Discount rate to represent the time value of money

Assignment Help Accounting Basics

Reference no: EM13159541

On December 31, 2010, Pacifica, Inc., aquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred tot he owner of Seguros included 50,000 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project goals by December 31, 2011. Pacifica estimates a 50 percent probibilty that seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money.

Reference no: EM13159541

Questions Cloud

Effort to control exchange rates : Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.

What is the metal : a metal object with a mass of 19g is heated to 96 degrees C, then transferred to a calorimeter containing 75 g of water at 18 degrees C. The water and metal object reach a final temperature of 22 degree C.

Create dot plot and box plot to represent data : Create a dot plot and a box plot to represent this data. If we create a sample by picking every 3rd data from the population, how would your answer to part a change? Show your work

Differences between integral and peripheral membrane : Describe the differences between integral and peripheral membrane proteins and explain how this affects the ways in which they are studied.

Discount rate to represent the time value of money : Pacifica estimates a 50 percent probibilty that seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money.

Calculate the molar heat of vaporization : The heat of vaporization of a liquid is the energy required to vaporize 1.00 mol of a liquid at its boiling point. In one experiment, 60.0 g of liquid nitrogen (boiling pt = -196C) is poured into a Styrofoam cup containing 200.0 g of water at 55.3..

A small cpu with a 10-bit address bus : a small CPU with a 10-bit address bus. You need to connect a 64-byte PROM, a 32-byte RAM, and a 4-port I/O chip with two address lines. Chip selects on all chips are asserted high.

Find probability that sheer guesswork yields correct answers : What is the probability that sheer guesswork yields betwenn 25 to 30 correct answers for the test (assume the student has no knowledge of the problems). Be sure to justify why you can use the method you do.

User Account

All Pages