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ZK

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A parent has two children living in cities with different costs of living.The cost of living in city B is 3 times the cost of living in city A.The child in city A has an income of $2,000 and the child in city B has an income of $6,000.The parent wants to give a total of $1,000 to her two children.Her utility function is U(C A, C B)  C A C B, where C A and C B are the consumptions of the children living in cities A and B respectively.She will choose to give

A) the child in city B 3 times as much money as the child in city A.
B) the child in city B 1.50 times as much money as the child in city A.
C) each child $500, even though this will buy less goods for the child in city B.
D) the child in city A 3 times as much money as the child in city B.
E) the child in city A 1.50 times as much money as the child in city B.

On Jul 06, 2024


C
ZK

Answered

Which of the following is an example of an organizational citizenship behavior?

A) Andre normally leaves work at five o'clock, but yesterday his boss ordered him to work until eight o'clock.
B) The manager at the loading dock was instructed to learn a new computer inventory program.
C) An office administrator volunteered to help a sales manager compile an organizational history.
D) Six of co-workers went out for hamburgers at noon yesterday to celebrate a birthday.
E) All of the above are examples of organizational citizenship behaviors.

On Jul 04, 2024


C
ZK

Answered

Rent control is a form of price _____ and is responsible for housing _____.

A) floor,shortages
B) floor,surpluses
C) ceiling,shortages
D) ceiling,surpluses

On Jun 05, 2024


C
ZK

Answered

If you invest $100 now in firm A, in one year you will get back $(30  T), where T is the average temperature during the next summer.If you invest $100 now in firm B, in one year you will get back $(180  T).The expected value of T is 70 and the standard deviation of T is 10.
a.Draw a graph showing the combinations of expected return and standard deviation that you can have by dividing $100 between stock in A and stock in B.(Hint: Expected value has the property that E(ax  b) aE(x) b and standard deviation has the property that SD(ax  b) [(absolute value of a)times SD(x)] 
b.What is the expected value and standard deviation of the safest investment strategy you can make by this means?
b.)
c.What is the highest expected value you can achieve?

On Jun 04, 2024


a.The locus includes the line segment from (S, E) (0,105)to (S, E) (10, 110)as well as the line segment from (0, 105)to (10, 100).
b.105 and 0.
c.110.
ZK

Answered

In a Canadian IPO issue,the issuing company has incurred $12 million for the floatation costs and legal fees.The issue involves 75 million shares.As a firm commitment written deal,the underwriter agrees to buy the shares at $25 each and resells to the public at $27.50 per share.What will be the percentage of direct costs required in this deal?

A) 11.50%
B) 10.01%
C) 6.01%
D) 13.33%

On May 06, 2024


C
ZK

Answered

Current GAAP recommends that the fair value method be used to account for compensatory stock option plans.From a conceptual point of view, this method is an improvement over the intrinsic value method.
Required:
Explain how the fair value method is an improvement over the intrinsic value method.

On May 05, 2024


The fair value method increases the relevance of accounting information because it reflects the value that the stock market places on the stock options.However, the reliability of the accounting information is reduced because the method requires estimates.Additionally, the fair value method provides a more relevant measure of a firm's return on investment, because of the compensation expense calculation, and a better assessment of risk, since users are better able to assess the likelihood that the stock options will be exercised.Finally, comparability is improved because external users can better contrast the terms of different plans with the information contained in the notes to the firm's financial statements.