Show Essay Examples

Problem 2

0
(0)

Show that the lowest c such that no MM becomes informed in equilibrium is c = 1/4. That is to say, MMs will be uninformed for c > 1/4, but informed (pn > 0 for at least one MM) for c < 1/4. The probability of learning V is defined by the number of the interested parties. In essence, of the two MMs, only one can learn V, and at a cost of C Thus, each MM has a 50% chance of accessing C. Arguably, C = ½ Determining the party with the C in either case would involve finding the probability of both players securing the disclosure of the V value. In that case, MMn1 has ½ chances and MMn2 has ½ prospects. Cumulatively, they both have the product of their respective prospects, implying ¼...

  • Words: 1100
  • Pages: 4
Read more

problems

0
(0)

show how the cost of goods manufactured is arrived at, the accompanying income statement and a list of selected current assets. Problem 14-5A looks into the computation of costs of goods manufactured presented in a schedule as well as the income statement for the financial year. Problem 15-4A also looks into the manufacture cost schedule and list of current assets for the accounting period ending 31st October 2017. Various computations have been undertaken to compute the missing figures in the financial statements as indicated in the attached financial statements for each of the three problems in excel format. Work cited "Manufacturing Overhead – Accounting In Focus." Accountinginfocus.Com,...

show that Potz and Pans is more likely to get the loan when compared to WannaBees. Question 2. The acid-test ratio for Potz and Pans has been calculated as 1.67:1 whereas the acid-test ratio for WannaBees has been calculated as 0.29:1. Based on the results, Potz and Pans should receive the loan. This is because the company has a ratio figure of 1.67:1 to indicate that for every $1 of current liability, the company has $1.67 liquid assets value to cover its immediate obligations. In addition, the figure shows that the company is collecting its receivables at a fast rate, paying its bills at the right time, growing sales and is not overleveraged. In contrast, WannaBees should not receive the loan...