Answer:
Option (a) is correct.
Explanation:
Given that,
Net income = $600,000
Difference between fair value and carrying value = $112,500
70%-owned subsidiary of Pickle Corporation.
Non-controlling interest in net income:
= [Net income - Difference between fair value and carrying value] × 0.3
= [$600,000 - $112,500] × 0.3
= $487,500 × 0.3
= $146,250
Answer:
Bond price= 1,124,622
Explanation:
Giving the following information:
Face value= $1,000,000
Number of periods= 10*2= 20
Cupon rate= 0.12/2= 0.06
YTM= 0.1/2= 0.05
<u>To calculate the bond price, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 60,000*{[1 - (1.05^-20)] / 0.05} + [1,000,000 / 1.05^20]
Bond Price= 747,732.62 + 376,889.48
Bond price= 1,124,622
Answer: Option (B) is correct.
Explanation:
Correct option: Any central bank purchase of assets results in an increase in the domestic money supply, while any central bank sale of assets causes the money supply to decline.
This is basically one of the monetary policy instrument which helps the central bank in order to control the money supply in the economy.
If central bank wants to contract the money supply then central bank sell some of the assets in the market to reduce currency in circulation. After the implementation of this policy, domestic consumers left with less cash in hand and hence they demand less.
On the other hand, if central bank wants to increase the money supply then central bank purchase some of the assets from the market to increase the currency in circulation. After the implementation of this policy, domestic consumers are with more cash in hand and hence they demand more.
∴ This is the statement that is most correct.
Answer:
25%
Explanation:
Data provided
Risk free return = 3%
Beta = 2
Expected return on the market portfolio = 14%
Risk-free rate of return = 3%
The computation of cost of retained earnings is shown below:-
Cost of retained earnings = Risk free return + Beta × Risk premium
= 3% + 2 × (14% - 3%)
= 3% + 2 × 11%
= 3% + 0.22
= 25%
Therefore, for computing the cost of retained earning we simply applied the above formula.
Answer:
Informal communication
Explanation:
Informal communication happens outside of any organization ‘s recognized channels of message transaction. It is kept separate from professional workflows. It has grown importance as it aids in creating and maintaining networks and foster interpersonal relationship