The line items would be found on a statement of stockholders' equity that would not be on the statement of retained earnings is
a) Additional Paid-in capital
c) Common Stock
e) Treasury Stock
What are retained earnings?After subtracting dividends, retained earnings are the total net profits or profit of the company. Retained Earnings is a word used to indicate a company's previous profits that haven't been distributed as dividends.
Previously issued stock that has been purchased by the issuing business from stockholders is referred to as treasury stock. One type of security is common stock, which is a way to own business shares. The words "voting share" and "ordinary share" are also often used.
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The complete question is probably
Which of the following line items would be found on a statement of stockholders' equity that would not be on the statement of retained earnings?
a) Additional Paid-in Capital
b) Dividends Payable
c) Common Stock
d) Dividends
e) Treasury Stock
f) Net Income
which of the following is the number of different product lines available at a particular retail store?
Merchandise breadth is the number of different product lines available at a particular retail store. A department store that offers a smaller selection of products than a full-line department store; normally, a limited-line department store will have high-quality products at expensive prices.
Department shops are characterised by the incredibly varied product combinations they carry. In other words, they offer a broad range of products, including clothing, appliances, and hardware. Every type of product typically has its own section or division in the store. This covers a variety of retail establishments, such as department stores, specialty shops, supermarkets, convenience stores, etc.
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below are the summarized statements of cash flows for two companies. based on the information discussed in class, which company has a stronger statement of cash flows? car corporation bus corporation net cash flows from operating activities 1,100 25,600 net cash flows from investing activities 2,700 (6,250) net cash flows from financing activities 4,200 (11,700) net change in cash $8,000 $7,650
Net change in cash $8,000 $7,650 has a stronger statement of cash flows.
The amount of money that flows into and out of a business is referred to as its cash flow .For businesses, sales bring in money, but they also have expenses. They might also make money from investments, royalties, licensing agreements, and interest. Additionally, they could provide things on credit with the promise of payment later. Evaluating the quantity, timeliness, and unpredictable nature of cash flows as well as their origins and destinations is one of the most important objectives of financial reporting. It is essential for figuring out an organization's liquidity, adaptability, and overall financial success. A company's ability to fulfill commitments, reinvest in its business, distribute earnings to shareholders, cover costs, and function as a safety net in case of impending financial troubles is indicated by positive cash flow.
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Net change in cash $8,000 $7,650 has a stronger statement of cash flows.
The amount of money that flows into and out of a business is referred to as its cash flow .For businesses, sales bring in money, but they also have expenses. They might also make money from investments, royalties, licensing agreements, and interest. Additionally, they could provide things on credit with the promise of payment later. Evaluating the quantity, timeliness, and unpredictable nature of cash flows as well as their origins and destinations is one of the most important objectives of financial reporting. It is essential for figuring out an organization's liquidity, adaptability, and overall financial success. A company's ability to fulfill commitments, reinvest in its business, distribute earnings to shareholders, cover costs, and function as a safety net in case of impending financial troubles is indicated by positive cash flow.
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In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from.
The proceeds from issuing equity instruments should be listed as cash inflows from lending activities in a statement of cash flows.
Where does equity go on cash flow statement?
The income statement, balance sheet, and cash flow statement are the three main financial reports that businesses consistently produce. The cash flow statement is also referred to as the statement of cash flows. The cash flow statement is useful since most organisations utilising accrual basis accounting find it challenging to keep track of their cash inflows and expenditures.
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an account that is not closed at the end of the period is called a(n) ________.
An income fee account profits exact account temporary account everlasting account is one that isn't closed at the end of the accounting period. Thus, the correct answer is income fee.
What is an accounting period?An accounting period is the time period in which management accounts and financial statements are generated in bookkeeping. In management accounting, the accounting period varies widely and is set by management. Monthly accounting periods are common. In financial accounting, the accounting period is determined by regulation and is normally 12 months. The start of the accounting period differs by jurisdiction. For example, one business may use the calendar year, which runs from January to December, while another may use the fiscal year, which runs from April to March.
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Having unnecessary fluff in your comments can _____. a. cause your message to be unclear b. make your audience energized c. make your comments more concise d. show off your education please select the best answer from the choices provided a b c d
Having unnecessary fluff in your comments can show off your education.
The process of teaching and learning, especially in schools and universities, or the knowledge derived from it” It is also a sector of the economy and society. For example, teachers and university professors work in education, pilots and civil servants in aviation and civil service.
Education goes beyond what takes place within her four walls of the classroom. Children are educated from out-of-school and in-school experiences based on these factors. There are her three main types of education: formal, informal and non-formal.
Education gives everyone the opportunity to gain new knowledge and learn soft skills that can help them improve their lives. Education also helps children, from an early age, to value themselves, their ambitions, their knowledge, and understand the unique opportunities they are given.
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Effective vision statements are characterized by clarity and
Multiple Choice
diversity.
quality control.
collaboration.
future focus.
Effective vision statements are characterized by clarity and future focus. Thus, option 'D' is the correct option.
What is an effective vision statement?When we consider the term "vision," we are driven to an image of the potential improvement above the present. Most vision casting does an excellent job of creating an optimistic picture of the rewards that are involved, but not a particularly accurate picture of the expenditures necessary to get there.
This is a serious issue because if people are not ready when the anxieties and negative forces associated with change begin to surface, they may rapidly quit, which might lead to the death of the vision.
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When Joe's Manufacturing Company successfully differentiates its product, then from the perspective of consumers: there are different prices charged by different sellers, but the product is the same. the output of rival sellers is not a good substitute for Joe's output. the product may be different, but price remains the key factor in purchase decisions. rival sellers produce different but equally desirable products.
When Joe's Manufacturing Company successfully differentiates its product, then from the perspective of consumers: the output of rival sellers is not a good substitute for Joe's output. Option 2.
What is meant by product differentiation?The trait or characteristics that set your product or service apart for your target market are known as product differentiation. It helps you set yourself apart from your competition and boosts brand loyalty, sales, and growth.
Businesses employ the technique of product differentiation to set one product or service apart from comparable ones that are already on the market. This strategy tries to assist companies in creating competitive advantages and compelling USPs that distinguish their goods from those of rivals.
When Joe's Manufacturing Company successfully distinguishes its product, consumers will not consider the output of other sellers to be a good replacement for Joe's output.
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The process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements is referred to as:
A. incremental cash flows.
B. estimation and depreciation analysis.
C. pro forma analysis.
D. substitute and complement.
Pro forma analysis is the process of calculating projected future cash flows for a project utilizing only the pertinent balance sheet and income statement information.
Which of these describes the procedure for calculating a project's anticipated future cash flows?The term "discounted cash flow" (DCF) refers to a method of valuation that calculates an investment's value based on its anticipated future cash flows. Using estimates of how much money an investment will make in the future, DCF analysis seeks to evaluate the value of an investment today.
Why do we estimate cash flows?The process provides a framework for creating and implementing the best investing plans. Long-term investments' economic feasibility is assessed using cash flow forecasts. The money Through the use of discounted and non-discounted cash flow methodologies, project flows are estimated.
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bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. which of the following riders should she consider?
Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. Guaranteed insurability option riders should she consider
Guaranteed Insurability is an optional feature of life and health insurance that gives the insured the freedom to buy more coverage without having to get a physical or otherwise demonstrate their health.
By using guaranteed insurability or guaranteed purchase option riders, you can raise the death benefit of your life insurance policy at a later time without having to undergo a medical examination. One or more people you choose as beneficiaries will receive a particular death benefit from a standard life insurance policy. You can improve or increase the coverage of your insurance policy using riders.
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The illness of which president led to his wife assuming some of his responsibilities and decision making?.
The illness of president Woodrow Wilson led to his wife assuming some of his responsibilities and decision making.
In December 1915, during Wilson's first term as president, she married the widower Wilson. Following President Wilson's severe stroke in October 1919, Edith Wilson played an important role in his administration.
Woodrow Wilson-Thomas Woodrow Wilson was an American politician and academic who served as the United States' 28th President from 1913 to 1921. Wilson, a Democrat, served as president of Princeton University and as governor of New Jersey before winning the presidential election in 1912.
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_____ helps develop an accurate projection of a project’s financial expenses and benefits.
Project Cost Management helps develop an accurate projection of a project’s financial expenses and benefits.
What is cost management?Project Cost Management is a technique that makes use of technology to monitor cost and productivity over the course of an enterprise-level project's entire lifecycle. PCM includes a number of particular project management processes, such as estimating, job controls, field data gathering, scheduling, accounting, and design. The practise of organising and regulating a company's operating expenses is known as cost management. In order to budget, anticipate, and monitor costs more accurately, it also involves gathering, evaluating, and reporting cost information. Cost management is a task that involves the procedures needed to keep projects' finances under good control (evaluating, estimating, budgeting, monitoring, analyzing, forecasting and reporting the cost information).
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In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 10 percent implies that the Fed:
A) sold $500 in government bonds.
B) sold $50 in government bonds.
C) purchased $50 in government bonds.
D) purchased $500 in government bonds.
If in the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 10 percent implies that the Fed: B) sold $50 in government bonds.
How to find the government bonds?Using this formula to find the government bonds
Government bonds = Checkable deposits × Required reserve ratio
Where:
Checkable deposits = $500
Required reserve ratio = 10% or .10
Let plug in the formula
Government bonds = $500 × .10
Government bonds = $50
Therefore the correct option is B.
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Royal Theater credited Unearned Revenue of $35,000 for tickets sold for its season of four plays, which will be presented at the end of one fiscal period and the beginning of the next. As of December 31, the end of their fiscal period, Royal Theater had earned $16,000. The adjusting entry is a. debit Unearned Revenue, $16,000; credit Ticket Income, $16,000. Ob. debit Cash, $16,000; credit Unearned Ticket Revenue, $16,000. Oc. debit Ticket Income, $19,000; credit Unearned Ticket Revenue, $19,000. Od. debit Unearned Revenue, $19,000; credit Ticket Income, $19,000. Oe. debit Cash, $16,000; credit Ticket Income, $16,000.
S.No Date Accounts Titles and Explanation Debit Credit
1 31-Dec Unearned Revenue 16000
Ticket Income 16000
The adjusting entry is debit Unearned Revenue, $16,000; credit Ticket Income, $16,000.
Revenue (or total revenue) refers to the value of services sold, i.e. the number of units multiplied by the price per unit. The average return is the return per unit. H. Total revenue divided by the volume of services sold. Therefore, the average profit equals the unit price.
Both are important ways to understand your business. Sales represent the income generated by a business operation, while profit represents the net profit after deducting costs from the results. Earnings can take many forms, including B. Sales, Commission Income, and Property Income.
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working capital management is relatively unimportant for a small business.
This assertion is false. Working capital management is somewhat significant for a small business.
What really is working capital management for small company?Working capital management refers to the process of adjusting a business strategy in such a way that it ensures a firm can function profitably by making the best use of and monitoring its current assets and liabilities.
Working capital represents how efficiently a company is working. A business owner needs to have a better liquidity position because it doesn't have many alternative resources to rely on if its assets can't pay its expenses. A positive working capital would be when current assets surpass current obligations.
Why is working capital vital for a small business?Understanding your working capital gives you a snapshot of your operational efficiency and short-term financial health. Companies can invest and expand if they have extra working capital. However, if their working capital is negative, they could not be able to pay their debtors or workers.
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Advertising for a brokerage corporation must include theRegistered name of the brokerage firmFirm’s occupational license numberFirm’s address and telephone numberBroker’s license number
Advertising for a brokerage corporation must include the firm's occupational license number must be included. The second option is the correct answer.
What is advertising?Advertising refers to the methods used to draw attention to a good or service. In order to attract consumers' attention, advertising seeks to highlight a good or service.
A marketing strategy known as advertising involves purchasing real estate to advertise a good, bad, or intangible idea. Ads, as they are commonly known, are the real advertising messaging. Reaching the demographics most likely to be interested in purchasing a corporation's goods or services is the aim of advertising.
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Firms are willing to offer generous rebates because Multiple Choice rebates are the only type of sales promotion proven to impact sales. they tend to generate repeat customers. they are easier for the consumer to use than are coupons. the retailer and manufacturer always split the cost. rebates increase sales, but firms may not have to pay off all the rebates offered. Yanni is working on an advertisement to promote consumer awareness of the danger of solar radiation causing skin cancer. Yanni’s first concern will be to Multiple Choice identify the target audience. use public relations to buy advertising space. enlist creative advertising designers. make sure firms producing sunscreen lotions approve. collect a petition in support of controls against global warming. Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers browse frames on Warby Parker's website and select five pairs they would like to try on. They can then choose to purchase or return the frames. Warby Parker handles all the shipping costs and provides all the return packaging. This relates to the ________ of its products. Multiple Choice observability complexity trialability relative advantage compatibility
Rebates are payments made in the past that ultimately lower the final price of a good or service. Given that you pay the whole amount of the bill up front and may later receive a partial refund, rebates vary from discounts in this regard. The rebate reduces the final purchase price by giving the customer a lump payment or a percentage of the sales price after the sale has been completed. Rebates may occasionally only be provided when a certain purchase threshold has been reached.Yanni is working on an advertisement to promote consumer awareness of danger of solar radiation causing skin cancer. Yanni’s first concern will be to identify the target audience, and get consumers’ attention.Warby Parker handles all the shipping costs and provides all the return packaging. This relates to the trialability of its products of its products.
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a company budgets the following direct materials purchases: april: $70,000; may $90,000; june: $60,000. all purchases are on account and the company pays 25% of purchases in the month of the purchase, 50% in the month after the purchase, and the remaining balance in the second month after the purchase. cash payments for june for direct materials is $
The cash payments for the month of June for direct materials, can be found to be $77, 500
How to find the cash payments?In the month of June, the company would see a cash payment of 25% for the direct materials purchased in June. It would see 50% for the direct materials purchased in May, and it would see the rest of the balance of the direct payment from April.
The cash payments for June for direct materials is therefore:
= ( 25 % x June purchases ) + ( 50 % x May purchases ) + ( 25 % x April purchases )
The cash payments in June is:
= ( 25 % x 60, 000 ) + ( 50 % x 90, 000 ) + ( 25 % x 70, 000)
= 15, 000 + 45, 000 + 17, 500
= $77, 500
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sidebar interaction. press tab to begin. the process of forming judgements about what could happen in the future and which actions are worth your investment is called
The process of forming judgments about what could happen in the future and which actions are worth your investment is called justify.
Investment is the willpower of money to buy of an asset to acquire an boom in cost over a period of time. investment calls for a sacrifice of a few present asset, such as time, cash, or effort. In finance, the cause of making an investment is to generate a go back from the invested asset
Funding involves putting capital to apply these days so that you can growth its value over the years. Funding requires setting capital to paintings, in the form of time, money, effort, and so on., in hopes of a extra payoff within the future than what turned into initially installed.
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What can a firm do to increase productivity in the short run once its marginal product is zero?.
Decrease the quantity of the input can a firm do to increase productivity in the short run once its marginal product is zero.
What can a firm do to increase productivity in the short run?A company must use more of a variable input in the short term to increase production. In this time, three relationships are very important. (The discussion that follows will assume that the only variable input is labor.) The whole amount of output produced is known as the total product (TP or Q).
The marginal product is zero when the total product is at its highest level. True. Marginal product is positive but declining when total product is growing at a slower rate. The law of diminishing marginal returns results in an increased slope in the short-run marginal cost curve.
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Initially, the Republic of Gorgonzola has no commercial banking system. To make trading easier and eliminate the need for barter, the government directs the central bank of Gorgonzola to put into circulation 3,000,000 identical paper notes, called guilders. The central bank prints the guilders and distributes them to the people. At this point the Gorgonzolan money supply is 3,000,000 guilders.In order to keep the money safe, some Gorgonzolan entrepreneurs set up a system of commercial banks. When people need to make a payment, they can either withdraw their guilders or write a check on their account. Checks give the banks permission to transfer guilders from the account of the person paying by check to the account of the person to whom the check is made out. With a system of payments based on checks, the paper guilders need never leave the banking system, although they flow from one bank to another as a depositor of one bank makes a payment to a depositor in another bank. Deposits do not earn interest in this economy.Let’s suppose for now that people prefer bank deposits to cash and so deposit all of their guilders with the commercial banks. Assume that (1) initially, the Gorgonzolan central bank puts 3,000,000 guilders into circulation and (2) commercial banks desire to hold reserves of 20 percent of deposits. Assume that the public holds no currency.
It is to be noted that based on the Consolidated Balance Sheet, the final value of the guilders is ƒ15,000,000 guilders.
What is a Consolidated Balance Sheet?A consolidated balance sheet is a record that represents a parent company's overall financial position as well as the financial circumstances of all of its subsidiaries on a single sheet, without splitting the organizations. It is structured similarly to a typical balance sheet.
The above computations are as follows:
a. The Gorgonzolan commercial banks' Consolidated Balance Sheet after the initial deposits is:
Assets Liabilities
Currency 3,000,000 Deposits 3,000,000
b. The Gorgonzolan commercial banks' Consolidated Balance Sheet after one round of loans is:
Assets Liabilities
Currency (= reserves) 600,000 Deposits 3,000,000
Loans 2,400,000
c. The Gorgonzolan commercial banks' Consolidated Balance Sheet after the first redeposit of guilders is:
Assets Liabilities
Currency (= reserves) 3,000,000 Deposits 5,400,000
Loans 2,400,000
d. The Gorgonzolan commercial banks' Consolidated Balance Sheet after two rounds of loans and redeposits is:
Assets Liabilities
Currency (= reserves) 3,000,000 Deposits 15,000,000
Loans 12,000,000
e. The final values of bank reserves, loans, and deposits are:
Final consolidated balance sheet
Assets Liabilities
Currency (= reserves) 3,000,000 Deposits 15,000,000
Loans 12,000,000
The final value of the guilders is ƒ15,000,000 guilders.
Recall that:
Initial Deposit = 3,000,000
Reserves rate = 20%
Reserves = 600,000 guilders (3,000,000 x 20%)
Initial Loans = 2,400,000 guilders (3,000,000 - 600,000)
First redeposit = 5,400,000 guilders (3,000,000 + 2,400,000)
If the Reserves are 3,000,000 guilders after the second round of loans and deposits, then, the Deposits = 15,000,000 guilders (3,000,000/20%).
And the Loans = $12,000,000 (15,000,000 - 3,000,000)
Therefore, the final value of the guilders is ƒ15,000,000 guilders.
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heinrich, the principal executive officer of a publicly held corporation, received $2.5 million compensation this year. the compensation consisted of an $800,000 base salary and a $1.7 million year-end bonus for outstanding performance. the corporation is allowed to deduct the entire amount of heinrich's compensation.
It is FALSE to indicate that the corporation is allowed to deduct the entire amount of Heinrich's compensation.
What are the deductions that can be made to a person's compensation?The statute-based deductions that are permissible in the above case as well as in others (all things being equal) are;
1) Standard Deductions
The standard deduction is a fixed amount allowed by the IRS to taxpayers.
Single Filers - $6,300Married filing jointly - $ 12,600Head of Household - $9,3002) Itemized Deductions
The taxpayer totals all permissible deductions and claims the total as a deduction from gross income.
In other words, itemized deductions refer to the actual amount of allowable deductions. Itemized deductions often include mortgage interest, IRA contributions, property taxes, and so on.
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in perfect competition, the assumption of easy entry and exit implies that:
In perfect competition, the assumption of easy entry and exit implies that In the long run all firms in the industry will earn zero economic profit.
What happens in perfect competition ?In a perfect competition, there are little to no barriers to entry which means that there is an assumption of easy entry and exit. In other words, any company can start trading in a perfectly competitive market.
The implication of this is that in the long run, all the firms in this industry will earn zero economic profits. The reason is that firms will enter when there is a short term economic profit and the sharing of profit will bring the profits down to zero.
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A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and wellpoints) is placed in service on July 10 by a calendar-year taxpayer for $300,000. It is sold almost 5 years later on May 15. Click here to access the MACRS-GDS Property Classes Determine the depreciation deduction during each of the years involved. EOY Depreciation Deduction 0 1 2 3 $ $ $ s 4 5 $ 6 $
Depreciation deduct for year 1,2,3,4,5 are $3510,$16800,16800,16800 and 2880 respectively.
It is given that cost of the building is $300000 and is sold for 5 years.
We know that
Depreciation deduct = Depreciation rate × Cost
Depreciation rate for year 1 = (5.5/12)*0.0256 = 0.0117
Depreciation rate for year 2,3,4 = 0.056
Depreciation rate for year 5 = (4.5/12) * 0.0256 = 0.0096
Depreciation deduct for year 1 = 0.0117 * 300000 = $3510
Depreciation deduct for year 2,3,4 = 0.056 * 300000 = $16800
Depreciation deduct for year 5 = 0.0096 * 300000 = $2880
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flow directly from a job description and indicate what the job accomplishes and how performance is measured in key areas of the job description. If employees know what is expected of them and how performance is measured, they have a much better chance of performing satisfactorily.
In essential sections of the job description, performance standards outline what a job does and how performance is evaluated.
How are job descriptions and performance related?All performance evaluations must to include job descriptions as a core component. Without them, the review might not accurately reflect the performance of the employee. When job descriptions are employed, it is possible to use them as a checklist to check off if an employee has completed all of the requirements for the position.
What steps comprise the job description process?A job description is a practical document written in simple language that outlines the duties, responsibilities, tasks, and goals of a position. It specifies who does particular types of labor, how that work is to be done, as well as the timing and frequency of the work's purpose in relation to the objectives and mission of the organization.
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Say you own an asset that had a total return last year of 11.95 percent. If the inflation rate last year was 2.32 percent, what was your real return?
The real return last year was 9.63 percent.
Real return is calculated by subtracting the inflation rate from the total return.
In this case, 11.95 percent (total return) - 2.32 percent (inflation rate) = 9.63 percent (real return).
In the field of economics, inflation is the broad term for a rise in the cost of goods and services across an economy.
Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
After deducting taxes and inflation, an investment's real return is what was made. Real returns are less favourable than nominal returns, which do not account for inflation or taxes.
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product x has an income elasticity of demand coefficient of -2. it also has a cross-price elasticity of demand coefficient of -2 with product y. which of the following is true? a product x and product y are subsitutes. b an increase in the price for product x will cause an increase in total revenue for product x c an increase in the price of product y will decrease the demand for product x. d product y is an inferior good. e the demand for product x is relatively elastic.
With the given information of income elasticity and cross-price elasticity an increase in the price of product Y will decrease the demand for product X
Cross-price elasticity quantifies how responsive a product's demand is to changes in a related product price. Some products on the market frequently have connections to one another. This could imply that the demand for a product can be favourably or negatively impacted by a product's price change.
Alfred Marshall's "price elasticity of demand" theory foresaw how prices and quantities would fluctuate in relation to one another. Professor Stocking first considered that movement of two prices in the same direction explicitly demonstrates a high cross-price elasticity in the Cellophane instance because he believed that a change in the price of one product will drive a price change of its rivals in the same direction.
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The independence hypothesis suggests that the total market value of the firm's outstanding securities is unaffected by its capital structure.
The independence hypothesis predicts a decline in earnings and dividends as financial leverage rises. The total market value of the firm's outstanding securities is unaffected by its capital structure.
A company's capital structure is the specific mix of debt and equity it uses to finance both its general operations and expansion.
Shares in a corporation and claims to its future cash flows and earnings are the source of equity capital. While equity might take the form of common stock, preferred stock, or retained earnings, debt typically takes the form of bond issuances or loans.
The capital structure is also thought to include short-term debt. The balance sheet includes both equity and debt. The assets of the business, which are also listed on the balance sheet, are bought using loan or stock. Depending on a corporation, its capital structure.
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assume that today is december 31, 2021, and that the following information applies to abner airlines: after-tax operating income [ebit(1 - t)] for 2022 is expected to be $600 million. the depreciation expense for 2022 is expected to be $110 million. the capital expenditures for 2022 are expected to be $375 million. no change is expected in net operating working capital. the free cash flow is expected to grow at a constant rate of 5% per year. the required return on equity is 15%. the wacc is 12%. the firm has $190 million of nonoperating assets. the market value of the company's debt is $4.092 billion. 100 million shares of stock are outstanding. using the corporate valuation model approach, what should be the company's stock price today? do not round intermediate calculations. round your answer to the nearest cent.
The current share price of the corporation should be $14.55.
The following steps can be used to estimate this utilising the corporate valuation model approach:
Calculating the free cash flow is the first step.
The money a company makes after deducting capital expenditures is known as free cash flow. This can be calculated using the formula below:
After-tax operating income plus depreciation costs less capital outlays equals free cash flow (FCF).
In response to this query, we have:
Free Cash Flow (FCF) = $600 + $110 - $375 = $375 million.
Step 2: Value of operations are calculated (Vo)
Vo=FCF÷(WACC-FCF growth rate)
= 375/ (12%-5%)
= 5357.14 million
Step 3: calculating the firm value
Vo plus non-operating assets equal a firm's value
= 5357.14 million + 190 million
=5547.14 million
Step 4: Value of equity calculation
= Firm value - Debt
= $5547.14 - $4092
=$1455.14 million
Step 5: Today's stock price per share calculation
= equity value divided by shares outstanding
= 1455.14 ÷ 100 million
= $14.55
As a result, the stock price for the company today should be $14.55 a share.
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FILL IN THE BLANK. ___ are ostensibly designed to protect the parental rights of a putative father who has registered by giving him notice of a pending adoption proceeding.
Financial statement are ostensibly designed to protect the parental rights of a putative father who has registered by giving him notice of a pending adoption proceeding.
Despite occasional linguistic variations, "putative father" generally refers to a male who alleges or asserts parental rights for a child born to a woman to whom he was not married at the time of the kid's birth. The father acquires parental responsibility for his kid by having his name added to the birth certificate. After then, his child is eligible for benefits including Social Security, life insurance, military pay, and inheritances. To provide a man in this situation with notice before any termination procedures, Pennsylvania keeps a record of putative dads.
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which of the following controls would most likely reduce the risk of diversion of customer receipts by a client’s employees?
(1) A bank lockbox system.
(2) Prenumbered remittance advices.
(3) Monthly bank reconciliations.
(4) Daily deposit of cash receipts.
Option (a), a bank lockbox system would probably reduce the likelihood that a client's staff would steal customer receipts.
What is a bank lockbox system?Businesses can receive payments from customers by using the lockbox banking facility that banks provide as a service. The service directs customer payments to a specific post office box rather than to the company.
When you use a bank's lockbox service, you have access to one or more lockboxes, which are simply post office boxes that the bank can put up across the country so that your business can collect client checks or payments. Lockbox solutions enable businesses to receive money more quickly.
Who use a lockbox setup?Lockboxes are available as retail or wholesale. Retail lockboxes are frequently utilized by companies that get a lot of small-dollar cheques. For instance, medical practices frequently receive a large number of postal checks in a range of amounts, based on the copays of the patients.
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