Answer:
$60 million
Explanation:
The computation of the value of operations after the repurchase is shown below:-
Total corporate value = Value of operation + marketable securities
(5 × $15 million) = Value of operation + $15 million
$75 million = Value of operation + $15 million
Value of operation = $75 million - $15 million
= $60 million
We simply applied the above formula so that the firm's value of operations after the repurchase could come
Answer:
<h3>Always make sure to write all the ideas down.
</h3><h3>Make no judgement.</h3><h3>Briefly discuss and elaborate on each idea as they are presented.
</h3><h3>Let people know they will be brainstorming in advance if possible
.</h3>
Explanation:
- One of the most basic rule of brainstorming includes the practice of inclusiveness. It is important to bring all ideas together and write it down as in a brainstorming session, quantity matters over quality.
- Each and every idea should be <u>respected by all</u>. One should not make any judgement of another person's idea.
- It is important to briefly discuss each idea as they are presented as to fully <u>comprehend the main motive behind each idea</u>. Some ideas become more refined as we discuss more upon it.
- It is also important to let the members know that there will be a brainstorming session in advance so that <u>each member can think of an idea before the actual session</u> takes place.
Answer: a) Documentation Procedures
b) Independent Internal Verification
c) Physical Control
Explanation:
I'll list the internal control principle in bold letters and then explain them a little.
(a) Company checks are prenumbered. DOCUMENTATION PROCEDURES.
These are meant to provide a paper trail to identify the events that occur in a company and pre numbering check ensures that the number is always known.
(b) The bank statement is reconciled monthly by an internal auditor. INDEPENDENT INTERNAL VERIFICATION.
Here the company runs its own checks and balances to ensure that they are in good shape.
(c) Blank checks are stored in a safe in the treasurer’s office. PHYSICAL CONTROL.
This refers to the use of physical devices to keep documents and assets safe and can include safes, vaults and safety deposit boxes.
Answer:
C) $250,000
Explanation:
Larkin's investment in Devon at the end of the year = carrying amount at the beginning of the year + Larkin's share of Devon's income - Larkin's share of Devon's dividends
= $200,000 + ($600,000 x 25%) - ($400,000 x 25%)
= $200,000 + $150,000 - $100,000 = $250,000
