Efficient market theory says we should expect the company's stock price to rise immediately with the expectation of higher profits in the future.
Efficient market theory is a hypothesis which shows that the price of an asset reflects all the information contained in it. For example, assets in the form of shares. Even though the price goes up and down, actually shares are always traded according to their fair value. Through this concept we can know that someone will not be able to continuously get profits above the average market return (beat the market).
In general, there are 3 forms of the efficient market hypothesis, namely:
Weak Efficient Market Hypothesis. This theory implies that there is no information that can show how the market and stock prices move.Semi Strong Efficient Market Hypothesis. This theory implies that the stock value is a description of all relevant information that can be known by the public.Strong Efficient Market Hypothesis. This theory states that all publicly accessible and confidential information can reflect stock prices.You can learn more about Efficient market theory here brainly.com/question/28549004
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Gordon’s growth model, also called the constant growth model, assumes that the present value of a stock’s __________ determines the value of the stock.
Answer:
dividends
Explanation:
Gordon's growth dividend model, also called the constant-growth model, assumes that the present value of a stock's dividends determines the value of the stock. One of the benefits of using this model is that you do not have to forecast a selling price, or a repurchase price, at some point in the future.
Which of these is a way to grow
a business without sacrificing
equity?
A. take out a loan
B. review the budget
C. seek investors
when audiences are allowed to preview actual movies such as pretty woman and national treasure: book of secrets before they are released to the general public, it is a part of the stage of the new-product process.
When people are allowed to preview actual movies before they are released to the audience, it is a part of the market testing stage of the new-product process.
Market testing is the final stage before the actual launch of products in the market. It is done on a limited basis with the purpose to ascertain the probable market success of the new products to be released. Market testing provides useable insight into the product acceptance level and customers’ satisfaction before it is commercialized in the market on a wider scale.
For example, providing the audience with a limited preview of actual movies before they are released is part of the market testing to explore necessary insights into audience response and feedback.
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silky smooth has an eps of $2.84 per share and a profit margin of 6 percent. if the ps ratio is 1.47 times, what is the stock price? group of answer choices $78.28 $17.04 $69.58 $81.18 $75.38
If silky smooth has an eps of $2.84 per share and a profit margin of 6 percent. if the ps ratio is 1.47 times. the stock price is $69.58
Stock priceWe would be making use of this formula to dertermine or find the stock price
Stock price = Earnings per share / Profit margin × ps ratio
Where;
Earnings per share = $2.84
Profit margin = 6% or 0.06
ps ratio = 1.47 times
Let plug in the formula
Stock price = $2.84 / 0.06 × 1.47 times
Stock price = $69.58
Therefore the stock price is $69.58
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of the following groups, who is eligible for unemployment insurance benefits? a. the unemployed who just entered the labor force b. the unemployed who were laid off because their previous employers no longer needed their skills c. the unemployed who quit their jobs d. the unemployed who were fired for cause
The correct answer is (b) i.e., unemployment insurance benefits will be given to those who were laid off because their previous employers no longer needed their skills.
Advantages from unemployment benefits are intended to provide momentary economic help to unemployed workers who are unable to find work without any fault of their own. Each state establishes its very own specific needs for recipients' eligibility, reward amounts, and terms of payment.
In this case the option (b) is correct because employees were fired because their previous employers no longer needed their skills means there is no fault of the existing employees, therefore they must be provided unemployment insurance benefits to secure their livelihood.
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taylor company had beginning inventory of $400 and ending inventory of $600. taylor company had cost of goods sold amounting to $1,800. what is the amount of inventory that was purchased during the period?
Taylor's amount of inventory that was purchased during the period was closing inventory - opening inventory $600 - $ 400 = $200 + COGS ($1800) = $2000.
When calculating average inventory, opening inventory—the value of goods carried over from the prior accounting period—is taken into account. It aids in calculating cost of products sold. The stock's value at the end of the accounting period is known as closing inventory, often referred to as ending inventory.
The cost of inventory encompasses all charges incurred by a company to bring the stock to its present location and state, including purchases, conversions, services, and other costs. Non-refundable taxes, shipping, trade discounts, and other direct and indirect costs associated with buying the item are all included in the purchase price. It excludes costs associated with selling and distributing.
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you own 330 shares of stock in halestorm, incorporated, that currently sells for $84.70 per share. the company has announced a dividend of $3.80 per share with an ex-dividend date of february 4. assuming no taxes, what is the value of the stock on february 4?
You presently hold 330 shares of halestorm, incorporated stock, each of which is valued at $84.70. The stock was trading at $80.90 on February 4 when the business declared a dividend of $3.80 per share.
The shares of ownership in a corporation or company are known as stock (sometimes known as capital stock). A single share of stock represents a portion of the corporation's ownership in relation to the total number of shares. This often entitles the shareholder to a percentage of the business's revenues, cash from the sale of company assets, or voting rights, often allocating these in accordance with the sum that each stockholder has invested. Not all stock is created equal.
For instance, some classes of stock may be issued with improved voting rights, without voting rights, or with a specific priority to collect profits or proceeds from liquidation before or after other classes of shareholders. On stock markets or privately, stock can be purchased and sold.
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joe smith resides in newton, ma and he is a successful independent insurance agent. recently, one of the life insurance companies with whom he places business offered him a special financial arrangement. if joe meets sales targets, he will receive large bonuse and will go on a trip to italy. joe will also be able to recruit and train sub-agents and receive an over-riding commission based on the amount of life insurance the sub-agents sell. based on this description, joe smith is a(n)
The joe smith entire amount of goods and services generated in an economy during a specific time period is known as the gross domestic product. One year's worth of productivity, for instance, is taken into account.
joe smith decides to sell the home he has called home for ten years. Since the house was included in GDP when it was purchased 10 years ago, the sale of property does not count as an addition to GDP. Recognizing that duplicate records will result from repurchase.
The commission paid to the real estate agent in this transaction increases GDP because the service was provided this year.
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joe smith Joe has sold the Smiths family the home he has lived in for the past ten years.
He received $300,000 for the residence.
Joe receives a $50,000 increase above the original price agreed upon ten years prior. He pays the real estate agent a 5% commission, or 5/100ths of one percent, or 0.05.
Consequently, the increase in GDP can be estimated as follows: $300,000 x 0.05 = $15,000
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The decentralized public ledgering system called ________ is used to record and manage transactions in traditional sectors like shipping, real estate, voting, and stock trading.
The decentralized public ledgering system called blockchain is used to record and manage transactions in traditional sectors like shipping, real estate, voting, and stock trading.
A blockchain is a shared distributed system or ledger among computer network nodes. A blockchain serves as a digital database for storing digitally encoded information. The most widely understood use of blockchain technology is for preserving a private and distributed history of transactions in cryptocurrency systems like Bitcoin. The invention of a blockchain is that it promotes trust without the requirement for a trustworthy 3rd person by ensuring the integrity and safety of a record of information.
Since decentralized blockchains are irreversible, the information stored into them cannot be altered. This implies that transactions are conducted using Bitcoin are available publicly and permanently recorded.
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A home country wants to limit outward fdi flow. What policy should the country implement?.
The country should implement policies that make it more difficult for firms to engage in outward FDI.
What is FDI?
An entity headquartered in a different country makes an investment in the form of controlling ownership in a company in another country. This investment is known as just a foreign direct investment (FDI). Thus, the idea of direct control sets it apart from a foreign investment portfolio. The investment may be made "inorganically" by purchasing a company located in the target country or "organically" by expanding the processes of an established business in that country. The origin of the investment has no bearing on whether it qualifies as an FDI. In general, "mergers and acquisitions, building the new infrastructure, reinvesting profits earned from foreign operations, and intra company loans" are considered to be examples of foreign direct investment. In a strict sense, direct foreign investment only refers to the construction of new facilities and a long-term ownership stake in a company that operates in a different economy than the investor.
These policies could include increasing the taxes on outward FDI, making it more difficult to obtain financing for outward FDI projects, and increasing the regulations that firms must comply with in order to engage in outward FDI.
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ford motor company reorganized its procurement process by simplifying and streamlining the process itself and as a result was able to cut the size of the accounts payable department by 95 percent. this is an example of
Re-engineering is the example used to cut he size of the accounts payable department by 95 percent.
What is known as Re-engineering?A good business process reengineering can elevate a mediocre business to the top of its sector. A excellent illustration would be the Ford Company's restructuring of its production procedures, which replaced manual labor with an assembly line.
Re-engineering is the process of disassembling a system and modifying it so that it may be put back together differently. This method includes a number of related steps, such as rebuilding, reverse engineering, and forward engineering.
Business Method By removing inefficient processes and the workers who carry them out, reengineering lowers costs and cycle times. Reorganization by teams reduces the need for management layers, speeds up information flows, and gets rid of mistakes and redundancy brought on by several handoffs.
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freese inc. sells a product for 650 per unit. the variable cost is 455 per unit, while fixed costs are 4,290,000. determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $655 per unit.
The Break-even point in units is 22000 units. The Break-even point in units after the increase is 21,450 units.
What is the break-even point?The BEP can be defined as the point where the demand and the supply are in a market are being met.
The information is given:
Freese Inc. sells a product = 650 per unit.
The variable cost = 455 per unit
fixed costs = 4,290,000.
A) calculating the break-even point in units
BEP in units= fixed costs (FC) / contribution margin per unit
BEP in units = 4,290,000/ (650 - 455)
=22,000 units
BEP (dollars)= fixed costs/ contribution margin ratio
= 4,290,000/ (195/650)
= $14,300,000
B) the selling price (SP) were increased by $655:
Break-even point (BEP) in units= fixed costs (FC)/ contribution margin per unit
= 4,290,000/ (655 - 455)
= 21,450 units
BEP (dollars)= fixed costs/ contribution margin ratio
= 4,290,000/ (200/655)
= $14,049,750
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Think of a product that you would use for innovation and enterprise.
Describing how the product will innovate within 5 years.
Answer:
it's 10/100
Explanation:
cause 5plus one more year will be ten but 5 more years is 100
TRUE OR FALSE
The Federal Rules of Evidence specify when hearsay evidence is admissible in a trial based on whether or not the person who made the statement is available to testify in court.
Explanation:
federal laws consists of a bunch of terms u never need to know so forget the question and get your teacher mad at u
What area represents consumer surplus after the government imposes the excise tax on the market?.
Area represents consumer surplus after the government imposes the excise tax on the market is triangle SlcS9.
He customer surplus is same to the vicinity among the call for curve and the brand-new equilibrium revenue after the imposition of the tax from an amount of zero to the brand-new equilibrium amount of consumer surplus. The deadweight loss is the triangular vicinity under the call for curve and above the deliver curve among portions Q1 and Q2. The deadweight loss suggests the autumn in general surplus that consequences from the tax.
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acme, inc. expects its current annual $2.50 per share common stock dividend to remain the same for the foreseeable future. therefore, the value of the stock to an investor with a required return of 12% is group of answer choices $18.33 $20.83 $30.00 $3.00
the value of the stock to an investor with a required return of 12% is $20.83.
What is stock?
Stock (also known as capital stock) in the financial industry refers to the shares into which possession of a company or corporation is divided. A single share of stock represents a fractional ownership interest in the company based on the total number of shares. This usually entitles this same shareholder (stockholder) to that portion of the company's earnings, the proceeds from the sale of company assets, or voting power, dividing these items frequently in proportion to the sums invested by each stockholder. Not every class of stock is created equal; some may have enhanced voting rights, no voting restrictions, or a specific priority to receive profits as well as liquidation proceeds pre or post other courses of shareholders.
i. Dividend per share is 2.5.
12% is the required rate of return.
Shares forever pay a fixed dividend.
ii. For a stock that consistently pays dividends
Dividend/required rate = Stock price
iii. Price of a share = 2.5/0.12 = $20.833
$20.833 is the current stock price.
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the premium of a currency put option should increase if: the spot rate increases. none of these are correct. the volatility of the underlying asset increases. the volatility of the underlying asset increases and the spot rate increases.
The premium of a currency put option should increase if: the volatility of the underlying asset increases. If the futures rate is lower than the forward rate, astute investors would attempt to simultaneously buy futures and sell forward.
What is a put option on currency?The owner of a currency put option is granted the right, but not the responsibility, to sell a certain currency at a particular price within a predetermined window of time. Features.As investors are not required to buy or sell the CO underlying the Option at expiration, investors should limit losses to the premium paid.give investment portfolios defense against changes in exchange rates.Permit the holder to set import and export pricing. The only time currency put options are beneficial is when currency values are falling.(Exercise Price Spot Exchange Rate) x Put Purchase Price equals the gain on a currency put. A contract that grants the buyer the right, but not the responsibility, to purchase or sell a specific currency at a particular exchange rate on or before a set date is known as a currency option (also known as a forex option).The vendor receives a premium in exchange for this right. By effectively keeping a short-selling position, put purchasers profit.When the stock price drops below the strike price before the expiration time, the owner of a put option makes money.Within the designated expiration period, the put buyer may exercise the option at the strike price. In order to increase their profit from a stock's decrease, traders purchase put options.A trader can make money from stock prices below the strike price up until the option's expiration for a minor up-front investment.When purchasing a put, you often anticipate a decline in the stock price before the option expires.To learn more about currency put option refer
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abc company prepared a cash budget for the month. the company has outstanding loans and desires a minimum cash balance of $10,000. if the company has a preliminary cash balance of $25,000, the company should:
If the company has a preliminary cash balance of $25,000, the company should: repay loans of $15000.
What should the company do?A cash balance is the sum of money that a business presently has on hand. This money is kept on hand to cover any unanticipated financial withdrawals.
Businesses may find themselves unable to pay their expenses if this safety net is not in place. The cash balance is often used to pay down debt or distributed to investors in the form of a dividend.
Generally, Desired cash Balance =$ 10000.
The company has a preliminary cash balance of $25000:
The company has an excess cash balance of $ 25000
Therefore the company should repay loans of $15000.
If they do so, the cash balance will be $10000(25000-15000).
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industries is planning on purchasing a new piece of equipment that will increase the quality of its production. it hopes the increased quality will generate more sales. the company's contribution margin ratio is 40%
Breakeven point = Fixed cost / Contribution Margin Ratio
Fixed cost=0.40 x 650,000
Fixed cost=260000
If the company's fixed expenses increase
Fixed cost=260000 + 35000
Fixed cost=295000
Breakeven point = 295000/ 0.40
Breakeven point = 737,500
The new breakeven point is 737,500 in sales revenue.
The break-even point is the point at which your small business experiences neither a profit nor a loss. break-even point is reached when total costs and total revenues are equal. In other words, you've reached the point in production where a product's sales are equal to its production expenses. The number of units that must be sold of a product in order to pay fixed and variable manufacturing expenses is revealed by break-even analysis. A financial ratio known as the margin ratio compares gross sales revenues of a good or service to the cost of producing or delivering that good, also known as the cost of goods sold
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if we added the total value paid at each stage of production, we would be double since we would be including previous values already counted.
We would be double counting since we would be including previous values already counted, if we added the total value paid at each stage of production.
Total value can be described as the sum of all expenditure liable to be incurred (such as installation, breakdown, maintenance, consumables, and final disposal) plus the purchase price of an acquisition. Total economic value (TEV) can be described as a concept in cost–benefit analysis that refers to the value derived by people from a natural resource, a man-made heritage resource or an infrastructure system, compared to not having it.
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control activities include a. risks faced by the entity from new technology b. authorization of purchases of new equipment c. market share data d. the control environment
Control activities include the control environment.
So, the correct option is D.
A control environment is composed of the organizational structure, procedures, guidelines, and standards used by an institution to uphold control throughout the company. The board of directors and senior management of a corporation define the expectations of standards of behavior inside the firm and form the company culture, which is also referred to as "the tone at the top."
Establishing an internal control environment is the first step for every organization and a part of control activities. It has been suggested that five factors—vision, skills, incentives, resources, and a plan—are required to successfully implement change. Confusion results from reform efforts without a clear vision. According to experience, a lack of knowledge, motivation, tools, or a strategy will lead to worry, resistance, annoyance, and failure.
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in the context of organizational decisions at the strategic management level, decisions are often used in deciding the plant location of an organization.
In the context of organizational decisions at the strategic management level, structured decisions are often used in deciding the plant location of an organization.
What are structured decisions?Structured decision-making is a method for conducting a thorough and systematic study of natural resource management choices.
SDM is a basic collection of principles and useful procedures based on decision theory and risk analysis, rather than a rigorously mandated method to problem resolution.
Decisions that are unstructured need the decision maker to contribute judgment, appraisal, and insights into the problem description.
Structured decisions, on the other hand, are recurring and regular, and decision-makers may handle them efficiently by following a specific protocol.
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raphael is an advertiser at a regional apparel retailer. a strategic initiative is to expand their brick-and-mortar presence to new locations next year. which part of amazon brand analytics would be most useful for him to review?
Geographic sales metrics would be most useful for him to review. This report assists visitor in locating insights based on geography. Users can recognize and react to top geographical trends quickly.
Geographic Sales Insights
This report assists visitor in locating insights based on geography. Users can recognize and react to top geographical trends quickly. The report includes information on the state, town, and ZIP code where your products were shipped. For a variety of reasons, differences between reports fragmented or clustered by geographic area and reviews without such segments or groups are to be expected. Some metrics, for example, may not be attributed to a specific geographical area, visits may not be included within small geographic areas, and spam filtering is not obtainable for reports segmented by geographic areas.
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You’ve decided to give the department with the most participation in the united way campaign a pizza party. When you ask your supervisor for the funding for the pizza, what reason do you give to support your decision?.
The reason that can be given to the supervisor for supporting your decision can be goals motivate employees.
Reaching a goal for which the employees will be rewarded always acts as a motivational source for the employees.
In the case above, if the employees of a department know that they will be given a reward such as a pizza for reaching a goal, they will function better to achieve that goal.
Hence you can ask your supervisor for a pizza party by saying that the goal that will be rewarded by pizza will help in motivating the employees.
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You’ve decided to give the department with the most participation in the united way campaign a pizza party. When you ask your supervisor for the funding for the pizza, what reason do you give to support your decision?.
Goals can be a source of motivation for employees, especially when they come with rewards, like the pizza party in this example. This is the justification you give for your choice.
Setting goals helps employees stay motivation for employees because, if they succeed, they justification will receive recognition and rewards. This in turn inspires the other staff members and contributes to the expansion of the company. Goals and Motivation There is a strong relationship between goals and motivation.
One of the most influential and useful motivation for employees of motivation is the theory of goal-setting. In fact, it received the highest ranking (out of 73 ideas) in a survey of justification organizational behavior scholars (Miner, 2003). Setting goals is strongly associated with performance increases, according to the idea, which has received support from over 1,000 studies involving individuals from the blue-collar to the research and development industries.
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on december 28, 2024, tristar communications sold 15 units of its new satellite uplink system to various customers for $10,000 each. the terms of each sale were 3/15, n/30. tristar uses the gross method to account for sales discounts. in what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on january 6, 2025? by how much?
In 2024, Income before tax will be reduced by $1500 and In 2025, Income before tax will be reduced by $6000.1.
In 2024, Income before tax will be reduced by $1500 = ( 15 units × $10,000 × 1% as paid with in 10 days) = $15002. In 2025, Income before tax will be reduced by $6000 =( 30 units × $20,000 × 1% as paid within 10 days) = $6000 Taxes are compulsory contributions that a government agency, whether local, regional, or federal, imposes on people or businesses.
Public works and services like roads and schools, as well as programmes like Social Security and Medicare, are funded by tax income. In economics, taxes fall on whoever bears the cost of the tax, whether this is the taxed entity, such as a business, or the final users of the items produced by the business. Payroll taxes, federal and state income taxes, and sales taxes are just a few of the taxes that need to be taken into account from an accounting standpoint.
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company a accounts for its investment in subsidiary using the equity method. company b uses the initial value method. both companies have intra-entity gross profits in their consolidated inventories from upstream sales. comparing exhibits 5.8 and 5.6, how are the final consolidated totals affected by the investment accounting method choice?
Final consolidated totals are not affected by the investment accounting method choice.
The guidelines a business adheres to while disclosing revenues and costs are referred to as its accounting technique. The two main accounting techniques are accrual accounting, which is typically used by businesses, and cash accounting (generally used by individuals).
A business uses the investment accounting (equity) method as an accounting approach to record the earnings made by its investment in another business. The investor firm declares the revenue generated by the other company on its income statement using the equity method of accounting, in a proportional amount to the equity stake it has in the other company.
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to be a professional property manager of a large apartment complex, one would need to know about all of the following except: select one: a. property maintenance. b. property insurance. c. human relations. d. appraisal techniques.
To be a professional property manager of a large apartment complex, one would need to know about all of the following EXCEPT: appraisal techniques.
The capacity of the company to appraising productivity and optimize the processes to provide better results depends critically on how well an employee's performance is evaluated. These are frequently yearly assessments when an employee's performance is evaluated in relation to a formalized set of intended outcomes or objectives.
Performance appraising help to determine who is performing well and who is not, as well as the causes of their poor performance. Organizations utilize a variety of both conventional and cutting-edge techniques to evaluate employee performance.
Using the right performance appraisal techniques may also assist employers better grasp the status of their staff members' talents, capabilities, and potential weak points.
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In a free enterprise system, what drives individuals to risk their savings in a business venture? question 6 options: the idea of failure the desire to pay taxes the potential for profit the increase in stock prices
In a free enterprise system, what drives individuals to risk their savings in a business venture is the potential for profit the increase in stock prices.
What is free enterprise system?A free enterprise system can be described as the economic system in which the business activities is not been controlled by the government of the country.
It should be noted that in this system government there is usually a few restrictions from the government on the types of business activities that is been engaged by the people o the country so that they can make profit.
Therefore, last option is correct.
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a property tax millage rate is calculated by: a. dividing the required tax levy by the total assessed value of property b. multiplying the required tax levy by the total assessed value of property c. dividing the required tax levy by the net assessed value of property d. multiplying the required tax levy by the net assessed value of property
C. The needed tax levy is divided by the property's net assessed value to determine the millage rate.
A millage rate, which is a multiplier attached to a property's value, is used to calculate the local property taxes. It means one $1 for every thousand dollars that a property's assessed value is. The total taxable value of the property and the millage rate are used to compute each individual property tax amount.
The English word "millage" derives from the Latin "millesimum," which signified 1/1000 or thousandth. A millage rate is also known as an effective property tax rate or mill rate. The property tax is calculated using the millage rates imposed by various governmental bodies.
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