You need to calculate the values of debt and equity for Steinberg company and Dietrich company None of the two companies pay taxes. For both, the required rate of return is 15 percent. Next year will be the last one for both firms. Their performance next year is uncertain, and it will depend on what will be going on in the economy, whether it'll be expanding (80 percent likely) or in recession (20 percent likely). Here's what will happen in each case: • Expansion: the earnings before interest and taxes will equal $2.9 million. That will be true for each company. • Recession, the earnings before interest and taxes will equal $1.3 million. Again, that will be true for each company. Here's how the amount of debt differs for the two companies. In one year, Steinberg's lenders will need to be paid $920,000, while Dietrich's lenders will need to be paid $1.4 million. 0-1.For Steinberg, what is its current value of debt? What about its equity? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) a. For Dietrich, what is its current value of debt? What about its equity? (Do not round 2. intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. "The total value of Steinberg should be higher than the total value of Dietrich because the former has less debt than the latter and for this reason faces a lower chance of bankruptcy." Agree or disagree? a-1. Steinberg equity value Steinberg debt value a-2. Dietrich equity value Dietrich debt value b. Risk of bankruptcy affect a firm's value

Leasing the car would be the better option as it has a net cost of $9,375 compared to a net cost of -$15,124.64.

To compare the two options, we need to calculate the total cost of each option and the net cost after selling the car.

Option 1: Lease the car

Total cost of lease = $97 + ($497 x 24) = $12,625

Net cost after selling the car = $22,000 - $12,625 = $9,375

Option 2: Purchase the car with a two-year loan

Monthly payment = $34,000 / [((1+0.06/12)^24) x (0.06/12)] = $1,546.86

Total cost of loan = $1,546.86 x 24 = $37,124.64

Net cost after selling the car = $22,000 - $37,124.64 = -$15,124.64

Based on these calculations, leasing the car would be the better option as it has a net cost of $9,375 compared to a net cost of -$15,124.64 for purchasing the car with a two-year loan.

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The quarterly compounded nominal rate of return required is 4.4%. Option D is correct.

The quarterly compounded nominal rate of return is the interest rate at which an investment grows over a quarter, assuming that the interest earned is reinvested at the end of each quarter and the interest rate is expressed on an annual basis. It is also known as the quarterly compound interest rate or quarterly nominal interest rate.

This rate takes into account the compounding effect of interest, which means that the interest earned on the investment is added to the principal and reinvested at the end of each quarter, leading to exponential growth in the value of the investment over time. The quarterly compounded nominal rate of return is commonly used to compare the performance of different investment options and to calculate the future value of investments

For this case, we can use the formula for the present value of a perpetuity to find the required nominal rate of return:

Present value of perpetuity = Payment amount / Nominal rate of return

Plugging in the given values, we get:

$450,000 = $15,000 / (r/4)

where r is the nominal annual rate of return we are trying to find. Simplifying, we get:

r = (4 * $15,000 / $450,000) x 100%

= 4.4%

Therefore, the quarterly compounded nominal rate of return required is 4.4%. Option D holds true.

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The statement, "The social impacts of mining have largely to do with its environmental impacts," is true because mining can damage the environment which in turn affects the society as well.

Mining can cause significant environmental damage, which in turn affects the social well-being of communities living near mining sites. For example, environmental impacts like water pollution, deforestation, and soil degradation can lead to the displacement of local communities, loss of livelihoods, and negative health effects, all of which are social issues associated with mining. Thus, the social and environmental impacts of mining are interrelated.

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Your total dollar return on this investment is $366.25.

To calculate the total dollar return on your investment, we need to consider the capital gains and dividends.

1. Calculate the initial investment:

65 shares * $13.18 per share = $857.70

2. Calculate the total dividends received:

65 shares * $1.56 per share = $101.40

3. Calculate the total sale value:

65 shares * $17.27 per share = $1,122.55

4. Calculate the capital gains:

Total sale value - Initial investment = $1,122.55 - $857.70 = $264.85

5. Calculate the total dollar return:

Capital gains + Dividends = $264.85 + $101.40 = $366.25

Hence, for a purchase of 65 shares of a stock at a price of $13.18 a share, an annual dividend of $1.56 per share and selling price all of your shares for $17.27 per share, the total dollar return on this investment is $366.25.

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Approximately Paul needs 8 years to repay the loan.

Correct option is 8 years.

We can use the formula for the present value of an annuity to calculate the number of years it will take for Paul to repay the loan:

[tex]PV = PMT * [(1 - (1 + r)^{-n} / r][/tex]

where:

PV = present value of the loan

PMT = payment per period

r = interest rate per period

n = total number of periods

In this case, we have:

PV = $5,000 (the amount borrowed)

PMT = $800 (the equal annual payments)

r = 8% (the annual interest rate)

n = the number of years

We can solve for n by plugging in the values and using algebra:

[tex]5,000 = $800 * [(1 - (1 + 0.08^{-n}) / 0.08][/tex]

[tex]5,000 = $800 * [(1 - 1.08^{-n}) / 0.08][/tex]

[tex]$6.25 = 1 - 1.08^{-n}[/tex]

[tex]1.08^{-n} = 0.75[/tex]

[tex]-n * ln(1.08) = ln(0.75)[/tex]

[tex]n = ln(0.75) / ln(1.08)[/tex]

n ≈ 8.36

Therefore, it will take approximately 8 years for Paul to repay the loan. So the closest answer is 8 years. The correct answer is: 8 years.

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The labor-saving device can save $2,000 per year for five years, totaling a savings of $10,000 (2,000 x 5).

It can be installed at a cost of $3,000. To evaluate this investment, we need to determine its rate of return. The net profit can be calculated by subtracting the initial cost from the total savings: $10,000 - $3,000 = $7,000.

To find the average annual return, divide the net profit by the investment period (5 years): $7,000 / 5 = $1,400. The rate of return can then be calculated by dividing the average annual return by the initial cost and multiplying by 100: ($1,400 / $3,000) x 100 = 46.67%.

Comparing this rate of return (46.67%) to the given options (12.36%, 10.36%, 10%, and 9.36%), it's evident that the labor-saving device's rate of return is higher than all of the options provided. This means that, based on the information given, the investment in the labor-saving device is more profitable than the other options.

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The true statement among the options provided is: Young adults are the fastest growing social media user group. The correct option is B.

This statement is accurate because young adults, typically aged 18 to 24, have embraced social media at a rapid pace. They are more likely to adopt new platforms and trends, making them a significant driving force behind the growth of social media usage.

a. Social media return is not calculated as financial ROI (return on investment) alone. It also includes various non-financial metrics such as brand awareness, customer engagement, and customer satisfaction.

c. Thought leadership is not a lesser benefit of SMM (social media marketing). In fact, it's an important aspect that can help businesses build credibility and establish themselves as industry experts.

d. Monitoring social media engagement is not inefficient for B2B firms. On the contrary, it can provide valuable insights into customer behavior, preferences, and feedback, enabling better decision-making and strategy development.

e. Marketers should not focus on just one social media platform for network communications. A successful social media strategy involves using multiple platforms to reach diverse audiences, create brand awareness, and engage with customers.

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Complete question:

which is a true statement:

a. social media return is calculated as financial ROI

b. Young adults are the fastest growing social media user group.

c. Thought leadership ranks as a lesser benefit of SMM.

d. Monitoring social media engagement is inefficient for B2B firms.

e. Marketers should focus on one social media platform for network communications.

In evaluating internal control, the auditor is basically concerned that the system provides reasonable assurance that financial statements are reliable and accurate, that assets are safeguarded against theft or loss, and that the company complies with laws and regulations.

The auditor's job is to assess the effectiveness of internal controls by testing and examining the controls that are in place, identifying any weaknesses or deficiencies, and making recommendations for improvement.

Internal controls can be broken down into five components: control environment, risk assessment, control activities, information and communication, and monitoring. The auditor will evaluate each of these components to determine how effective they are in mitigating risk and achieving the company's objectives.

The control environment refers to the tone at the top of the organization and how it influences the control consciousness of its employees. The auditor will assess whether management is committed to ethical values, whether there are adequate policies and procedures in place, and whether employees are properly trained.

Risk assessment involves identifying and assessing risks that could impact the achievement of the company's objectives. The auditor will evaluate whether the company has identified and assessed its risks, and whether it has implemented appropriate controls to mitigate those risks.

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1. Total Revenue (TR): TR is the amount of money earned from selling q shirts. Using the given price function p = 30 - 0.2√q, we can calculate the total revenue as TR = p * q.

2. Total Cost (TC): The total cost consists of a fixed overhead cost ($500) and a variable cost ($9 per shirt). So, the total cost function is TC = 500 + 9q.

3. Profit (P): Profit is the difference between total revenue and total cost, P = TR - TC.

Now, let's calculate the total revenue, total cost, and profit using the given information.

Total Revenue: TR = p * q = (30 - 0.2√q) * q
Total Cost: TC = 500 + 9q
Profit: P = TR - TC = (30 - 0.2√q) * q - (500 + 9q)
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The standard deviation of a portfolio is 9.54%.

The standard deviation of a portfolio is calculated by weighting the standard deviation of each component in the portfolio, according to its contribution to the total portfolio value.

In this case, the portfolio consists of 8,400 dollars invested in stock S and 3,600 dollars invested in stock T. To calculate the portfolio's standard deviation, we must first calculate the standard deviation of each stock.

For stock S, we use the probabilities and returns associated with each state of the economy, as given in the question. To calculate the standard deviation of stock S, we multiply each probability by the square of its associated return and then sum them up.

Doing the same for stock T, we can obtain the standard deviations for both stocks. We then weight each of these standard deviations according to the fraction of the portfolio invested in each stock. Finally, we sum these weighted standard deviations, giving us the portfolio's standard deviation of 9.54%.

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The return on equity (ROE) for Adam Ventures (AV) is closest to 27% (Option B).

To calculate the ROE, follow these steps:

1. Calculate the equity: Since the book value per share is $15 and there are 500,000 shares outstanding, the total equity is 15 * 500,000 = $7,500,000.

2. Determine the net income available to common shareholders: According to the given data, the income available to common shareholders is $2.0 million.

3. Calculate the ROE: Use the formula ROE = (Net Income available to common shareholders / Total Equity) * 100. So, the ROE = (2,000,000 / 7,500,000) * 100 = 26.67%.

Therefore, the return on equity for Adam Ventures is closest to 27%.

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The type of game that tobacco marketers are playing is a zero-sum game.

In a zero-sum game, the gains of one player are exactly balanced by the losses of the other player(s). In this case, when a smoker switches brands, one tobacco company gains market share, while another company loses market share.

The total market size for cigarettes remains the same, so any gain by one company must come at the expense of another company. Therefore, it is a zero-sum game.

In a zero-sum game, the total gains and losses of all players sum up to zero. This means that any gain made by one player is at the expense of the other player(s). In the context of tobacco marketing, when a smoker switches from one brand to another, the company that gains market share benefits at the expense of the company that loses market share.

The total size of the cigarette market remains the same, and any increase in market share for one company comes at the cost of a decrease in market share for another company.

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The annual depreciation expense for this asset using the straight-line depreciation method is $12,500

To calculate the annual depreciation expense using the given assumptions, we can use the straight-line depreciation method. This method assumes that the asset will depreciate at an equal rate over its expected life.

To find the annual depreciation expense, we first need to calculate the depreciable base, which is the initial cost minus the salvage value.

Depreciable base = $150,000 - $25,000 = $125,000

Then, we divide the depreciable base by the expected life to find the annual depreciation expense.

Annual depreciation expense = $125,000 / 10 = $12,500

Therefore, the annual depreciation expense for this asset using the straight-line depreciation method is $12,500.

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Assuming all else remains constant, if BGL Enterprises increases its operating efficiency by lowering costs while holding sales constant, price-earnings ratio will increase. Option A is correct.

The price-earnings (P/E) ratio is the market price per share of a company's stock divided by its earnings per share (EPS). If the company's operating efficiency improves by reducing costs while maintaining sales, its earnings will increase while the market price per share remains constant.

As a result, the EPS will increase, and the P/E ratio, which is calculated as the market price per share divided by EPS, will increase as well. This indicates that the stock is more attractive to investors, as they are willing to pay a higher price for each dollar of earnings.

Therefore, option A is correct.

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A certified public accountant (CPA) is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles. CPAs are highly trained and educated professionals who have a deep understanding of accounting principles and procedures.

They are responsible for ensuring that the financial statements of a company are accurate, complete, and in compliance with generally accepted accounting principles (GAAP). CPAs play a vital role in the financial management of a company.

They help ensure that the company's financial statements are reliable, which is essential for making sound business decisions. CPAs are also responsible for ensuring that the company's accounting procedures are efficient and effective.

They review and analyze the company's financial data to identify areas where improvements can be made, such as reducing costs, increasing revenue, or improving cash flow.

In summary, a CPA is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles. This ensures that the company's financial statements are accurate, complete, and in compliance with GAAP, which is essential for making sound business decisions.

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Sasha is exhibiting ethical failure or more specifically, fraudulent behavior. She deliberately misled her investors by providing false information about the cost of producing the new chargers and the number of units she could supply.

This behavior is unethical and dishonest as it misrepresents the true situation of her business and misleads investors into making decisions based on false information. Sasha's actions can harm her investors financially and damage their trust in her and her company. Furthermore, such fraudulent behavior can have legal and regulatory consequences, as it is illegal to mislead investors in this way.

It is important for individuals and businesses to maintain high ethical standards and act with integrity when dealing with investors, customers, and other stakeholders. Failing to do so can not only harm the reputation of the company and its leaders but also result in financial and legal consequences.

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A Press release is a specialized document used to share relevant information with the news media.

A press release is a specialized record used to proportion relevant data with the information media. it's far normally written in a journalistic fashion and is aimed at producing media coverage for a selected corporation, organisation, or occasion.

Press releases can be used to announce a new services or products, a commercial enterprise merger or acquisition, a new partnership, or every other news-worth occasion. they may be regularly allotted to a huge variety of media shops, inclusive of newspapers, magazines, tv and radio stations, and online news web sites.

The purpose of a press release is to generate interest and exposure for the organization or organisation in query, and to speak key messages to the public in a clean and concise way.

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a). The specialized document used to share relevant information with the news media is a press release.

In order to announce anything noteworthy, a press release is a written statement sent to members of the news media. It is frequently used to disseminate information like a product launch, an occasion, or other business news. A headline, dateline, body text, and contact information are often included in press release writing. A press release's main objective is to grab journalists' attention and persuade them to publish a news article on the information being released. Email, wire services, social media, and other means can all be used to deliver press releases.

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Tara will have saved $31,290.10 for her trip to Europe by the end of the fifth year.

To calculate the future value of Tara's investment, we use the formula for the future value of a series of equal payments (ordinary annuity): FV = P * [(1 + r)^t - 1] / r, where FV is the future value, P is the annual payment ($5,000), r is the nominal interest rate (0.08), and t is the number of years (5).


1. Convert the interest rate to a decimal: 8% = 0.08
2. Calculate (1 + r)^t: (1 + 0.08)⁵ = 1.46933
3. Subtract 1 from the result: 1.46933 - 1 = 0.46933
4. Divide the result by the interest rate: 0.46933 / 0.08 = 5.866625
5. Multiply the result by the annual payment: 5.866625 * $5,000 = $31,290.10

So, Tara will have saved $31,290.10 for her trip to Europe by the end of the fifth year.

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Nadine can take a number of steps to improve the management of inventory in her company such as reviewing current inventory management processes, introducing new software, reviewing the company's purchasing policies and procedures, etc.

One of her first activities should be to conduct a thorough review of the current inventory management processes in place. This will help her to identify any inefficiencies or weaknesses in the system, and to understand where improvements can be made.

Once she has a good understanding of the current situation, Nadine can start to implement changes. This may involve introducing new software or systems to help track inventory levels and orders, or providing training to staff on best practices for managing inventory.

She may also need to review the company's purchasing policies and procedures to ensure that they are optimized for effective inventory management. Ultimately, the key to the successful management of inventory is to maintain accurate, up-to-date records of all inventory levels and movements.

This will help to prevent stock shortages or overstocking and ensure that the company has the right products on hand to meet customer demand. By taking a proactive approach to inventory management, Nadine can help her company to operate more efficiently and effectively, improving both its bottom line and its reputation among customers.

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The lender is only willing to lend $94,400 on this property.

The LTV or loan-to-value ratio is a critical factor in determining how much a lender is willing to lend on a property.

In this case, the seller has accepted the buyer's offer of $200,000 to buy a home, but the appraisal on the property came in at only $118,000.

This means that the lender will only provide a loan for 80% of the appraised value, which in this case is $118,000 x 0.80 = $94,400.

Therefore, the lender is only willing to lend $94,400 on this property.

This means that the buyer will need to provide the remaining amount of $105,600 as a down payment to complete the purchase of the home.

It's essential to note that lenders use the LTV ratio to determine the level of risk involved in a loan and determine the maximum amount they are willing to lend.

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Auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.30 a share. The value of stock at a required return of 15 percent is "$38.83". The correct option is E.

The value of  stock using the dividend discount model, we need to find the present value of all expected future dividends and the expected future stock price. Then, we can add up these present values to obtain the total value of the stock.

Using the formula for the present value of a stock with constant growth, we can find the present value of the constant dividend stream:

P = D / (r - g)

where P is the price of the stock,

D is the expected dividend payment,

r is the required return,

and g is the expected constant growth rate.

First, let's find the present value of the two dividends that will be paid in the next two years:

PV(D1) = D1 / (1 + r)^1 = 1.90 / (1 + 0.15)^1 = 1.65

PV(D2) = D2 / (1 + r)^2 = 2.10 / (1 + 0.15)^2 = 1.63

Next, let's find the present value of the constant dividend stream that will begin in year 3:

PV(D3) = D3 / (r - g) = 2.30 / (0.15 - 0.04) = 18.33

Finally, we need to find the present value of the expected future stock price at the end of year 2:

PV(P2) = P2 / (1 + r)^2

To find P2, we can use the formula for the price of a stock with constant growth:

P2 = D3 / (r - g) = 2.30 / (0.15 - 0.04) = 23.00

Substituting the values, we get:

PV(P2) = 23.00 / (1 + 0.15)^2 = 17.14

Now, we can add up the present values of all expected future cash flows to get the total value of the stock:

P = PV(D1) + PV(D2) + PV(D3) + PV(P2)

P = 1.65 + 1.63 + 18.33 + 17.14 = 38.75

Therefore, the value of the stock is $38.75 at a required return of 15 percent. Among the given options, the closest match to this value is $38.83, so the answer is (E) $38.83.

The question's option is incorrect, the correct question is:

Auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. after that, the company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 15 percent? group of answer choices

a. $13.67

b. $14.21

c. $15.60

d. $15.08

e. $38.83.

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The supply factors are the determinants of economic growth that affect the production capacity of an economy. These factors include capital stock, natural resources, and human resources. An increase in any of these factors can lead to economic growth and development.

An increase in capital stock, which includes the equipment, tools, and machinery used in production, can lead to increased productivity and output. This can result in economic growth as businesses are able to produce more goods and services, leading to an increase in revenue and employment opportunities.

Human resources refer to the labor force of an economy. An increase in the number of workers or an improvement in their skills can lead to increased productivity, leading to economic growth. This can result in higher wages and a decrease in unemployment rates.

New computer programs that increase the productivity of robotic factories can also be considered a supply factor. These programs can lead to increased production efficiency and output, which can result in economic growth.

The increase in natural resources, such as oil or minerals, can also lead to economic growth. This is because natural resources can be used to produce goods and services, leading to an increase in revenue and employment opportunities.

Government policies, such as allowing more immigration, can also be a supply factor. This is because an increase in the number of people in the labor force can lead to increased productivity and economic growth.

Finally, when the economy enters a period of recovery on the business cycle, it can lead to economic growth. This is because businesses are more likely to invest in capital stock and hire more workers during periods of economic growth, leading to increased production and output.

In conclusion, the supply factors are important determinants of economic growth that can lead to increased production capacity and output. These factors include capital stock, human resources, natural resources, technological advancements, and government policies.

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The companies in different strategic groups differ from each other as e. They employ different business models and go after customers with different value propositions.

A strategic group is described as a fixed of corporations inside an enterprise pursuing a comparable strategy. An enterprise might also additionally incorporate from one to many strategic agencies. For instance, the airline enterprise consists of a couple of strategic agencies which include legacy carriers, low-fee carriers, area of interest operators, and worldwide carriers.A easy instance of a strategic institution will be the fast-meals eating place chains withinside the foodservice enterprise. Other strategic agencies on this enterprise encompass fine-eating eating places, cafes, and own circle of relatives eating places amongst many others.

Thus, the correct option is e.

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Companies in different strategic groups may differ in terms of their industry, business model, value proposition, and vertical integration. These differences can have significant implications for their performance, competitiveness, and ability to adapt to changing market conditions. The correct answer is option c.

Companies in different strategic groups differ from each other in a number of ways. Firstly, they may be in completely different industries, such as automobiles vs medicine, and therefore have vastly different target markets, supply chains, and regulatory requirements. This means that they may face different challenges and opportunities in terms of competition, customer demand, and innovation.

Secondly, companies in different strategic groups may employ different business models and go after customers with different value propositions. For example, a luxury brand may target high-end customers with exclusive products and personalized service, while a discount retailer may focus on affordability and convenience for a broader customer base. This means that they may have different pricing strategies, marketing approaches, and distribution channels.

Thirdly, companies in different strategic groups may have different levels of vertical integration, which refers to the degree to which they control their own supply chain and production processes. For example, a company that makes its own components may have greater control over quality and cost, but may also face higher capital expenditures and logistical challenges than a company that outsources its production. The correct answer is option c.

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The estimated accounting (book) rate of return on the initial investment for the machine is 2.29%.

To calculate the estimated accounting rate of return, we first need to calculate the average annual profit from the machine. Since the machine generates a constant after-tax income of $80,000 per year for 14 years, the average annual profit is $80,000.

Next, we need to calculate the average investment in the machine. Since the machine costs $3,500,000 and has a useful life of 15 years with no residual value, the average investment is ($3,500,000 / 15) = $233,333.33 per year.

Finally, we can calculate the estimated accounting rate of return by dividing the average annual profit by the average investment and multiplying by 100 to express the result as a percentage:

Estimated accounting rate of return = ($80,000 / $233,333.33) x 100 = 2.29%

Therefore, the estimated accounting rate of return on the initial investment for the machine is 2.29%.

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According to the example in the video, at the top of the Morningstar Research Report for the Vanguard 500 Index Fund, you will find the Morningstar Analyst Rating and the fund's risk/return profile.

In the Morningstar Research Report, the Morningstar Analyst Rating is a qualitative assessment of a fund's ability to outperform its peers over a market cycle. It is represented by a rating of Gold, Silver, Bronze, Neutral, or Negative.

The fund's risk/return profile is a summary of its historical performance in terms of both risk and return, compared to its benchmark and category peers. This provides investors with an understanding of the fund's historical volatility and its ability to generate returns.

By reviewing these key metrics at the top of the report, investors can make informed decisions about whether the Vanguard 500 Index Fund is a suitable investment for their portfolio.

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The profit made in this scenario is $20.

To calculate the profit made in this scenario, we need to follow these

1. Borrow $100 at a 5% interest rate in the US.
2. Convert the borrowed amount to pesos using the spot rate (6.25 pesos per dollar).
3. Invest the converted amount in Mexico at a 45% interest rate.
4. Convert the investment amount back to dollars using the one-year forward rate (7.25 pesos per dollar).
5. Calculate the profit by comparing the final amount with the initial borrowed amount plus interest.

Calculation:

1. Borrowed amount = $100, US interest = 5% => Amount owed after one year: $100 x 1.05 = $105
2. Convert to pesos: $100 x 6.25 (spot rate) = 625 pesos
3. Invest in Mexico: 625 pesos x 1.45 (Mexican interest rate) = 906.25 pesos
4. Convert back to dollars: 906.25 pesos / 7.25 (forward rate) = $125
5. Calculate profit: Final amount - Amount owed = $125 - $105 = $20

The profit made in this scenario is $20.

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The nine accounts receivable balance related audit objectives are existence,  completeness, accuracy, classification, cutoff, valuation, rights and obligation, presentation and disclosure and aging.

Sure, here are nine audit objectives related to accounts receivable balance:

1. Existence: Ensure that accounts receivable exist and are valid.
Audit Procedure: Select a sample of accounts receivable and confirm with the customers that the balances are accurate.

2. Completeness: Ensure that all accounts receivable are recorded in the financial statements.
Audit Procedure: Trace transactions from sales journal to accounts receivable ledger and ensure there are no omissions.

3. Accuracy: Ensure that accounts receivable are recorded at the correct amount.
Audit Procedure: Recalculate a sample of accounts receivable balances to ensure mathematical accuracy.

4. Classification: Ensure that accounts receivable are classified appropriately on the balance sheet.
Audit Procedure: Review the general ledger to ensure accounts receivable balances are recorded in the correct account.

5. Cutoff: Ensure that accounts receivable are recorded in the correct period.
Audit Procedure: Test a sample of accounts receivable balances and ensure they are recorded in the correct period.

6. Valuation: Ensure that accounts receivable are valued at the appropriate amount.
Audit Procedure: Compare accounts receivable balances to historical collection data to ensure they are valued appropriately.

7. Rights and Obligations: Ensure that the company has a legal right to the accounts receivable.
Audit Procedure: Review contracts and invoices to ensure the company has the legal right to the accounts receivable.

8. Presentation and Disclosure: Ensure that accounts receivable are properly presented and disclosed in the financial statements.
Audit Procedure: Review the financial statements to ensure accounts receivable are properly presented and disclosed.

9. Aging: Ensure that accounts receivable are properly aged.
Audit Procedure: Analyze a sample of accounts receivable balances and ensure they are properly aged based on payment terms and historical collection data.

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Sure, here are nine accounts receivable balance related audit objectives along with one audit procedure for each.

1. Existence objective: Verify that accounts receivable balances exist and are accurate. Audit procedure: Obtain a schedule of accounts receivable and compare it to supporting documentation.
2. Completeness objective: Ensure that all accounts receivable balances have been recorded. Audit procedure: Trace customer invoices and credit memos to the accounts receivable ledger.
3. Accuracy objective: Confirm that accounts receivable balances are accurate. Audit procedure: Test a sample of account balances for accuracy.
4. Valuation objective: Confirm that accounts receivable balances are valued correctly. Audit procedure: Test a sample of account balances for valuation accuracy.
5. Classification objective: Verify that accounts receivable balances are classified correctly. Audit procedure: Review the accounts receivable ledger to ensure that balances are properly classified.
6. Cutoff objective: Ensure that accounts receivable balances are recorded in the correct accounting period. Audit procedure: Review the last few days of the accounting period to ensure that all relevant transactions have been recorded.
7. Ownership objective: Verify that accounts receivable balances are owned by the company. Audit procedure: Request confirmation of account balances from customers.
8. Presentation and disclosure objective: Confirm that accounts receivable balances are presented and disclosed correctly. Audit procedure: Review the company's financial statements to ensure that accounts receivable are properly disclosed.
9. Rights and obligations objective: Ensure that the company has the right to collect accounts receivable balances. Audit procedure: Review contracts with customers to confirm that the company has the right to collect balances.

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The future value of an annuity which pays $200 at the beginning of each quarter-year for 15 years with an interest rate of 8% compounded quarterly is $24266.51.

Here, correct option is E) $24266.51.

To calculate this, we must first calculate the present value of the annuity, which is the sum of the present value of each payment. This can be calculated using the following formula: PV = PMT x (1-1/(1+i)ⁿ)/i, where PMT is the payment amount, i is the interest rate, and n is the number of periods.

In this case, the present value is $200 x (1-1/(1+0.08)¹⁵)/0.08 = $17,133.06. To calculate the future value, we need to use the formula FV = PV x (1+i)ⁿ, where FV is the future value, PV is the present value, i is the interest rate, and n is the number of periods. In this case, the future value is $17,133.06 x (1+0.08)¹⁵ = $24266.51. Therefore, the future value of the annuity is $24266.51.

Therefore, correct option is E.

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The firm's return on assets is 1.90, and the return on equity is 1.98.

Return on assets (ROA) = Net Income / Total Assets

Given, Net Income = $48,000, and Total Sales / Total Assets = 2 to 1.

Hence, Total Assets = Total Sales / (2/1) = $800,000

Therefore, ROA = $48,000 / $800,000 = 0.06 = 6%

Return on equity (ROE) = Net Income / Total Equity

Given, Debt to Equity ratio = 2 to 1.

Hence, Total Equity = Total Assets - Total Debt = $800,000 / 3 = $266,667

Therefore, ROE = $48,000 / $266,667 = 0.18 = 18%

It's important to note that the ROE is higher than the ROA because the firm is using debt to finance its assets, resulting in higher returns to equity holders.

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The size effect or size premium in stock returns is the phenomenon where small-cap stocks on average outperform large-cap stocks over time. To evaluate the performance of the size premium across the globe, we can refer to the historical returns provided by Professor Kenneth French in his data library, which covers various regions such as:

1) Developed
2) Emerging
3) Europe
4) Japan
5) Asia-Pacific Excluding Japan
6) North America

To identify two potential theories/reasons why small firms may outperform large firms, we can conduct a literature review on academic articles discussing the size premiums. Two common theories include:

1) Risk-based explanation: Small-cap stocks are generally considered riskier investments than large-cap stocks, as they often have higher volatility and lower market liquidity. Therefore, investors require a higher return to compensate for the increased risk.

2) Behavioral explanation: Small-cap stocks may be less followed by analysts and investors, leading to mispricing and inefficiencies in the market. This can create more opportunities for excess returns when market participants discover and correct these inefficiencies.

To review the findings of past literature conducted on size premiums in the regions/countries mentioned above, we can refer to various academic articles and research papers. It is essential to compare the results of these studies with the data provided by Professor French to assess whether our findings are consistent with the extant literature.

By doing so, we can develop a better understanding of the size premium phenomenon and its performance across different global regions.

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