 1.0 for $7,500

The proceeds realized is then used to purchase another stock with a beta of 1.50

The first step is the to calculate the change in beta

Change in beta= 1.50-1

= 0.5

The next step is to divide the change in beta by the number of common stock

= 0.5/20

= 0.025

Therefore, the new beta can be calculated as follows

= 0.65+0.025

= 0.68

Hence the new portfolio's beta is 0.68

4 0
3 years ago
Inventories Raw materials $ 42,000 $ 32,000 Work in process 9,100 18,300 Finished goods 57,000 34,300 Activities and information
Svetach [21]

Answer:

a. Computation of the following amounts for the month of May using T-accounts:

1. Cost of direct materials used = $176,000

2. Cost of direct labor used = $77,000

3. Cost of goods manufactured = $286,150

4. Cost of goods sold = $308,850

5. Gross profit = $691,150

6. Overapplied or underapplied overhead = $89,650 (underapplied)

b. Journal Entries:

Debit Raw materials $172,000

Credit Cash $172,000

To record the purchase of raw materials for cash.

Debit Factory payroll $100,000

Credit Cash $100,000

To record the payroll paid in cash.

Debit Factory overhead:

 Indirect materials $6,000

 Indirect labor $23,000

 Other overhead costs 103,000

Credit Raw materials $6,000

Credit Factory payroll $23,000

Credit Cash $103,000

To record indirect materials, labor and other costs.

Debit Work in process $42,350

Credit Factory overhead $42,350

To apply overhead based on direct labor cost 55%.

Debit Cash $1,000,000

Credit Sales Revenue $1,000,000

To record the sale of goods for cash.

Explanation:

a) Data and Calculations:

Inventories:

Raw materials $ 42,000 $ 32,000

Work in process 9,100 18,300

Finished goods 57,000 34,300

Activities for May:

Raw materials purchases (paid with cash) 172,000

Factory payroll (paid with cash) 100,000

Factory overhead:

Indirect materials 6,000

Indirect labor 23,000

Other overhead costs 103,000

Sales (received in cash) 1,000,000

Predetermined overhead rate based on direct labor cost 55%

T-accounts:

Raw materials

Beginning balance $ 42,000

Cash                         172,000

Manufacturing overhead                6,000

Work in process                          176,000

Ending balance                         $ 32,000

Work in process

Beginning balance    9,100

Raw materials       176,000

Payroll                     77,000

Overhead applied 42,350

Finished goods                          286,150

Ending balance                            18,300

Finished goods

Beginning balance 57,000

Work in process   286,150

Cost of goods sold                   308,850

Ending balance                           34,300

Manufacturing overhead

Indirect materials             6,000

Indirect labor                 23,000

Other overhead costs 103,000

Work in process                            42,350

Underapplied overhead               89,650

Sales revenue    $1,000,000

Cost of goods sold 308,850

Gross profit            $691,150

Analysis of Transactions:

Raw materials $172,000 Cash $172,000

Factory payroll $100,000 Cash $100,000

Factory overhead:

Indirect materials $6,000 Raw materials $6,000

Indirect labor $23,000 Factory payroll $23,000

Other overhead costs 103,000 Cash $103,000

Work in process $42,350 Factory overhead $42,350

Predetermined overhead rate based on direct labor cost 55%

Cash $1,000,000 Sales Revenue $1,000,000

5 0
2 years ago
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