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Q. What are the misstatements?
A Misstatement is Inconsequential - If a reasonable person would determine after considering the possibility of further undetected misstatements that misstatement either individually orwhen aggregated with other misstatements would clearly be immaterial to financial statements. If a reasonable person couldn't reach such a conclusion regarding a specific misstatement, that misstatement is more than inconsequential.
a. Why do prices of low coupon bonds tend to fluctuate more than the prices of high coupon bonds? And why do prices of longer te$ to maturity bonds tend to fluctuate more than th
What is risk aversion? If common stockholders are risk averse, how do you explain the fact that they often invest in very risky companies? Risk aversion is the trend to avoid add
The sales manager considers that there will be substantial foreign exchange risk in trading with Werland. Payment is unpaid in Werland francs in three months time. The current ster
Q. How will you conclude the cost of capital from different sources? Ans. Implication of Cost of Capital: - Cost of capital of a firm is the least rate of return expected by it
Calendar Studies These attempted to predict rates of return during a calendar year and examine if there is any particular observable pattern in the rates of return on the stock
It is the organized and established firms that constitute the venture capital industry.
You have $20 to spend on high quality pens and low quality pens. High quality pens cost $5 each and low quality pens cost $2 each. (a) Suppose that you will spend your entire
Operating segments An operating segment is a component of an organisation It engages in business activities from that it can earn revenues and incur expenses(this also c
Q. Problem in computation of retained earnings ? Problem in computation of retained earnings: it is sometimes argued that retained earning do not involve any costs. But in the
Describe the value maximisation criterion In applying the value maximisation criterion, term value is used in terms of worth to the owners, which is, ordinary shareholders. Cap
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