Answer:
The answer to the above question is:
"The return patterns around earnings announcement is an example of behaviorial pattern exhibiting as more investors flock to buy the stock which has shown better earnings thus driving up the price. In an efficient market, this information would already be built into the price and thus there would not be any appreciable change in price post earning announcement".
Explanation:
Answer:
$6.3 per share
Explanation:
There are two method of Valuation of the firm
- Weighted average cost of the capital (WACC)
- Free cash flow to equity (FCFE)
We have to calculate the value of the firm using FCFE. Free cash flow to equity (FCFE) is the amount of cash flow generated by the business and potentially available for distribution among the stockholders.
Value of firm = Free cash flow / required rate of return = $120,000 / 12% = $1,000,000
Market value of Equity = Total value of firm - Market value of Debt - Market value of Preferred share
Market value of Equity = $1,000,000 - $300,000 - $70,000 = $630,000
Value of Patrick's stock = Market Value of equity / shares of stock outstanding = $630,000 / 100,000 = $6.3 per share
Answer:
d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.
Explanation:
As for the information provided,
There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.
Thus, on the provisional basis such claims of $100,000 would have been provided ideally.
Now, after final judgement the court had cleared about the claim which is $150,000.
Thus, entry to record such claim of $150,000 will be:
Expenses A/c Dr. $50,000
Claims Payable A/c Dr. $100,000
To Cash A/c $150,000
Answer:
Acitivy B should be crashed first by 2 days and Activity B has a crash cost per days of $25, it will be crashed for a total of $50.
Explanation:
activity A =
normal time (NT) = 5 days
Normal cost (NC) = $0
crash time (CT) = 3 days
Crash cost (CC) = $500
crash cost per day = [CC - NC]/[CT - NT] = $250/day
activity B:
normal time (NT) = 6 days
Normal cost (NC) = $0
crash time (CT) = 4 days
Crash cost (CC) = $50
crash cost per day = [CC - NC]/[CT - NT] = $25/day
activity C:
normal time (NT) = 8 days
Normal cost (NC) = $0
crash time (CT) = 3 days
Crash cost (CC) = $1000
crash cost per day = [CC - NC]/[ CT- NT] = $200/day
The activity that takes the least cost to speed up is the first one to be crashed. from the computations, activity B takes the least cost to speed up, so the project manager should crash activity B first by 2 days.
Therefore, Acitivy B should be crashed first by 2 days and Activity B has a crash cost per days of $25, it will be crashed for a total of $50.
So Biochemists go and compare the life and cells and dna of different creatures. doing this they developed the explination of ansestors or common ancestors. for humans for an example, we have the common ancestor that the apes have but we didnt evolve from apes.
