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barxatty [35]
2 years ago
9

Jane, a partner in a cpa firm, borrows $100,000 on a secured note from one of the firm's bank audit clients to build a new dorme

r on her house. the amount of the loan is material to jane. jane will not provide any services to the bank and she is unable to influence the engagement. jane practices in the same office as the lead partner on the bank's audit. is jane's independence impaired under the aicpa code?
Business
1 answer:
dezoksy [38]2 years ago
5 0

No, because Jane is not able to influence the engagement or on the attest team. According to Interpretation 101-1<span>, </span>the independence is not impaired except the manager falls within the description of a “covered member” in ET section 92.06. Jane in general would not be well-thought-out a covered member since she is not on the attest engagement team and does not be responsible for non-attest services to the client.

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River City Recycling just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend grow
Tasya [4]

Answer:

10.34

Explanation:

This question refers to Dividend Growth Rate with respect to Stock valuation

The model estimates the dividends over a defined period based on an assumed growth rate to determine the future value of the stock.

The formular to calculating the expected value is as follows

\frac{Dividend Amount(1+Rate)^{Years}  }{Expected Return - Rate}

Please note:

Expected return and Rate are expressed in percentage i.e divided by 100.

Fitting into the formular:

\frac{1.15(1+0.0075)^{5} }{0.123 - 0.0075}

The resulting answer = 10.34

6 0
2 years ago
QUESTION 4 of 10: A clothing designer is looking for a job that can cover her living expenses of $5,000 per month. If she plans
Leto [7]

Answer:

$31.25

Explanation:

40 hours a week x 4 weeks a month = 160 hours of work per month

$5,000 divided by 160 = $31.25

7 0
2 years ago
When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products wit
GarryVolchara [31]

Answer: Category membership

Explanation:    

 According to the given question, the given situation is basically determining the dasani's category membership as it helps in categorizing the various types of products and the services on the basis of their similar features and the characteristics.

The main purpose of the category membership is that it helps in understanding the various types of offers related to the specific brand and also the high competitive choice.

The customers basically wanted the product at lower price with high quality and they usually prefer the discount offers. Therefore, Category membership is the correct answer.  

   

4 0
2 years ago
If you buy your tickets early for a live theater production in Rome, you'll pay about 30 percent less, than if you buy them on t
kow [346]

Answer: Price differentiation

Explanation:

The startegy used by the theater company to shift demand for theater tickets is differentiating on the price. Price differentiation is a pricing strategy whereby difeent sets of customers are charged different prices for the same good or services.

The theater company gives 30% discount for people who buy the tickets early compared to people who buy the ticket on the day of the performance. This so differentiation on price.

6 0
2 years ago
Read 2 more answers
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal p
xenn [34]

Answer:

A) 964,286

B) 14

C) 750,000

Explanation:

The portfolios expected return = (0.5 x $70,000) + (0.5 x $200,000) = $35,000 + $100,000 = $135,000

If the risk free investment yields 6% per year, and you require a risk premium of 8%, then the total interest rate that the portfolio yields must be 6% + 8% = 14%

you will be willing to pay: $135,000 / 14% = $964,286 for the portfolio

if the risk premium increase by 4%, then the price of the portfolio will decrease to: $135,000 / 18% = $750,000

4 0
2 years ago
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