shelby company has a beta of 1.05, the expected return on the market is 10 percent, and the risk-free rate is 3.8 percent. what is the expected return for shelby stock?

Answers

Answer 1

Expected return is 10.31%. Shelby company will find the expected return for stock with the help of Capital Asset Pricing Model (CAPM).

There is a formula provided by the Capital Asset Pricing Model that may be used to determine the anticipated rate of return from a common stock. Return expected = Risk-free rate + {Beta * (Market return - Risk-free rate)}

Return expected = 3.80% + {1.05 * (10% - 3.80%)}, Return expected = 3.80% + (1.05 * 6.20%), Return expected = 3.80% + 6.51%, Return expected = 10.31%. Hence, the expected return of the common stock will be 10.31 percent.

The association among systemic risk, or the general dangers of trading, and expected return for investments, particularly equities, is described by the Capital Asset Pricing Model (CAPM). The CAPM was created as a tool to quantify this systematic risk.

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Related Questions

samuelson's has sales of $317,000, a profit margin of 8.6 percent, an equity multiplier of 1.8, and total debt of $144,400. what is the return on equity? a) 15.48 percent b) 14.46 percent c) 7.05 percent d) 15.10 percent e) 11.25 percent

Answers

Samuelson's has sales of $317,000, a profit margin of 8.6 %, assets ratio of 1.8, and total debt of $144,400. The return on equity 15.10%.

Using a formula to calculate- Equity multiplier =Total Asset ÷ Total Asset -Total debt

1.8 Total Asset- 259,920 =Total Asset

Total asset =$324,900

Return on equity =Profit margin ×Total asset turnover × equity multiplier

Return on equity =Profit margin ×sales/Total Asset ×equity multiplier

=0.086×317,000÷324,900×1.8

=15.10%

So the correct option is (d) 15.10 Percent.

On an income statement, a company's profit is broken down into three categories, starting with gross profit and moving up to net profit, which is the most complete. Operating profit is somewhere between these two. The profit margin for each of the three are determined by dividing the profit amount by the revenue and multiplying the result by 100.

Therefore correct option is (d).

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i buy a perpetuity from a bank today for $200. in five years, after collecting each year’s payment, i then offer to sell the perpetuity back to the bank. if interest rates have risen, should the value of the perpetuity rise or fall?

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If then offer to sell the perpetuity back to the bank. if interest rates have risen, the value of perpetuity will fall

Given that the present value today of perpetuity=$200

You sell the perpetuity after 5 years to bank with interest rates risen.

Formula for calculating present value of perpetuity:

Present value of perpetuity=yearly cashflows/Interest rate

Here, yearly cashflows will change and decline due to increase in the interest rates.

So, if both the variables (yearly Cashflows and Interest rate) are different from 5 years back,  then the present value will also be different now from 5 years back. And due to decline in cash flows, the value of perpetuity will fall.

Thus, the perpetuity be worth at that time is less than $200

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identify the necessary elements suggested by economist antonio argandoña in imposing moral requirements on the information and data on which new technology is dependent. (check all that apply.)

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Necessary elements suggested by economist Antonio Argandona were  respect for privacy, truthfulness and accuracy, accountability and respect for assets and security rights.

Antonio Argandona, an economist, suggests that moral requirements be imposed on the information and data on which new technology is based.

-Respect for privacy: The person who receives or acquiring information must consider the ethical boundaries.

-Honesty and accuracy: The person receiving or gathering information must be objective.

-Accountability

-Respect for property and the right to safety: Everyone's safety should be guaranteed.

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notices in her neighborhood promising to pay $1,000 for the return of her missing dog, jagger. seeing the notice, selena finds the missing dog and returns it to halsey. what type of contract is this?

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This contract is an example of a unilateral contract.

What is contract?
A contract is an enforceable legal arrangement that establishes, details, and regulates the rights and obligations of the parties. The exchange of goods, services, money, or even a promise to transmit any of those at a later time are common components of contracts. The injured party could seek judicial remedies like damages or rescission in the event of a contract breach. Agreements must be kept, which is the foundation of contract law, a branch of the law of obligations that deals with contracts. Like other regions of private law, contract law differs from jurisdiction to jurisdiction. Common law jurisdictions, civil litigation jurisdictions, and mixed law jurisdictions, which combine elements both of common and civil law, can be used to categorise the various systems of contract law.

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beginning inventory consists of 4 items at $10 each. during the month, the company purchased 3 items for $11 each and it sold 3 items. using first-in, first-out, the 3 goods sold are assumed to be . multiple choice question.

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The beginning inventory consists of 4 items at $10 each. during the month, the company purchased 3 items for $11 each and it sold 3 items. using first-in, first-out, the 3 goods sold are assumed to be $30 that is option E

First in, first out (FIFO) is an acronym used in computer science and systems theory to describe a way of managing the modification of a data structure, frequently a data buffer, where the oldest (first) entry, or "head" of the queue, is processed first.

This sort of processing is comparable to serving customers in a line in the order they arrive at the back of the line, or on a first-come, first-served (FCFS) basis.

Given Data:

Beginning Inventory = 4 times at $10 each

3 new items were purchased for $11 each

Sold = 3 items (FIFO)

3 of the units sold under FIFO are from the initial stock.

Price of products sold = 3 x $10 = $30.

Therefore, the price of the products sold is $30. (Option E)

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COMPLETE QUESTION:

beginning inventory consists of 4 items at $10 each. during the month, the company purchased 3 items for $11 each and sold 3 items. using first-in, first-out, the 3 goods sold are assumed to be:

A) $31 (rounded to the nearest dollar)

B) An indeterminable amount given the specific items sold was not identified.

C) $33

D) $31.50

E) $30

transaction account name debit credit 1. accounts receivable 7,400 service revenue 7,400 2. supplies 1,800 accounts payable 1,800 3. cash 9,200 accounts receivable 9,200 4. advertising expense 1,200 cash 1,200 5. accounts payable 2,700 cash 2,700 6. cash 1,000 deferred revenue 1,000

Answers

The journal entry are following given the balance of each item at beginning and transaction in the accounting year.

Journal entries of transaction are given here:

Cash account-

Balance b/f dr. ($2100)

account receivable dr. ($9,200)

deferred revenue dr. ($1,000)

   To Advertising expenses ($1200)

    To accounts payable (4$2,700)

    To Balance c/d ($8,400)

Accounts receivable:

Balance b/f dr. ($3,200)

service revenue dr. ($7,400)

    To cash ($9,200)

    To balance b/d ($1400)

Service revenue:

Balance b/f dr. ($7,400)

   To accounts receivable ($7,400)

Accounts payable:

Balance b/f dr. ($2,500)

cash dr. ($2,700)

   To supplies ($1,800)

    To balance c/d ($3,400)

Deferred revenue:

Balance b/d dr. ($200)

         to cash ($1000)

          to balance c/d ($1,000)

Advertising Expense:

Cash a/c dr. (1,200)

 To balance c/d ($1,200)

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Business markets differ in many ways from consumer markets. The main differences are in​ ________, __________, and​ __________.

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Business markets differ in many ways from consumer markets. The main differences are in​ Market structure and​ demand, the nature of the buying​ unit, and the types of decisions.

Based on the end market served, ownership, industry, and level of technology, business markets segment their enterprises. Contrarily, consumer marketplaces divide their clientele according to geographic, behavioral, psychographic, and demographic traits.

Demand in business markets is inelastic and erratic. Many commercial items' overall demand is not significantly impacted by price fluctuations. Compared to the demand for consumer goods and services, the demand for many corporate goods and services tends to fluctuate more often.

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a product sells for $200 per unit, and its variable costs are 65% of sales. the fixed costs are $420,000. what is the break-even point in sales dollars?

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The break-even point in sales dollars is $1,200,000 if the selling price is $200 per unit and the variable costs are 65% of sales.

The Break-even point is a term that can be described as the point at which the total cost is equal to the total revenue.

We can use the following formula to determine the break-even point for this problem;

break-even point = fixed cost ÷ contribution margin ratio

The contribution margin ratio for this problem can be calculated as follows;

contribution margin ratio = 100% - 65%(variable cost) = 35%

Converting this percentage into decimal;

contribution margin ratio = 35 ÷ 100 = 0.35

Substituting the values in the formula for the break-even point;

break-even point = 420,000 ÷ 0.35

break-even point = 1,200,000

Therefore, the break-even point in sales dollars is calculated to be $1,200,000

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maggie is most efficient at making beaded necklaces, while angie is most efficient at producing clay bowls. they make the products they are most efficient at making and trade with each other. this is an example of:

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Maggie is most efficient at making beaded necklaces, while Angie is most efficient at producing clay bowls. they make the products they are most efficient at making and trade with each other. this is an example of specialization.

In economics, the belief of ceteris paribus, a Latin word meaning "with different matters the same" or "different matters being same or held constant," is crucial in figuring out causation.  It allows isolate a couple of unbiased variables affecting a based variable product.

Macroeconomists have a look at subjects together with GDP (Gross Domestic Product), unemployment (which includes unemployment rates), countrywide income, rate indices, output, consumption, inflation, saving, investment, energy, global trade, and global finance.

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a machine has a cost of $16,200, an estimated residual value of $4,140, and an estimated service life of eight years. the machine is being depreciated on a straight-line basis. at the end of the second year, what amount will be reported for accumulated depreciation? (do not round your intermediate calculations. round annual depreciation amount to the nearest dollar amount.)

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If a machine has a cost of $16,200, an estimated residual value of $4,140, and an estimated service life of eight years. the machine is being depreciated on a straight-line basis. at the end of the second year, the amount that will be reported for accumulated depreciation is $3,015.

Accumulated depreciation

We would be making use of this formula to determine the accumulated depreciation

Accumulated depreciation = [ Cost of machine - Estimated residual value / Estimated service life ] × Number of years

Where:

Cost of machine = $16200

Estimated residual value = $4140

Estimated service life = 8 years

Number of years = 2 years

Let plug in the formula

Accumulated depreciation = [ ($16,200 - $4,140) / 8 years ] × 2 years

Accumulated depreciation = $1,507.5 per year × 2 years

Accumulated depreciation = $3,015

Therefore we can conclude that the accumulated depreciation is the amount of $3,015.

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Business markets differ in many ways from consumer markets. The main differences are in​ ________, __________, and​ __________.

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Business markets differ in many ways from consumer markets. The main differences are in Market structure and​ demand, the nature of the buying​ unit, and the types of decisions and the decision process involved.

The term "consumer markets" refers to a market where people acquire goods or services for their own use rather than to resell. Products that individuals use on a daily basis make up the majority of the goods sold in consumer markets. Using a business markets is a strategy used by a corporation to offer goods or services to a certain clientele. Business markets frequently enable transactions between businesses when one intends to reuse or resell the goods or services of another. There are several attributes of a consumer market. Age, gender, occupation, household income, and race are examples of demographic factors. Population density, region, and climate are examples of geographic characteristics.

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yolanda is your client. with her current level of taxable income, she is paying tax at 24% marginal rate. she received $2,000 in qualified dividends this year. what rate of tax do you expect that yolanda will pay on her dividends?

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The dividends will be taxed at 15%.

According to the Internal Revenue Code of the United States, qualified dividends are ordinary dividends that satisfy certain requirements in order to be taxed at the lower long-term capital gains rate as opposed to the higher tax rate for an individual's ordinary income.

Qualified dividend rates range from 0% to 23.8%. Prior to its passage, the Jobs and Growth Tax Relief Reconciliation Act of 2003 did not distinguish between qualified and regular dividends; instead, all dividends were either exempt from taxation or subject to the same rate of taxation.

The payee must have owned the shares for a sufficient amount of time, typically 60 days for common stock and 90 days for preferred stock, in order to be eligible for the qualified dividend rate.

Taxation on the eligible dividends is advantageous. The dividends will be subject to 15% tax because Yolanda is in the 24% tax bracket.

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the third purpose of government regulation is to​ . question content area bottom part 1 a. punish companies for unlawful behavior b. regulate and constrain companies c. protect consumers from unfair international trade d. protect companies from each other e. protect the interests of society against unrestrained business practices

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The third purpose of government regulation is to​  protect the interests of society against unrestrained business practices.

What is meant by government regulations?


This is the term tat is used to refer to all of the ways that the government of a nation would have to conduct the market that is in an area. That is the rules and the regulations that the government of a place would put so as to take care of the market situation and businesses in the area.

There are several reasons why the government of a place would have to carry out regulations. The reasons are:

In order to prevent monopoly in the areaTo take care of all international businessesTo protect the interests of the people so that they do not encounter bad practices.To regulate the companiesTop protect the people from the international practices that are seen to be unfair.

Therefore we would conclude by saying that the third purpose that the government of a nation would have is to protect the interest of the people of the nation.

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readers will usually interpret a business message containing the repeated use of the we-voice as multiple choice question. pushy. inflexible. insincere. team-focused.

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Readers will usually interpret a business message containing the repeated use of the we-voice as team-focused.

A business is described as an organization or enterprising entity engaged in business, industrial, or professional sports. companies can be for-income entities or non-profit agencies. commercial enterprise sorts range from restricted liability groups to sole proprietorships, businesses, and partnerships.

The definition of business is an profession or trade and the acquisition and sale of services or products to make a earnings. An instance of enterprise is farming. An instance of business is a house sale.

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based on the production possibility frontier, when a country decides to specialize in the production of one item, it is most likely to blank the level of production of that it

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Based on the production possibility frontier, when a country decides to specialize in the production of one item, it is most likely to Increase the level of production of that item.

A production-possibility frontier (PPF), production possibility curve (PPC), production possibility boundary (PPB), or transformation curve/border/frontier is a curve that depicts different combinations of the quantities of two items that can be produced using the available resources and technology.

It is a graphical representation of all the conceivable options of output for two products that can be created utilizing all factors of production, where the available resources are completely used. The opportunity cost (or marginal rate of transformation), productive efficiency, and resource scarcity are only a few of the economic ideas that a  production-possibility frontier (PPF) highlights (the fundamental economic problem that all societies face).

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jumpstarting your imagination about entrepreneurial opportunity can be done by asking yourself and others questions like . group of answer choices all of these what would it look like? what problem have you encountered in everyday life and thought,

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Jumpstarting your imagination about entrepreneurial opportunity can be done by asking yourself and others questions like - All the given option is correct. that means the correct option is (E).

What is entrepreneur?
Entrepreneurs
are people who launch new businesses, bearing the majority of a risks as well as enjoying the majority of the rewards. Beginning a company is a practise of entrepreneurship. The entrepreneur is frequently seen as an inventor who creates original concepts for products, services, businesses, and operational procedures. Because they possess the skills and motivation to anticipate needs and market workable new ideas, entrepreneurs are crucial to the health of any economy. Entrepreneurship that is successful in assuming this same risks associated with starting a business is rewarded with cash, fame, and chances for future growth. Losses and a diminished market presence result from entrepreneurial failure for those involved.

Therefore, the correct option is (E)
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xyz international is planning to increase its capacity to overcome the bottlenecks in its production line. the firm plans to do this by the addition of a new machine. the company received proposals for this new equipment from two vendors. the cost revenue data for the two machines proposed by the vendors is as follows. the revenue that will be generated from the sale of each product produced by the machines is $25 per unit. what is the breakeven volume for machine a?

Answers

Let the breakeven volume for machine A be represented by Q. At the breakeven volume,

Total costs = Total Revenue

​​​​​​​where,

Total costs = Fixed cost + (Variable cost x Number of units)

Total revenue = Revenue per unit x Number of units

For Machine A:

Total costs = $80,000 + $10Q

Total revenue = $25Q

At the breakeven volume,

Total costs = Total Revenue

$80,000 + $10Q = $25Q

$15Q = $80,000

Q = 5,333.33 units

The breakeven volume for machine A is  Between 5300 and 5500 units.

Say you personal a toy shop and want to locate your damage-even point in devices. Your fixed price general is $6,000, your variable charges in step with the unit are $25, and your income fee according to the unit is $50. Plug your totals into the smash-even method to find out your wreck-even factor in gadgets. You need to sell 240 devices to interrupt even.

The break-even factor is the point at which general cost and overall revenue are identical, which means there is no loss or benefit to your small enterprise. In other phrases, you've reached the extent of manufacturing at which the costs of production equal the revenues for a product.

Wreck-even evaluation is an exceptionally useful device for a commercial enterprise and has some great benefits: it suggests how many products they want to promote to ensure earnings. It indicates whether a product is worth promoting or is too volatile. It shows the number of sales the business will make at each degree of output.

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express delivery company (edc) is considering outsourcing its payroll department to a payroll processing company for an annual fee of $220,600. an internally prepared report summarizes the payroll department’s annual operating costs as follows: supplies $ 30,600 payroll clerks’ salaries 120,600 payroll supervisor’s salary 58,600 payroll employee training expenses 10,600 depreciation of equipment 20,600 allocated share of common building operating costs 15,600 allocated share of common administrative overhead 28,600 total annual operating cost $ 285,200 edc currently rents overflow office space for $36,600 per year. if the company closes its payroll department, the employees occupying the rented office space could be brought in-house and the lease agreement on the rented space could be terminated with no penalty. if the payroll department is outsourced the payroll clerks will not be retained; however, the supervisor would be transferred to the company’s human resource management department. as a result of this transfer, the company would discontinue its efforts to hire a new human resource manager that it expected to pay an annual salary of $56,600. the payroll department’s equipment would be transferred to other departments within the company to replace outdated equipment that would be recycled for zero salvage value. required: what is the financial advantage (disadvantage) of outsourcing the payroll department?'

Answers

Because it is less expensive than outsourcing, the company should replace the employee. Outsourcing is the process of completing business activities and tasks with the assistance of third parties.

The company must consider the following significant factors when making the decision:

The company should think about whether the third-party/payroll processing company will be dependable and on time.

Furthermore, the company must ensure that the associated liability for state and federal regulations is transferred to the payroll processing company.

As it is less expensive than outsourcing, the company should replace the employee.

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luz is an employee of motor parts, an auto parts store. on the orders of his employer, he switches trademarks on parts that come into the store to be sold to consumers. this is most likely

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This is most likely a fake. It is because the motor part's brand is exchanged so that the quality does not match the brand.

A trademark is a type of Intellectual Property Rights consisting of a recognizable sign, design or expression to identify a product or service that is distributed to the market. This trademark is what makes a product or service unique and different from other similar businesses and makes it easier for buyers or customers to recognize the product. Companies that register their trademarks can be legally protected. That way, no other party can use the same name/sign/symbol as what has been used.

Trademarks that have been registered have a valid period, in Indonesia, trademark protection is valid for 10 years from the date of submission. Trademark protection can be extended in accordance with applicable legal provisions.

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How do social trends affect a pharmacy? I need 6 points

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Language, time, lines, shyness, the price of the medication, interpersonal relationships, and the pharmacist's age and sex are the key barriers to effective patient-pharmacist dialogue.

What is the importance of social pharmacy?

Investigating issues and topics related to pharmacy practice and drug use is the main goal of social pharmacy research. It is a hybrid field that examines all facets of pharmacy practice by combining theories and methodologies from various humanistic and social scientific disciplines.

In order to provide pharmaceutical treatment, pharmacists must overcome a variety of difficulties, including ethical, financial, clinical, and legal issues, which are the major roadblocks in the delivery of healthcare.

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beginning inventory was $5,000. during the month, the company purchased an additional $25,000 of inventory. at the end of the month, ending inventory was $10,000. cost of goods sold equals .

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Beginning inventory was $5,000. during the month, the company purchased an additional $25,000 of inventory and sold goods that cost $20,000.

Ending inventory was

value of goods sold=beginning inventory+Purchases-ending inventory

20000=5000+25000-finishing stock

finishing inventory=(5000+25000-20000)

=$10000.

The 4 maximum normally used inventory kinds are uncooked materials, paintings in the process (WIP), finished goods, upkeep, repairs and overhauls (MRO). knowing the nature of your inventory will help you manipulate your stock better and smarter.

the process of determining whether there are any protected class groups whose proportion in a given job category within a company is substantially different from their proportion in the relevant labor market is called:

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The process of determining whether there are any protected class groups whose proportion in a given job category within a company is substantially different from their proportion in the relevant labor market is called utilization analysis.

An investigation of a workforce's demographics is known as a utilization analysis, also known as a workforce utilization review. The goal is to determine if a business employs a certain groups (such as women, minorities, etc.) at a rate that is consistent with the availability of the workforce or not (the estimated number of people in designated groups who are available for work).  

Utilization analysis is crucial because it guarantees employees and certain groups equitable access to and access to opportunities. Not to mention, it motivates businesses to maintain their diversity and inclusion initiatives in accordance with the laws and guidelines overseen by the Equal Employment Opportunity Commission (EEOC).

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Alex purchases a computer from dell to be delivered via fed ex. Dell delivers the computer to fed ex to be shipped to alex. During the delivery, the fed ex driver is having a bad day and just throws the boxes out the window of the delivery truck rather than setting the box by the front door as is standard practice. While throwing the computer it is damaged. Would dell be responsible for the damage to the computer?.

Answers

In the above case, Dell will not be held responsible for any damage to the computer because the title transfers to the buyer once the good is delivered to a common carrier.

When a company like Dell, sends over its product either through delivery by a common carrier such as FedEx or the buyer itself, the company will change the title transfer to the buyer. Hence, in no case, will Dell be responsible for the damage to the computer after it has been sent for delivery.

One needs to consult companies such as FedEx to know if they claim responsibility for a product if damaged at the time of delivery. Many carrier companies do not have this policy and usually, the buyer is accountable for the damage even if it is made during the delivery.

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e. if the real gdp in 2017 was $15 trillion, and its prices represented a 40% increase from the base year, what must the nominal gdp have been? show your work.

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Real GDP in 2017 = $15 trillion Price rise by 40% from the base year hence, GDP deflator for 2017 = 140 Nominal GDP = (Real GDP * GDP Deflator)/100 = ($15 trillion * 140) / 100 = $21 trillion

Real GDP measures a nation's gross domestic product after accounting for inflation. Compare this to nominal GDP, which calculates the size of the economy in current prices without accounting for inflation. Most economists concur that a Real GDP growth rate of 2% to 3% is optimum. 5 To sustain a natural rate of unemployment, growth must be at 3%. However, a rapid rate of expansion is undesirable. That will cause a bubble to form, and when it busts, a recession will result. Gross domestic product (GDP) that has not been adjusted for inflation is defined as  nominal GDP expressed in current prices. The values of all the commodities and services produced during the current reporting period are expressed to obtain current price estimates of Nominal GDP.

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a firm should accept independent projects if? a. the pi (profitability index) is < 1. b. the npv (net present value) is > 0. c. the irr (internal rate of return) is < wacc (weighed average cost of capital). d. the discounted payback is greater than the payback.

Answers

Firms should accept independent projects if b. the NPV (net present value) is > 0.

When should a company accept independent projects?

There are several criteria that a company should look into when they want to accept independent project and one of them is the Net Present Value or NPV.

The Net Present Value shows the present value of the cash inflows to the company as a result of the project, less the cash outflows and original investment into the project. If the Net Present Value for both projects is greater than 0, then the independent projects should both be chosen.

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An automobile salesperson uses ________ when it accesses a mobile system to obtain the latest information on consumer demand for electric vehicles.

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An automobile salesperson uses social media when it accesses a mobile system to obtain the latest information on consumer demand for electric vehicles.

What is social media?

Some firms use social media to raise brand awareness, while others utilize it to increase website traffic and sales. Social media may help you build a community, increase brand engagement, and give your customers a way to contact you for customer service.

Social media may help you build relationships with your customers, drive more traffic to your website, strengthen the bond between your brand and your customers, and establish your credibility.

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assume that brittany acquires a competitor's assets on september 30th of year 1 for $350,000. of that amount, $300,000 is allocated to tangible assets and $50,000 is allocated equally to two §197 intangible assets (goodwill and a one-year noncompete agreement). given that the noncompete agreement expires on september 30th of year 2, what is brittany's amortization deduction for the second year? (round final answer to the nearest whole number.) multiple choice $3,333 $1,667 $2,917 $0 none of the choices are correct.

Answers

On September 30th of year 2, the non-compete agreement expires. The second year's amortisation cost for Brittany is $3,333.

The full-month custom is followed. A 197 asset's remaining basis is added to the other 197 assets bought at the same time if it is sold before being fully recovered. The recovery time for 197 assets is 180 months. $3,333 ($50,000 (assigned $)/180) x 12 = amortization. It appears as though the asset has never expired.

An agreement is the means by which two or more persons express their shared assent. It is a coming together of the thoughts with a shared objective through offer and acceptance. A demonstration of agreement can be made through words, deeds, or in rare instances even silence. The accounting procedure known as amortization can be used to periodically decrease the book value of a loan or an intangible asset over a specific length of time. The main goal of loan amortization is to spread out loan payments over time. When it comes to an asset, amortization is comparable to depreciation. The cost of an intangible asset is spread out over the asset's useful life via the amortization process. Expensing a fixed asset for its anticipated depreciation is the process of depreciation.

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when comparing the adjusting process under the perpetual and the periodic inventory systems, a.the ending inventory is determined by a physical count under both systems. b.no entry is made for estimated returns inventory under the periodic inventory system. c.the cost of goods sold account is reduced by the cost of estimated returns inventory for the current year under the perpetual inventory system. d.the inventory shrinkage adjustment is the same under both systems.

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The ending inventory is determined by a physical count under both systems, comparing the adjustment procedure under the perpetual and periodic inventory methods.

The process of tracking stock, suppliers, and sales along the full supply chain is known as an inventory system. Companies utilize inventory systems to make sure they are aware of exactly what products are on hand and where they are. To assist businesses in organizing and keeping track of their stock, inventory methods give accurate records of new and returned goods as they enter or leave the warehouse. Additionally, they perpetual can keep track of information about the quantity sold, the cost per unit, the serial number, the lot number, the dates of purchase and manufacturing.

A company's ability to accurately manage and track  perpetual their inventory with the aid of inventory management systems can help avoid overstocking or understocking of their products.

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assume that investment does not depend on the interest rate. a reduction in the money supply will cause which of the following for this economy? a) no change in the interest rate b) no change in output c) a reduction in investment d) an increase in investment

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If money supply gets reduced in the economy, it will cause a reduction in the investment because there will be lower amount of money in the hands of people. So, the correct answer is (c).

The total amount of money and other liquid assets in an economy on the measurement date is termed as the money supply. Both cash and savings that can be obtained virtually as readily as cash are generally comprised of the money supply.

Through a mix of their central banks and treasuries, governments issue coin and printed money. By setting reserve holding limits on banks, regulating how to extend credit, and managing other money problems, banking institutions have an influence on the amount of money supply with the general people. Higher money supply in economy leads to higher investment whereas, lower money supply will cause lower investment.

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suppose manufacturers introduce a new model car to replace a car currently included in the cpi basket. the price of the new car is 10 percent higher than the di

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In this situation the CPI will tend to overstate inflation as a result of quality adjustment bias. The rapid advancement of technology causes product prices to modify because it impacts product quality improvement.

Inflation will be overstated to the degree that the CPI does not account for improving quality in the products and services people use. This type of overestimation is referred to as the quality adjustment bias.

The rapid advancement of technology causes product prices to modify because it impacts product quality improvement. Because they increase price fluctuations in an economy, substitution and quantity bias eventually cause inflation to be overstated.

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Suppose manufacturers introduce a new model car to replace a car currently included in the CPI basket. The price of the new car is 10 percent higher than the discontinued model, but the new car has additional safety features and amenities. In this situation the CPI will tend to ______ inflation as a result of ______ bias.

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