Example: Comparision company (pure play) approach General Conglomerates evaluates an oil exploration project proposed by the manager of its aviation division. Calculate the correct discount rate to use to evaluate the project. Assume that there are no taxes and all debt is risk free. The risk free rate is 7% and the market risk premium equals 8%. Company Equity Beta E/(D+E) General American Oil 1.81 0.85 Louisiana Land and Expl. 1.29 0.88 Mesa Petroleum 2.36 0.63 Murphy Oil 1.60 0.73 Natomas 1.84 0.65 Oceanic Exploration Superior Oil 1.53 0.77 1.35 0.84

Q: What are Cush flow diagrams?

A: Cash Flow:   A cash flow refers to the movement of cash to or from the business. If the cash moves…

Q: Define what is meant by a tick mark. What is its purpose?

A:

Q: What does CAPM allow you to calculate?

A: CAPM model is basically the capital asset pricing model which helps us in determining the expected…

Q: What is an ERP system?

A: Enterprise Resource Planning (ERP) System: Enterprise Resource Planning System refers to a…

Q: were the various tools used in ERP system?

A:

Q: Explain how directmaterials standards and directlabor standards are set

A: Cost Standards: Cost Standards are prepared to analyze the variances between the actual and the…

Q: What is the purpose of physical contols

A: Physical controls are basically to safeguard the assets of the entity which are highly valuable. It…

Q: Explain

A: LCNRV method means Lower of cost and net realizable value method.

Q: What is information system ? Elaborate and describe the details

A: Solution- Information systems-        AN system could be a collection of interconnected elements to…

Q: What is the objective of processing controls? List and briefly describe different processing…

A: The capacity to analyze and change a procedure to accomplish the desired result is referred to as…

Q: What is bolt-on software?

A: Software:   Software can be defined as a set of data, programs, and instructions that are used to…

Q: Explain the concept of two-dimensional ABC. Support your explanation with a diagram.

A:

Q: What is an REA diagram?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Can you please write out the equations

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Could I also get the results for part D. through F.

A: The process of accounting for expenses involved in the manufacture of items is known as…

Q: Explain the process followed and the result

A: The process followed here is the calculation of the Economic Order Quantity (EOQ), which is a…

Q: How to do the according equation

A: Accounting Equation is the double-entry system used by the organization to get the balance sheet and…

Q: What are the categories of processing controls?

A: Internal Control:   It is a process of assuring the effectiveness and efficiency of the objectives…

Q: Explain an example of internal events.

A: An Accounting event is a transaction that is recorded in the books of accounts of the company. There…

Q: Can you explain DCF model?

A: Introduction Discounted cash flows: DCF is abbreviated as discounted cash flows. The concept of…

Q: Suppose that both the direct material and rent costs are tied to the таниfаcturing of the equivalent…

A: Compute the average unit costs for direct materials assigned to 900,000 units as follows:

Q: What is the objective of output controls? List and briefly describe different output controls.

A: Output control guaranteed that the program's result was precise and complete. Output control focuses…

Q: What is the heart of ERP system?

A: Given: The element at the heart of the ERP is asked.

Q: What is the suggested order for performing tasks using the ABC system?

A: Activity-based costing, or ABC for short, is a way of allocating overhead and indirect expenses to…

Q: How are run charts useful in process control?

A: A run chart is a graph of data that is plotted over time. For a particular process if you collect…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: Show the solution in a handwritten format/way.

A: Working Note #1 Working Note #2   Working Note #3

Q: Describe the steps taken to Switch from the DB method to the SL method?

A: Depreciation:- Depreciation is allocating the value of the fixed (long lived) assets over the period…

Q: What are the types of external user?

A: Entity needs to prepare a financial statement for the use of internal and external decisions making.…

Q: what is Reference control ?

A: I assumed as a question, as what is meant by the reference  to cost control?

Q: where is the evaluate?

A: There are different type of the evidences that needs to be obtained in order to provide the evidence…

Q: AN I SEE THE MANUAL WORKING OF THE PROBLEM

A: The future value of the annuity includes the amount that is being deposited over the years and…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.