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weqwewe [10]
4 years ago
7

The equity method of accounting for an investment is used when a company purchases:_______. A) More than 20% of the equity secur

ities of a second company B) More than 20% of the debt securities of a second company C) 15% of the equity securities of a second company D) 100% of the debt securities of a second company
Business
1 answer:
inysia [295]4 years ago
3 0

Answer: A

Explanation:

The equity method of accounting for an investment is a type of accounting that is used when an investor has a significant impact on the investee but does not use control it fully, just like the relationship between a parent company and its branch. In cases where the equity method of accounting is used, the investee is referred to as an affiliate or an associate.

An investor can only have a significant influence over the investee if it owns 20% to 50% of the shares or voting rights of the investee.

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A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.6
tatyana61 [14]

Answer:

NPV is positive,the project should be accepted

Explanation:

In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.

The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.

Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80  

Net present value=$ 151,509.80-$125,374.60=$ 26,135.20  

The investment has a positive NPV,hence should be accepted

4 0
3 years ago
Job rotation:a.refers to employees frequently changing their jobs.b.increases the difficulty level of tasks.c.involves moving em
soldier1979 [14.2K]

Job rotation involves moving employees from one job to another.

Explanation:

Rotation of jobs is a strategy used by certain employers for rotating assigned work for their workers during their work. For a number of reasons managers use this strategy.

The rotation of jobs involves shifting workers from one position to another systematically. Jobs will not change, but staff will be going from work to work. For example, a management staff member may spend most of the week taking care of a company's reception area, interacting with customers and requests.

6 0
3 years ago
You invested a total of $8,400 in shares of the three stocks at the given prices, and expected to earn $248 in annual dividends.
Taya2010 [7]

Answer:

WSR's stock = 100

HCC's stock = 50

SNDK stock = 50

Explanation:

let W = WSR's stock

let H = HCC's stock

let S = SNDK stock

W + H +S = 200

16W + 56H + 80S = 8,400

(16 X 7%)W + (56 X 2%)H + (80 X 2%)S = 1.12W + 1.12H + 1.6S = 248

-1.12(W + H +S) = -1.12 x 200

-1.12W - 1.12H - 1.12S = -224

1.12W + 1.12H + 1.6S = 248

0.48S = 24

S = 24/0.48 = 50

W + H + S = W + H + 50 = 200

W + H = 150

16W + 56H + 80S = 16W + 56H + 4,000 =8,400

16W + 56H = 4,400

-16(W + H) = -16 X 150

-16W -16H = -2,400

16W + 56H = 4,400

40H = 2,000

H = 2,000 / 40 = 50

W + H +S = 200

W + 50 + 50 = 200

W + 100 = 200

W = 100

7 0
4 years ago
In this example of an "inflation cooling" tax increase, the economy was initially struggling with a ________ annual rate of incr
tia_tia [17]

Answer:

2.34

Explanation:

the economy was initially struggling with a 2.34 annual rate of increase in the price level.

4 0
3 years ago
A company is considering a capital investment of $16,000 in new equipment which will improve production and increase cash flows
AnnyKZ [126]

Answer:

PAYBACK PERIOD

Year        Cashflow       Cummulative cashflow

                     $                           $

 0            (16,000)               (16,000)

  1             8,000                  (8,000)

  2            6,000                  (2,000)

  3            5,000                   3000

  4            6,000

  5            5,000

Payback period

= 2 years + 2,000/5,000

= 2.4 years

Explanation:

In this case, we need to deduct the initial outlay from the cashflows for each year until the initial outlay is fully recovered.

7 0
4 years ago
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