Finance

The trait that distinguishes auditors from accountants is the a. auditor’s education beyond the Bachelor’s degree. b. auditor’s ability to interpret FASB Statements. c. auditor’s ability to interpret accounting principles generally accepted in the United States. d. auditor’s accumulation and interpretation of evidence related to a company’s financial statements. What is the correct answer ?

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The trait that distinguishes auditors from accountants is the a. auditor’s education beyond the Bachelor’s degree. b. auditor’s ability to interpret FASB Statements. c. auditor’s ability to interpret accounting principles generally accepted in the United States. d. auditor’s accumulation and interpretation of evidence related to a company’s financial statements.What is the correct answer ? EXPERT …

The trait that distinguishes auditors from accountants is the a. auditor’s education beyond the Bachelor’s degree. b. auditor’s ability to interpret FASB Statements. c. auditor’s ability to interpret accounting principles generally accepted in the United States. d. auditor’s accumulation and interpretation of evidence related to a company’s financial statements. What is the correct answer ? Read More »

six months ago, Todd, David and stacey joined a large, prestigious accounting firm in Houston. on paper, these three novices look similar and each graduated from a top MBA program. all three were assigned to work for the same client, a national restaurant chain. they quickly became friends and often lunched together. one day, senior manager in the firm stopped by the conference room where todd and david were working to ask if hey would like to join him for lunch with stacey.

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You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 5.1 of the text. Suppose the price of a put option on a share of the index fund with exercise price of $110 and time to expiration of 1 year is $12, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55 in a 1-year CD and simultaneously buying a call option on the stock market index fund with an exercise price of $110 and expiration of 1 year.

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You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 5.1 of the text. Suppose the price of a put option on a share of the index fund with exercise price of $110 and time to expiration of 1 year is $12, and suppose the risk-free …

You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 5.1 of the text. Suppose the price of a put option on a share of the index fund with exercise price of $110 and time to expiration of 1 year is $12, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55 in a 1-year CD and simultaneously buying a call option on the stock market index fund with an exercise price of $110 and expiration of 1 year. Read More »

Two firms in a duopoly each have the option of advertising or not advertising. Assume that for both firms their respective products and brands are well known (e.g. soft drink brands) so advertising is not essential. Also advertising costs money. However, the risk is if one firm decides not to advertise but the other does, then the rival who advertises dominates the market for that year. The profit payoffs for each in millions of dollars of the choice combinations are shown in the decision matrix in the Figure below.

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Two firms in a duopoly each have the option of advertising or not advertising. Assume that for both firms their respective products and brands are well known (e.g. soft drink brands) so advertising is not essential. Also advertising costs money. However, the risk is if one firm decides not to advertise but the other does, …

Two firms in a duopoly each have the option of advertising or not advertising. Assume that for both firms their respective products and brands are well known (e.g. soft drink brands) so advertising is not essential. Also advertising costs money. However, the risk is if one firm decides not to advertise but the other does, then the rival who advertises dominates the market for that year. The profit payoffs for each in millions of dollars of the choice combinations are shown in the decision matrix in the Figure below. Read More »

1) A firm is considering replacement of an equipment, whose first cost is Rs. 4,000 and the scrap value is negligible at the end of any year. Based on experience, it was found that the maintenance cost is zero during the first year and it increases by Rs. 200 every year thereafter. (Compute for first 10 years of service to arrive at a conclusion) (a) When should the equipment be replaced if the discount rate is 0%? (b) When should the equipment be replaced if the discount rate is 12%?

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A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chickens. 55 of the children preferred hamburger and 20 preferred chickens. Set up a 2×2 contingency table using this information and answer the following questions:

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A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chickens. 55 of the children preferred hamburger and 20 preferred chickens. Set up a 2×2 contingency table using this information and …

A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chickens. 55 of the children preferred hamburger and 20 preferred chickens. Set up a 2×2 contingency table using this information and answer the following questions: Read More »

Conduct a Focus Group Discussion (FGD) among five of your friends in your neighborhood who are interested to have their own business in the future. The goal of your FGD is to generate new business ideas. Ask them what they have observed in the community or in other places that they have gone to so that they may have prospects on what are the products being bought or patronized which are not yet offered by other entrepreneurs in our locality.​

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Conduct a Focus Group Discussion (FGD) among five of your friends in yourneighborhood who are interested to have their own business in the future. The goal of yourFGD is to generate new business ideas. Ask them what they have observed in the communityor in other places that they have gone to so that they may …

Conduct a Focus Group Discussion (FGD) among five of your friends in your neighborhood who are interested to have their own business in the future. The goal of your FGD is to generate new business ideas. Ask them what they have observed in the community or in other places that they have gone to so that they may have prospects on what are the products being bought or patronized which are not yet offered by other entrepreneurs in our locality.​ Read More »

Demand function for real money balance is =700−3r , where r is the interest rate in percent. The money supply is 1600 and the price level is N$45 . a) Graph the supply and demand for real money balances. [6 marks] b) What is the equilibrium interest rate in the money market? [3 marks] c) Assume that the price level is fixed. What happens to the equilibrium interest rate if the supply of money is reduced from 1600 to 1300? [6 marks]

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EXPERT ANSWER Introduction Considering the information as we have, Explanation a. The supply and demand for real balances is given as shown b. At optimum we have, 700 – 3r* = 1600/45 = 35.56 So, r* = 221.48 c. Now we have, 700 – 3r* = 1300/45 = 28.89 So, r* = 223.7 Thus interest …

Demand function for real money balance is =700−3r , where r is the interest rate in percent. The money supply is 1600 and the price level is N$45 . a) Graph the supply and demand for real money balances. [6 marks] b) What is the equilibrium interest rate in the money market? [3 marks] c) Assume that the price level is fixed. What happens to the equilibrium interest rate if the supply of money is reduced from 1600 to 1300? [6 marks] Read More »

The Metalco Company desires to blend a new alloy of 40 percent tin, 35 percent zinc, and 25 percent lead from several available alloys having the following properties:

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The Metalco Company desires to blend a new alloy of 40 percent tin, 35 percent zinc, and 25 percent lead from several available alloys having the following properties: The objective is to determine the proportions of these alloys that should be blended to produce the new alloy at a minimum cost. a) Formulate a linear …

The Metalco Company desires to blend a new alloy of 40 percent tin, 35 percent zinc, and 25 percent lead from several available alloys having the following properties: Read More »