Dictate process and judgment for determining fair value

Assignment Help Financial Management
Reference no: EM131908789

When bonds change in value depending on the going market rate of interest, companies are permitted, but not required, to recognize changes in value of such liabilities. Under what conditions would a company want to recognize such changes? What are the reporting requirements when such changes are recognized?

Specific rules dictate the process and judgment for determining fair value. If a company's debt is traded in a public market, what should the valuation be based on? If the debt does not have a clearly determinable market, how should the valuation be calculated?

Reference no: EM131908789

Questions Cloud

Determine the irr for computer system : A firm is considering purchasing a computer system. Determine the IRR for the computer system.
Purchasing set of machine tools to process special orders : The Simon Machine Tools Company is considering purchasing a new set of machine tools to process special orders.
Monthly payment amortized mortgage : you have arranged to finance the remaining 130000 with a 30 year monthly payment amortized mortgage at a 6% nominal annual interest rate,
What is the effective interest rate on the loan : The loan called for a compensating balance of 13 percent. What is the effective interest rate on the loan?
Dictate process and judgment for determining fair value : Specific rules dictate the process and judgment for determining fair value. how should the valuation be calculated?
Calculate the value at the end of investment : Calculate the value at the end of 10 years of James’s investment in today’s dollars.
They owe any taxes on funds as they withdrew them : Would they owe any taxes on the funds as they withdrew them (Under current tax laws)?
Why reward-to-risk ratio must be equal for all securities : Explain why the reward-to-risk ratio must be equal for all securities if the financial markets are efficient (law of one price).
Present value of annuity-determine present value : Present Value of an Annuity Determine the present value of $200,000 to be received at the end of each of four years,

Reviews

Write a Review

Financial Management Questions & Answers

  Short-term loans that charge very high interest rates

Payday loans are very short-term loans that charge very high interest rates. You can borrow $275 today and repay $330 in two weeks. What is the compounded annual rate implied by this 20 percent rate charged for only two weeks?

  Issued bonds-hat is the price of the bonds

Renfro Rentals has issued bonds that have a 9% coupon rate, payable semiannually. The bonds mature in 12 years, have a face value of $1,000, and a yield to maturity of 11%. What is the price of the bonds?

  What is the capital cost per piece produced on this machine

what is the Capital Cost per piece produced on this machine if you make 1,000 pieces per year during a 5 year run.

  What was the decision that the firm made about the projects

What was the decision that the firm made about the different projects and what was the decision process that they used to come up with their final decision?

  Determine the effective annual rate with annual compounding

Given a nominal annual interest rate of 20 percent, determine the effective annual rate with Annual compounding, Quarterly compounding, Monthly compounding and Continuous compounding.

  Compute the after-tax cost of each component of capital

The Killington Corporation has planned capital expenditures of $40 million for the upcoming fiscal year. Killington's stock is currently selling at $22 per share. Flotation costs are 10%. The earnings growth rate has been steady and is expected to co..

  What is the sample standard deviation of the above returns

Using the standard deviation and mean that you just calculated, and assuming a normal probability distribution, what is the probability of losing 3% or more?

  What is net present value of project if required rate

What is the net present value of the project if the required rate of return is 10 percent?

  What must sony growth rate be

How much would you pay today for a share of Sony Corp. stock? What must Sony’s growth rate be?

  What was the total asset turnover

Kaleb’s Karate Supply had a profit margin of 12 percent, sales of $23.8 million, and total assets of $8.8 million. What was the total asset turnover?

  Major forces affecting the delivery of healthcare today

What are the major forces affecting the delivery of healthcare today? Discuss these forces and their corresponding impacts on today’s healthcare environment. Impact of Forces: What healthcare service and delivery opportunities and challenges exist be..

  According to the capital asset pricing model

According to the Capital Asset Pricing Model, the introduction of a risk-free asset renders the efficient frontier of efficient portfolios linear. How many portfolios of risky assets (portfolios of only risky assets) lie on the resulting Capital Mark..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd