Answer:
It is true
Explanation:
Chartered Accountants most especially external auditors are trained to provide assurance services that will give credit and reliability to the financial information being presented to the users by the directors.
Their services include statutory audit and other related assurance services.
The report produced by a Chartered Accountant (e.g External Auditor) gives reasonable assurance to the shareholders of the company or any other external users.
Answer: The new stock price of DL Inc. would be $37.50 if the covariance of its rate of return with the market portfolio halves on a permanent basis but everything else remains the same.
If the covariance of the security's rate of return with the market portfolio halves on a permanent basis but everything else remains the same, the security's new beta would be half its initial beta. The beta of a security is the covariance of the security's rate of return with the market portfolio divided by the variance of the market portfolio.The CAPM formula is used to compute the expected rate of return on a security, and it is as follows: Required return = risk-free rate of return + (beta x market risk premium).
The current price of DL Inc. stock can be calculated using the CAPM formula as follows: Beta = covariance of DL Inc. with the market portfolio/variance of the market portfolio= ?/ (8 x 8) = ?/64 where beta is unknown.Covariance of DL Inc. with the market portfolio = 0.5, Covariance of DL Inc. with the market portfolio = 0.5 x Var (DL Inc.)/Var (Market) = 0.5 Covariance of DL Inc. with the market portfolio is half the original covariance.
The beta for the security = 0.5 Covariance of DL Inc. with the market portfolio = 0.5 x ?Var (DL Inc.)/Var (Market) = 0.5 (0.5 x ?Var (DL Inc.)/Var (Market)) = ?Var (DL Inc.)/ (2 x Var (Market))Required rate of return = 4% + (0.5 x 8%) = 8%.DL Inc.'s current stock price = Dividend per share/ (required rate of return - growth rate) = $3/ (8% - 0%) = $37.50.
Therefore, the new stock price of DL Inc. would be $37.50 if the covariance of its rate of return with the market portfolio halves on a permanent basis but everything else remains the same.
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Answer:
False
Explanation:
A flexible budget is a financial plan that varies with the levels of output and input. It is a budget that adjusts to the needs of a company and the actual revenue levels. Flexible budgets contrast fixed budgets that remain the same regardless of actual income levels.
A flexible budget uses actual revenues for a period. It records the actual expenses incurred, whether fixed or variable. A flexible budget like other financial plans and will have fixed, and variable costs indicated separately. Separating fixed and variable cost helps the management in evaluating financial performance for that period.
The four Cs of lending, for sure.
Kohlberg's theory of moral development proposes that individuals progress through different stages of moral reasoning, each building on the previous one. According to this theory, the decision to sell e-cigarettes to customers because there were no rules or laws prohibiting their sale would likely fall under Stage 4: Law and Order orientation.
At this stage, individuals view rules and laws as absolute and necessary for maintaining social order. Their decisions are based on fulfilling their duty to society and following established laws. Thus, the decision to sell e-cigarettes would be justified based on the fact that there were no laws prohibiting their sale, and it would be considered lawful and morally acceptable.
However, it's important to note that Kohlberg's theory has been criticized for being culturally biased and not taking into account situational factors that can influence moral reasoning. In the case of e-cigarettes, the decision to sell them may also involve considerations such as potential harm to public health and ethical concerns around marketing to minors.
Therefore, while Kohlberg's theory can provide insights into moral decision-making, it's important to consider its limitations and contextual factors that may influence moral reasoning in specific situations.
To learn more about “Kohlberg” refer to the brainly.com/question/28136240
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