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enyata [817]
2 years ago
9

Why would an advocate of the efficient market hypothesis believe that even if many investorsexhibit the behavioral biases discus

sed in the chapter, security prices might still be set efficiently?
Business
1 answer:
Talja [164]2 years ago
6 0

Answer and Explanation:

an Advocate of EMH believes that investor are kin to analyze and uncover any new information which may generate greater returns on the investment. also for that purpose they are willing to spend time and resourses.

it acts as an incentive for them as they believe efficient pricing of security depends upon requirement of rigorously efficient market information.

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Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 670,000
Marina86 [1]

Answer:

a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)

  • net loss -$65,000

b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?

  • financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increase

Explanation:

total sales $670,000

- variable expenses $295,000

- fixed manufacturing expenses $246,000

- fixed selling and administrative expenses $194,000

net loss = $65,000

if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000

3 0
2 years ago
National defense is a good that is nonexcludable and nonrival in consumption. Suppose that instead of national defense being pai
ElenaW [278]

Answer:

Explanation:

find the attached document below

3 0
2 years ago
During the financial crisis of 2007-2008, the Fed engaged in lending to certain large non-bank financial firms in the private se
Delvig [45]

Answer: D. The Fed wanted to limit the inflation risk inherent among financial institutions.

Explanation: An alternative lender, or non-traditional lender, is a loan provider, often a short-term loan lender that is often not heavily regulated by state or federal agencies. ... Secured loans typically have lower interest rates than unsecured non-traditional loans because they minimize the lender's risk of loss.

6 0
2 years ago
Read 2 more answers
Dave Krug contributed $1,000 cash along with inventory and land to a new partnership. The inventory had a book value of $800 and
pav-90 [236]

Answer:

cash                 1,000 debit

inventory        2,000 debit

land                5,000 debit

note payable             3,000 credit

Krug capital Account 5,000 credit

Explanation:

The land and inventories will be accepted at his market value.

Along with cash this are assets which enter the partnership so they are debited.

The note payable decreases the Krug capital contribution. It is credited.

Krug capital account balance will be to complete the entry and make debit = credit.

6 0
2 years ago
Great Western Southern purchased $525,000 of equipment four years ago. The equipment is seven-year MACRS property. The firm is s
tester [92]

Answer: $153,782.70

Explanation:

The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.

In 4 years, the depreciation would be:

= Cost price * (4 year deprecation)

= 525,000 * (14.29% + 24.49% + 17.49% + 12.49%)

= $360,990

Book value :

= 525,000 - 360,990

= $164,010

Gain (loss) = Sale price - Book value

= 150,000 - 164,010

= ($14,010)

Tax payable = (14,010) * 27%

= ($3,782.70)

After-tax cash flow:

= Selling price - Taxes

= 150,000 - (-3,782.70)

= $153,782.70

<em>Note: If there are options, beware of rounding errors and pick nearest option. </em>

6 0
2 years ago
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