Complete Question:
Venture capital:
Answer:
c. is financing obtained from investment firms that specialize in financing small, high-growth companies.
Explanation:
Venture capital can be defined as a form of financing through which an investor provide capital for small, early-stage and high-growth companies in exchange for an equity stake or partial ownership of the company.
This ultimately implies that, venture capital is a type of financing obtained from investment firms that mainly specialize in providing finance for small, high-growth companies. Also, these small, high-growth companies or businesses are typically owned by individuals or a small group of people.
<em>In conclusion, venture capital involves making capital investment in a small business with high growth potential in exchange for partial ownership or an equity stake in the business.</em>
Answer:
$679,700
Explanation:
I believe Mickelson is the person preparing the books for Indigo Inc.
This question tests your knowledge of revaluation and its application to financial statements. It indirectly checks your knowledge of depreciation also.
A quick definition of terms would make it clearer.
Depreciation is the systematic allocation of the price of an asset over its useful life. That is once an asset (non-current) is purchased, it cannot be used up immediately in one financial year, hence accountants usually want to spread the use of the asset and match it with whatever revenue they get from the use of the asset (an application of prudence concept).
But land does not depreciate, rather it appreciates over time. Due to the fact that land appreciates over time, it would be misrepresentation on the part of Mickelson to report the value of the asset in December 2017 at the price in which the land was purchased in 2000.
Because land appreciates over time, a revaluation is more appropriate. this revaluation compares the carrying value of the land with the fair value on the land as at the date of revaluation (comparing $418,200 with $679,700) and the higher is used.
Hence to faithfully represent the current details of the status of the land, the IFRS (International Financial Reporting Standards) states that the entity should record the value of land at fair value.
I hope this is clear and easy to understand.
Other concepts you might want to check out are;
depreciation
carrying amount
revaluation surplus
fair value
Answer:
The expected rate of return in the market 13.29%.
Explanation:
The expected rate of return on a stock is 16.48%.
The stock has a beta of 1.33.
The yield from treasury bill is 3.65%. Since treasury bills are risk free we will consider this risk free rate of return.
The inflation rate is 2.95%.
Expected return on stock=risk free rate+beta(market return-risk free rate)
16.48% = 3.65% + 1.33 (market return - 3.65% )
16.48% - 3.65% = 1.33 ( market return - 3.65% )
12.83% = 1.33( market return - 3.65% )
Market return - 3.65% = 
Market return - 3.65% = 9.64%
Market return = 9.64% + 3.65%
Market return = 13.29%
