An equity analyst with maplewood securities

Assignment Help Accounting Basics

Reference no: EM131044796

Burton Howard, CFA, is an equity analyst with Maplewood Securities. Howard is preparing a research report on Confabulated Materials, SA, a publicly traded company based in France that complies with IFRS. As part of his analysis, Howard has assembled data gathered from the financial statement footnotes of Confabulated's 2009 Annual Report and from discussions with company management. Howard is concerned about the eff ect of this information on Confabulated's future earnings. Information about Confabulated's investment portfolio for the years ended 31 December 2008 and 2009 is presented in Exhibit 1. As part of his research, Howard is considering the possible effect on reported income of Confabulated's accounting classification for fixed income investments.

*All securities were acquired at par value.

In addition, Confabulated's annual report discusses a transaction under which receivables were securitized through a special purpose entity (SPE) for Confabulated's benefit.

Th e balance sheet carrying value of Confabulated's investment portfolio (in € thousands)

at 31 December 2009 is closest to:

A. 112,000.

B. 115,000.

C. 118,000.

Reference no: EM131044796

Questions Cloud

Examine contemporary issues in the e-commerce management : Assignment requires you to research and develop a report to examine contemporary issues in the e-commerce management sector, including further extending your prototype website to facilitate e-commerce transactions based on the same online business

Backup equipment-will additional profit cover cost of lease : A video game company uses three pieces of machinery to produce games. The company operates 365 days per year and the games produced each day can be sold at a profit of $10,000. How much more profit will the company expect to earn if they have the bac..

Confidence level for the population mean : If the population standard deviation σ= 25, what is the required minimum sample size to construct a 90% confidence level for the population mean with an allowable error of ± 3, using Z0.05=1.645?

Histogram of the feature length movie times : Suppose we were to make a histogram of the feature length movie times of all movies in the past year. The histogram would be a display of which of the following?

An equity analyst with maplewood securities : Burton Howard, CFA, is an equity analyst with Maplewood Securities. Howard is preparing a research report on Confabulated Materials, SA, a publicly traded company based in France that complies with IFRS.

What is the probability of waiting : Between 2 and 4 PM on Wednesday, patient insurance inquiries arrive at Blue Choice insurance with a mean rate of 2.6 calls per minute. What is the probability of waiting more than 1.5 minutes to get the next inquiry call?

What is the effective after-tax lease borrowing rate : Riverton Mining plans to purchase or lease $435,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be worthless. If Riverton purchases the equipment, what i..

What rate would legally have to be quoted : A local finance company quotes an interest rate of 18.5 percent on one-year loans. So, if you borrow $41,000, the interest for the year will be $7,585. What rate would legally have to be quoted? What is the effective annual rate?

Telephone number for information : What is the probability that 11 or more of these consumers have called an 800 or 900 telephone number for information about some product?

User Account

All Pages