case he must search for a job‚ he has remained intellectually active. Which term best describes Bob’s activity? a. Moral Hazard b. Screening c. Adverse Selection d. Signaling Answer D 3. A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%‚ calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments. (Chapter 2) a. $857.96 b. $949.24 c. $1057.54 d. $1000.00 Response: PV = (40/1
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its industry peers. SDB’s asset quality‚ earnings capability and capital adequacy are the three aspects I will pay attention to when evaluate its financial performance. Then I will discuss whether it is appropriate for Newbridge to pay 1.6 times book value for 18% shares in SDB. And what is appropriate range for the price Newbridge can offer. The objective of this report it to assist Newbridge to make right decisions on whether to invest SDB or not and if invest what is appropriate price to pay
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capital for Nike. The first mistake that Ms. Cohen made was that she used book values instead of the market values when computing the weights for the WACC. The second mistake that she made was that she calculated the cost of debt using historical values. We calculated the yield in maturity of the debt as the bond doesn’t mature until the year 2021 but instead of using book values for equity we calculated the market value of equity as well. The third mistake that was made was Ms. Cohen’s method in
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96 Accounting Standard (AS) 10 Accounting for Fixed Assets Contents INTRODUCTION Definitions EXPLANATION Identification of Fixed Assets Components of Cost Self-constructed Fixed Assets Non-monetary Consideration Improvements and Repairs Amount Substituted for Historical Cost Retirements and Disposals Valuation of Fixed Assets in Special Cases Fixed Assets of Special Types Disclosure MAIN PRINCIPLES Disclosure Paragraphs 1-6 6 7-17 8 9 10 11 12 13 14 15 16 17 18-37 37 134 AS 10 (issued
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outstanding common stock of Bremm‚ Inc.‚ for $734‚000. This investment gave Wilkinson the ability to exercise significant influence over Bremm. Bremm’s assets on that date were recorded at $4‚079‚000 with liabilities of $929‚000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2012‚ Bremm reported net income of $257‚000. In 2013‚ Bremm reported net income of $315‚250. Dividends of $72‚000 were paid in each of these two years
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KRBL Analysis Report By‚ Team: Heretically Astute Members: Christy B
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decrease in value. 7. The book values per share for the same four years discussed in the preceding question were: a. Compute the ratio of price to book value for each year. P/B = Share Price / Book Value per Share Share Price Book Value per Share 1998 $1.18 $ 0.24 / $1.18 = $0.20 1999 $ 1.55 $ 0.31 / $1.55 = $0.20 2000 $2.29 $0 .55 / $2.29 = $0.24 2001 $ 3.26 $ 0.27 / $3.26 = $0.08 b. Is there any dramatic shift in the ratio worthy of note? Yes‚ the book value per share
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company developed a distinctive brand with loyal customers SC being a liqueur does not need to age and can be produced and sold much faster than the traditional whiskey line. With an acquisition‚ shareholders value will lead to an increase in both earning per shares and the share value. Strong balance sheet with higher than average sales/assets ratio of 2.49 in 1977‚ the company has more profitable assets that can generate more earnings by minimizing the fixed cost per unit as a result of higher
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Case Study Analysis for Symphony Seeds The following analysis of Symphony Seeds will go through the following topics – i. The environment and likely organizational structure of Symphony Seeds Sales (SSS) and Symphony Research Institute (SRI)‚ ii. Role and Importance of Land Development Corporation (LDC)‚ iii. Problems of evaluating SRI and SSS from Conglom’s perspective and a comment on their inter-company trading process Based on the case study‚ the environment and organizational
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com/ACC-422/ACC-422-Week-4-WileyPLUS-Assignment For more classes visit www.assignmentcloud.com ACC 422 Week 4 WileyPLUS Assignment Exercise 11-4 Wenner Furnace Corp. purchased machinery for $650‚070 on May 1‚ 2012. It is estimated that it will have a useful life of 10 years‚ salvage value of $34‚950‚ production of 559‚200 units‚ and working hours of 25‚000. During 2013‚ Wenner Corp. uses the machinery for 2‚650 hours‚ and the machinery produces 59‚415 units. From the information given‚ compute the depreciation charge for 2013 under
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