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4 years ago

In the context of trend analysis, what is the base amount?

2 answers:

7 0

A base year refers to the first of a years's series in an economic or financial index. New base years are introduced on a regular interval to keep data updated in a particular index. A base year helps to carry out comparisons in the measure of a business activity or economic index.

Trend analysis is the term used for calculating the amount of the increase/decrease for the period by subtracting the earlier year from the later year.

Negative difference means the change is a decrease, and positive difference represents an increase. So, in the context of trend analysis, the base year will be the current year.

Liono4ka [1.6K]4 years ago

5 0

Answer:

The answer is A

Explanation:

I just took the same test

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Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate 6.4%. Assuming the stock market i

scoray [572]

Answer:

Yes, Stock A has higher dividend yield

Explanation:

given data

market risk premium = 6.0%

risk-free rate = 6.4%

A B

Beta 1.10 0.90

Constant growth rate 7 % 7%

to find out

does stock A has higher dividend yield than Stock B

solution

we get here Stock A rA = 6.4% + 1.1 × 6%

Stock A rA = 13.00%

and

Dividend yield of stock A = rA - g

Dividend yield of stock A = 13.00% - 7%

Dividend yield of stock A = 6%

and

for Stock B rB = 6.4%+ .9 × 6%

Stock B rB = 11.80%

and

Dividend yield of stock B = rA - g

Dividend yield of stock B = 11.80% - 7%

Dividend yield of stock B = 4.80%

so we can say Yes, Stock A has higher dividend yield

4 0

4 years ago

A construction firm cannot obtain the necessary permits to begin building a shoppingmall until it can show it either has or will

Gnesinka [82]

Answer:

The answer is: B) II or III

Explanation:

A loan commitment is a bank’s (or any other type of lender) promise to offer a loan of a specified amount to a borrower.

A line of credit is an agreement between a bank (or other financial institution) and a customer for a maximum loan amount the customer can borrow.

7 0

3 years ago

What is the most common method of measuring flows of trade?

kakasveta [241]

The most common method to measure flows of trade is the comparison between the exportation of merchandise, services, and the capital of the countries.

<h3>What is trade?</h3>

Trade is the situation where the countries buy (import) from or sell (export) to the countries outside the boundaries of their own territories.

Exports referred to the scenario where one country provides goods and services to another country abroad. The comparison of goods, services, and monetary capital of foreign countries with respect to their own countries can be used as a common method to measure the trade flows.

Therefore, the exporting of goods, services, and capital to other countries is the method to determine trade flows.

Learn more about the trade from the related link:

brainly.com/question/3617318

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4 0

2 years ago

Tronnes Corporation's net income last year was $1,750,000. The dividend on common stock was $2.60 per share and the dividend on

Montano1993 [528]

Answer:

The price-earnings ratio is closest to:

B. 11.54

Explanation:

To find the Price-Earning Ratio first, it's necessary to deduct from the Net Income the part corresponding to Preferred Stock,

which is , $1,750,000 - (100,000*2,5= $250,000) = $1,500,000

Then we calculte the Earning/Share Ratio : $1,500,000/300,000 = 5

Finally with the Market Price of shares, we can calculate the Price Earnings Ratio ; $57,70 / $5 = 11,54

Shares of Common stock outstanding 300.000 780.000

Shares of Preferred stock outstanding 100.000 250.000

NET INCOME Available 1.500.000

The market price 57,70

Price–Earnings Ratio 11,54

Earnings/Share Ratio 5,00

NET INCOME $ 1.750.000

4 0

4 years ago

A company's plans to minimize theft and enhance the accuracy of accounting information are referred to as:

Alexandra [31]

Answer:

Internal controls.

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls in an organization or a company is to guarantee that losses are eliminated as there's a reliable and an accurate accounting system.

This ultimately implies that, an internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency. Internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

Hence, a company's plans to minimize theft and enhance the accuracy of accounting information are referred to as internal controls.

5 0

3 years ago