Answer:
a. Is JV a variable interest entity (VIE)?
Yes, JV should be considered a variable interest entity. Basically both AutoCo and ElectricCo share JV's board, but ElectricCo didn't have the money to start a company or even be part of a joint venture. ElectricCo's equity is financed by AutoCo, so ElectricCo has basically no no equity at risk. Even the debt acquired by JV is backed by AutoCo, but AutoCo does not control JV on its own.
Basically ElectricCo's contribution is technology, and AutoCo provides everything else, but both control the company with one side (ElectricCo) not having enough money to invest but doing so through financing.
b. Which entity, if any, should consolidate JV?
AutoCo must include JV in its consolidated balance sheet since it owns 60% of the company and the products manufactured by JV are sold under AutoCo's brand.
A bond amortization schedule for all three years of the bond's life
principal 10,000
interest paid 500
principal use PV of $1 at 4% for 3 years
10000 * 0.889 = 8890
for interest use PV of an ordinary annuity
500 * 2.77509 = 1388
Issue price of bonds 10278
2) 31-Dec Year 1 Year 2
interest expense 411 408
bond liability 10189 10096
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Answer:
sai
Explanation:
Tăng cung tiền dẫn tới lãi suất bị giảm -> đầu tư tăng -> AD tăng
giảm thuế thu nhập -> thu nhập khả dụng tăng -> chi tiêu tăng -> AD tăng
Do đó, muốn duy trì tổng cầu ở mức ban đầu thì phải tăng thuế thu nhập
Answer:
Correlation coefficients relating the distributions to FFO = 0.8393
Correlation coefficients relating the distributions to EPS = –0.0880
Explanation:
Let X represents distributions, Y represents FFO, and, Z represents EPS.
Note: See the attached excel file for the calculations of Means of X, Y and Z as well as other values.
Therefore, we have:
Correlation coefficients relating the distributions to FFO = (Total of (X - Mean of X) * (Y - Mean of Y)) / ((Total of (X - Mean of X)^2) * (Total of (Y - Mean of Y)^2))^0.5 = 0.7529 / (0.8554 * 0.9408)^0.5 = 0.8393
Correlation coefficients relating the distributions to EPS = (Total of (X - Mean of X) * (Z - Mean of Z)) / ((Total of (X - Mean of X)^2) * (Total of (Z - Mean of Z)^2))^0.5 = –0.1391 / (0.8554 * 2.9200)^0.5 = –0.0880
Answer:
net incremental cost of buying is $2.26
Explanation:
<em><u>Make </u></em>
Direct materials $10.10
Direct labor $24.10
Overhead $16.10
Total 50.30
<em><u>Purchase</u></em>
Purchase Price $46.16
Overhead Cost ($16.10×40%) $ 6.40
Total $52.56
<u>Conclusion</u>
Purchase Cost ($52.56)> Make Costs ($50.30)
Therefore net incremental cost of buying is $2.26 ($52.56-$50.30)
