FIN630 gdb solution is required

[adnankhan]

Suppose that you have been using the LIFO (Last in first out) inventory method in your business for the last 15 years. You are much worried because during the current year one of you major supplier is unable to make deliveries that can result in depletion of inventory levels up till the year end.


Explain, what would be the effect on Profits of the business and Income

[viki]

Please mention the Due dates as well when ever u make the post

[viki]

Just for Idea


Negative, indicating that the returns on the two securities tend to move inversely;
when one increases (decreases), the other tends to decrease (increase), When the
covariance is negative, the correlation coefficient will also be negative.

For example, if you think the market is going to go up, you may invest $150 of the $200 in the first stock and only $50 in the second stock. Thus if the stock goes up 30% your $150 investment is worth (150*1.3) = $195 and your other investment is worth $50*(.7) = $35. Thus overall you have $230 which is an overall gain. NOTE: You have assumed risk here.

In Positive correlation securities the securities moves in same direction means profit in one security and also in second security and when securities going downs both are in same direction risk of loss but in negative correlation if one security going up and other security is going down. So risk is less and investor may invest in this security..

[marjan]

let me tell u one thing there is always a old stock which remains in fifo that will be sold at higher price whereas due to higher price it will result in higher income which will result in higher tax

[sanam]

fifo meanings first in first out?