Benjamin graham, the father of value investing, once said, "in the short run, the market is a voting machine, but in the long run, the market is a weighing machine." in this quote, benjamin graham was referring to the key difference between the "price" and the "value" of a security. in november 2006, citigroup’s stock (nyse: c) was trading at $49.59. following the credit crisis of 2007–2008 and by the end of october 2009, citigroup’s stock price had plummeted to $4.27. several banks went under, and others saw their stock prices lose more than 60% of their value. based on your understanding of stock prices and intrinsic values, which of the following statements is true? a.) the intrinsic value of a stock is based only on the perceived risk in the company. b.) a stock’s intrinsic value is based on the fundamental cash flows and the company’s risk. you can estimate the value of a company’s stock using models such as the corporate valuation model and the dividend discount model. which of the following companies would you choose to evaluate if you were using the corporate valuation model to estimate the value of the company’s stock? a.) a company that is not expected to distribute any earnings to its stockholders for the next few yearsb.) a company that has a stable distribution policy

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld

The starr theater, owned by meg vargo, will begin operations in march. the starr will be unique in that it will show only triple features of sequential theme movies. as of march 1, the ledger of starr showed: cash $3,150, land $22,000, buildings (concession stand, projection room, ticket booth, and screen) $10,000, equipment $10,000, accounts payable $7,300, and owner’s capital $37,850. during the month of march, the following events and transactions occurred.mar. 2 rented the three indiana jones movies to be shown for the first 3 weeks of march. the film rental was $3,600; $1,600 was paid in cash and $2,000 will be paid on march 10.3 ordered the lord of the rings movies to be shown the last 10 days of march. it will cost $200 per night.9 received $4,500 cash from admissions.10 paid balance due on indiana jones movies rental and $2,200 on march 1 accounts payable.11 starr theater contracted with adam ladd to operate the concession stand. ladd is to pay 15% of gross concession receipts, payable monthly, for the rental of the concession stand.12 paid advertising expenses $900.20 received $5,100 cash from customers for admissions.20 received the lord of the rings movies and paid the rental fee of $2,000.31 paid salaries of $2,900.31 received statement from adam ladd showing gross receipts from concessions of $6,000 and the balance due to starr theater of $900 ($6,000 × 15%) for march. ladd paid one-half the balance due and will remit the remainder on april 5.31 received $9,200 cash from customers for admissions.1.) enter the beginning balances in the ledger.2.) journalize the march transactions. starr records admission revenue as service revenue, rental of the concession stand as rent revenue, and film rental expense as rent expense. (credit account titles are automatically indented when the amount is entered. do not indent manually. record journal entries in the order presented in the problem. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)3.) post the march journal entries to the ledger. (post entries in the order of journal entries presented in the previous question.)

How are credit unions similar to banks