Using the fully adjusted equity method

Assignment Help Financial Management
Reference no: EM131913312

1. Using the fully adjusted equity method, an intercompany gain on an upstream sale of land is:

-recognized by the parent and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.

-recognized by the subsidiary and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.

-deferred by the subsidiary until the land is sold to an entity outside the consolidated group.

-recognized by the subsidiary and the deferral is completely allocated to the controlling stockholders of the subsidiary.

2. You need $20,000 for your project. A bank gives you the following terms:

six months at 8% interest, with a 10% compensating balance.

How much will you need to borrow?

$18,000

$2000

$20,000

$22,222

Reference no: EM131913312

Questions Cloud

What is price per share of company stock : What is the price per share of the company's stock?
Annualized irr for the mortgage in the spreadsheet : Compute Ann’s annualized IRR for the mortgage in the spreadsheet. (Use the net cash flow.)
Discount loan is paid : A Discount Loan is Paid. What is the EFFECTIVE ANNUAL INTEREST RATE?
Compute the discount rate and net present value : Compute the discount rate. Calculate the present value of total inflows. Calculate the net present value. Calculate the present value of total outflows.
Using the fully adjusted equity method : Using the fully adjusted equity method, an intercompany gain on an upstream sale of land is:
What is the effective annual interest rate of loan : A Bank is willing to lend your company $20,000 for six months at 8% interest, with 10% compensating balance. What is the effective annual interest rate of loan?
What is the company debt-equity ratio : Richard has a weighted average cost of capital of 10.0 percent. What is the company's debt-equity ratio?
Firm is considering investing in project with cash flows : Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7%.
Firm value-what is the current value of the company : hat is the current value of the company? What will the value of the firm be if the company takes on debt equal to 60 percent of its levered value?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the main premise underlying the pecking order theory

What is the main premise underlying the pecking order theory? What is the “pecking order” of sources of financing? Why is dividend policy so important to this theory? How does the concept of financials slack relate to this theory?

  What are your call options worth

Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $60, and the premium is $3.5. If, at expiration, the stock is selling for $67 per share, what are your call options worth? What is your net profit?

  Multiple linear regression models to predict total revenues

A healthcare executive is using multiple linear regression models to predict total revenues. She has decided to include both patient length of stay and insurance type in her model. Patient length of stay is measured in days. How many parameters shoul..

  Role of stabilization policies in managing the economy

Why have views changed concerning the appropriate role of stabilization policies in managing the economy?-Briefly discuss the historical evolution of these views.

  Invasion of privacy on ground

Timothy Moher owns 440 acres of land on sugar land Michigan. Sugar land is located on St. Mary's River which marks the international border between Canada and the United States. Mohers land is 2 miles from Canada. Two United States customs and border..

  Is north kitsap liable to gould for negligence

Gould had not been aware of the stop before she tripped over it. Is North Kitsap liable to Gould for negligence? Explain.

  Considering purchasing automatic concrete loading machine

ABC Company is a construction company which is considering purchasing an automatic concrete loading machine.

  What is the maturity risk premium for two-year security

The real risk-free rate is 3.5%, and inflation is expected to be 2.75% for the next 2 years. What is the maturity risk premium for the 2-year security?

  Both perpetuities have the same present value

One perpetuity-imediate with annual payments of $50 has a present value of $300. A second perpetuity has first payment equal to $35, increasing by 3% each year for the next 5 years; the payments are $X thereafter. Both perpetuities have the same pres..

  Calculate the cost of preferred stock and common stock

Apple Corporation wants to issue bonds with a 9% coupon rate, a face value of $1,000, and 12 years to maturity. Apple estimates that the bonds will sell for $1,090 with issuing (floatation costs equal $15 per bond – this reflects an 8% before tax cos..

  Purchase home and pledged home as collateral for loan

Ted borrowed $140,000 from ABC Bank to purchase a home and pledged the home as collateral for the loan.

  Evaluating whether to issue bonds or preferred stock

Cameron Corp. is evaluating whether to issue bonds or preferred stock. Which of the following statements is correct?

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