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enyata [817]
1 year 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]1 year 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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Granfield Company has a piece of manufacturing equipment with a book value of $40,000 and a remaining useful life of four years.
chubhunter [2.5K]

Answer:

A. $22,000 decrease

Explanation:

The reason behind Granfield Company interested in predicting the increase or decrease in net income when they purchase new machinery by selling an old one is because you have the Cash coming through so that they don't run out of money. As per Generally Accepted Accounting Principles (GAAP) the other name of Profits is Net Income. The company may not have Cash in the bank but their Net Income may be in millions. So, when Companies like Granfield when usually invests are usually concerned about their investments that weather they will be profitable or not. In this instance of Granfield Company, they predict that by acquiring the new machinery they will save on manufacturing overhead by $19,000 over 4 years which accumulates to $76,000.

Annual Savings = $19,000 x 4 = $76,000

We are told to ignore the time value of money here so if the proceeds from previous machinery are $22,000, then add the proceeds from machinery and annual savings and we get a total of $98,000

Annual Savings $76,000

Add: Proceeds from Sale of Machine $22,000

Total Savings $98,000

To find the increase or decrease in net income or the effect of purchase of new machinery and disposal of old machinery on net income can be calculated as follows;

Total Savings $98,000

Less: Purchase of New Machinery $120,000

Decrease in Net Income $22,000

Hence the Net Income will decrease by $22,000 which means there will be a decrease in retained earnings and stockholders' equity.

Option A is the Correct answer.

3 0
1 year ago
In Q1 2018, CNA Companies reports the following transactions: Capital expenditures of $15 million Loss on sale of equipment of $
matrenka [14]

Answer:

-$11 million

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the impact of transactions on retained earnings by using following formula:-

Impact of transactions on retained earnings = - common dividend - preferred dividend  - loss on sale of equipment

= -$3 million - $2 million - $6 million

= - $11 million

All three items should be deducted as it has a negative impact on the retained earnings

7 0
2 years ago
In an agile approach of analytics what is the first step of the process? Group of answer choices Model data Perform business dis
drek231 [11]

Answer:

Perform business discovery

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The fundamentals of Project Management are considered universal across most businesses and professions.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

In an agile approach of analytics the first step of the process is perform business discovery.

6 0
1 year ago
What suggestions do you have for Sabina about working with suppliers, and how would you address the sourcing issue from the Chin
SIZIF [17.4K]

The suppliers need to be informed well in advance that Lean implementation needs to take place at a date in the near future.Keeping in mind the lead time of the transistors and the inventory requirement the company should place the order for the transistor ahead of 2 months time span

Explanation:

1.<u> What suggestions do you have for Sabina about working with suppliers and how would you address the sourcing issue from the Chinese supplier based on Lean principles? </u>

The suppliers need to be informed well in advance that Lean implementation needs to take place at a date in the near future.Keeping in mind the lead time of the transistors and the inventory requirement the company should place the order for the transistor ahead of 2 months time span

<u>What should Sabina do about reorganizing the work environment? Should any layout changes be made and how do you think they should be implemented? </u>

The changes in the machinery setting is going to consume a lot of time .Sabina noticed that the layout design was based on the function rather the layout should be designed on the basis of the production flow and not on the functions.By adopting to lean six sigma these functions can be implemented

<u>How would you address the issue of equipment setup? How would you proceed? </u>

<u> </u>

By Implementing  Lean Six Sigma to identify the process that is leading to excessive  wastage and then we need to evaluate  the process of  plant loading  in a uniform manner.

<u>What other suggestions would you offer Sabina to improve the operation of this company? In what order should these changes be made? </u>

The  steps for a Lean Six Sigma needs to be adopted:

Step 1 – The values need to be defined jointly

Step 2 – An analysis  of the supply chain capabilities of the organization needs to be done.

Step 3 – Identification of the important financial and operational metrics

Step 4 – Understand the need for system improvement and then how it System needs  be executed

<u>Describe the organizational culture of Lean. How can Sabina promote this at Buckeye? </u>

All the  employees should be  involved(i.e the  suppliers, operations, and logistics. Also all the people need to be treated equally and with respect,.

 

8 0
1 year ago
In the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had accumulated depreciation of $
wariber [46]

Answer:

The tax basis of the new building amounts to $650,000

Explanation:

The tax basis of the new building is computed as:

Tax basis = Old building - Accumulated depreciation + Cash paid

Where

Old building is $530,000

Accumulated depreciation is $160,000

Cash paid is $280,000

Putting the values above:

= $530,000 - $160,000 + $280,000

= $370,000 + $280,000

= $650,000

4 0
1 year ago
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