1. __________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind. A. Financial management B. Profit maximization C. Agency theory D. Social responsibility 2.
Another method is first-in first out (FIFO). This method for valuing inventory is based on the order that merchandise comes in. The first goods in are the first is out for sale first and everything else afterwards must wait until product one is out of stock. Finally, last-in first out (LIFO) refers to the merchandise that is produced most recently/last is recorded as sold first. Last-in first out is usually known as inventory profit, and when prices are decreasing in the market the situation is reversed.
Below the equilibrium rate? Finally, discuss why is there an inverse relationship between bond prices and interest rates? Explain. a. The LM Curve will see a shift to the left and decrease the value of "Y" if the IR is higher than the ER of the market.
Explain why you would want to reach those goals first. (2-4 sentences. 2.0 points) 7. Describe at least two factors of an investment that you
Both the direct and indirect methods will produce the same cash flow from operating activities. True b. Depreciation expense is added back to net income when the
DFA small company value fund has a coefficient of 0.84 for SMB factor; on the contrary, DFA large company value fund has a negative coefficient for SMB, which is -0.079. It is the same for DFA 6-20 mutual fund and DFA nine-ten small company fund. HML factor indicates high risk exposure for high B/M stock. Coefficient of HML suggests the relationship between the fund return and high B/M stock. Coefficients of momentum factor UMD are negative for all these five funds.
Short-run cost functions should be estimated using data for which the level of usage of one or more of the inputs is fixed. Usually time-series data for a specific firm are used to estimate short-run cost functions. Analysts should be careful to adjust the cost and input price data (which are measured in dollars) for inflation and to make sure the cost data measure economic cost. The following are the two possible problems that may arise when measuring cost for short-run cost estimation: Correcting data for the effects of inflation Economic analyses often use data from two or more calendar years. Price inflation causes the value of a dollar to fall over time, and so the same dollar amount in two different years will usually represent different amounts of purchasing power.
It is to be noted that NPV uses an absolute amount IRR is interpreted in terms of ‘Rate’. The IRR calculation assumes that the cash flow from the project
Disadvantages: 1) benefit of Tax deduction is availed late. 2) In practical, annual benefit from the asset’s use decreases with age Accelerated method: Advantage: 1) This method allows more tax deduction in early years 2) As asset depreciates faster, future expenses in the upkeep of the asset also decreases. 3) This method
Low unemployment rate and low inflation rate. b. Low unemployment and price stability. c. Low unemployment rate and high economic growth rate. d. Low inflation rate and high economic growth rate.