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Sauron [17]
1 year ago
13

Global company holds a portfolio of equity securities. the company intends to sell the securities during the next accounting per

iod. the company should classify the investment as:_______
Business
1 answer:
Julli [10]1 year ago
8 0

The global company holds a portfolio of equity securities. the company intends to sell the securities during the next accounting period. the company should classify the investment as <u>A valuation allowance account is increased or decreased.</u>

<h3>What is the ultimate holding period for the securities held under the held-for-trading category?</h3>

Held-for-trading security is a debt or equity investment that investors purchase with the intent of selling within a short period, usually less than one year. Within that time frame, the investor hopes to see an appreciation in the value of the deposit and sell it for a profit.

<h3>What is the distinction between held-to-maturity trading and available-for-sale securities?</h3>

Held to maturity securities are guarantees that companies purchase and intend to hold until they mature. They are unlike trading protection or available for sale securities, where companies don't usually hold on to protection until they reach maturity

To learn more about global company, refer

brainly.com/question/2824360

#SPJ4

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On January 2, 2017, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2017. The
frozen [14]

Answer:

the decrease in the value of the retained earning is $172,500

Explanation:

The computation of the decrease in the value of the retained earning is given below:

The dividend of the stock is

= (25,000 shares - 2,000 shares) × 10% × $75

= $172,500

Since there is the stock dividend of $172,500 so it ultimately reduced the retained earning account by $172,500

8 0
2 years ago
A portfolio consists of the following two funds. Fund A Fund B $ Invested $ 12,000 $ 8,000 Weight 60 % 40 % Exp Return 15 % 12 %
vova2212 [387]

Answer:

Sharpen Ratio   =            <u>    Rp  - Rf</u>

                         standard deviation of portfolio

                        =    <u>13.8%  - 3.6%</u>

                                     173.11%

                              =   0.05892

                              = 0.059

workings

Return of portfolio   =   Ra*wa  +  Rb*Wb

                            =  15%*0.6  +  12%*0.4  

                           =   9%  +  4.8%  =  13.8%

Standard deviation of portfolio =  square root of variance

= √ stdA²wa² + stadB²wb² + 2wawbcorrAB

= √(24%*0.6)² +(14%*0.4)²  + 2*0.6*0.4*1.27

=  √207.36% + 31.36% + 0.6096

=  √2.9968

= 1.73

=  173.11%

                                                 

Explanation:

7 0
3 years ago
TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc
valentina_108 [34]

Answer:

$1.3 per share

Explanation:

Data provided in the question:

Number of shares outstanding of TJ = 2,500

Market price = $16.70

Number of shares outstanding of Corner Grocery = 3,000

Price per share of Corner Grocery = $22.50

Cost of acquiring TJ's share = $45,000

Now,

Merger Premium per share = [ Cost of acquiring TJ's share - Market price of TJ's shares ] ÷ Number shares TJ's outstanding

= [ $45,000 - ( $16.70 × 2,500)] ÷ 2,500

=  [ $45,000 - $41,750 ] ÷ 2,500

= $3,250 ÷ 2,500

= $1.3 per share

4 0
3 years ago
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $
inessss [21]

Answer:

Residual income is therefore $732,000.

Explanation:

This can be computed by following the following steps:

Step 1: Calculation of ending net book value

<u>Particulars                                           $'000    </u>

Beginning investment                         6,900

add: Additional investment                 8,100

Less: Depreciation - Other             <u>   (2,850)  </u>

Ending net book value                   <u>    12,150  </u>

Step 2: Calculation of Minimum required return

Minimum required return = Ending net book value * Required return rate = $12,150,000 * 12% = $1,458,000

Step 3: Calculation of profit (loss) on disposal

First year depreciation on investment = (Investment cost  - Salvage value) / Useful life = ($6,600,000 - $660,000) / 3 = $1,980,000

Profit (loss) on disposal = Salvage value - Investment cost  - First year depreciation on investment = $660,000 - $6,600,000 - $1,980,000 = $3,960,000 loss

Step 4: Calculation of residual income

<u>Particulars                                                       $'000    </u>

Given operating profit of the division             6,150

Less: Loss on disposal                                <u>  (3,960)  </u>

Revised operating income                             2,190

less: Minimum required return                   <u>   (1,458)  </u>

Residual income                                          <u>     732    </u>

Residual income is therefore $732,000.

7 0
3 years ago
Cross-docking is when vendors ship merchandise prepackaged in the quantity required for each store and when the products arrive
svetlana [45]

Answer: True

Explanation:cross docking is often used because it a simple process and to increase efficiency in operations .

The definition above is similar to numerous definition of cross docking and captures the essential features of cross docking .So the answer is true

5 0
3 years ago
Read 2 more answers
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