Answer: a. added to Inventory.
Explanation:
A Perpetual Inventory system is one where the inventory records of a company are updated as soon as inventory is either received or sold thus ensuring that the inventory balance is more accurate.
When using a perpetual inventory system, a key feature is that the transportation costs of the inventory are added to the inventory as part of the costs of acquiring the inventory unlike with the periodic system where a separate account will be maintained.
Hey There!:
Sample Mean = 4.4823
SD = 0.1859
Sample Size (n) = 7
Standard Error (SE) = SD/root(n) = 0.0703
alpha (a) = 1-0.99 = 0.01
t(a/2, n-1 ) = 3.7074
Margin of Error (ME) = t(a/2,n-1)x SE = 0.2606
99% confidence interval is given by:
Sample Mean +/- (Margin of Error)
4.4823 +/- 0.2606 = (4.222 , 4.743)
Hope this helps!
Answer:
Return on investment = -0.07215 or -7.215%
Explanation:
The rate of return or percent return on the investment can be calculated by deducting the initial cost of the investment from the current value of the investment and dividing it by the initial cost.
The return provided by the investment can be calculated by adding the returns provided in form of dividend and capital gains both. Thus, the return can be calculated as follows,
Total dividend = 1.25 * 200 = $250
Total selling value = 35.4 * 200 = $7080
Total value = 250 + 7080 = $7330
Return on investment = (7330 - 7900) / 7900 = -0.07215 or -7.215%
b. How large a gain or loss in aggregate dollar terms do market signaling studies suggest existing FARO shareholders will experience on the announcement date?
c. What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss?
d. At what price should FARO expect its existing shares to sell immediately after the announcement?
Answer:
a. Market signaling studies suggest that the price of existing FARO shares will fall.
b. $60,000,000
c. 8.403%
d. $38.471
Explanation:
Given
New Shares: $200,000,000
Existing Shares: $17,000,000
Price per Share: 42
a.
Because the stock of the FARO Technologies is overvalued at the current price
b.
Expected Loss: 30% * New Shares Size
New Shares Size = $200,000,000 (given)
Expected Loss = 30% * $200,000,000
Expected Loss = $60,000,000
c.
Percentage of the value of FARO’s existing equity = Ratio of New Expected Share Value to Existing Share Value
Expected Share Value = $60,000,000
Existing Share Value = Price per Shares * Existing Shares
Existing Share Value = 42 * $17,000,000
Existing Share Value = $714,000,000
Percentage of FARO's Existing Equity = $60,000,000 ÷ $714,000,000
Percentage = 8.403%
d.
The price FARO should expect its existing shares to sell
= Price per Share (1 - Percentage of Existing Equity)
Price per Share = 42
Percentage Existing Equity = 8.403%
The price FARO should expect its existing shares to sell = 42(1-8.403%)
The price FARO should expect its existing shares to sell = 42(1-0.08403)
The price FARO should expect its existing shares to sell = 42 * 0.91597
The price FARO should expect its existing shares to sell = $38.47074
The price FARO should expect its existing shares to sell = $38.471 ----- Approximated
The announcement of FARO technologies to sell new shares might decrease their share price as it might signal overvaluation to investors. Existing shareholders may thus experience a loss. The new selling price would be the original price minus the decrease caused by the announcement.
a. The market signaling theory suggests that the announcement of FARO Technologies selling new shares to raise capital could lead to a decrease in the company's share price. This is because it signals to investors that the company may be overvalued, leading them to sell their shares, thereby driving down the price.
b. For existing FARO shareholders, the aggregate dollar loss could be estimated by multiplying the decrease in share price by the number of existing shares.
c. To calculate the percentage of the value of FARO's existing equity that this represents, we could divide the total dollar loss by the company's market capitalization before the announcement, and then multiply by 100 to get a percentage.
d. After the announcement, the price that FARO should expect its shares to sell at would be the original price minus the decrease due to the announcement.
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Answer:
(A) The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine.
Explanation:
A segregation of duties is an internal control in business. It is assigning more than one person to a task usually to prevent error or any fraudulent activity. Therefore, the treasurer giving the signature block to the assistant treasurer to run the check-signing machine is not a violation of a segregation of duties.
The options are:
A. leaving the current market selling a company's current products B. developing a new product C. selling in a company's current market D. selling in new as well as existing markets.
Answer:
B. developing a new product
Explanation:
Both when involved in product development strategy and diversification there will be development of a new product.
In product development strategy involves bringing new innovation to customers. New products that the market needs are developed.
In diversification strategy involves entering a new market and developing new product to get market share.
Both product development strategies and diversification strategies involveselling in new as well as existing markets. Hence option D is correct.
Both product development strategies and diversification strategies involve expanding a company's market reach. Product development strategies focus on introducing new products or improving existing products to target the company's current market.
On the other hand, diversification strategies involve entering new markets with either new or existing products. Both approaches aim to increase the company's market share and revenue by reaching new customers or expanding the offerings to existing customers.
Learn more about diversification here:
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