Answer and Explanation:
The computation is shown below:
a. Marpor's value without leverage is
But before that first we have to calculate the required rate of return which is
The Required rate of return = Risk Free rate of return + Beta × market risk premium
= 5% + 1.1 × (15% - 5%)
= 16%
Now without leverage is
= Free cash flows generates ÷ required rate of return
= $16,000,000 ÷ 16%
= $100,000,000
b. And, with the new leverage is
= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)
= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)
= $93,750,000 + $14,000,000
= $107,750,000
Answer: Option A
Explanation: Behavioral finance refers to the impact of investors behavior and emotions on their decision making. It is based on the concept that investors are not rational decision makers and sometimes get biased as according to their preferences.
Thus, the investors can study this concept so they can fully understand how the psychological factors influence their decision making. This can help the investors in rational decision making for the future.
Hence from the above we can conclude that the correct option is A.
This wouldn’t by chance have multiple choice options would it?
Answer:
A. Check the Insurance and Liability section of your mutual aid agreement
Explanation:
Firstly, a mutual aid agreement is a documents that sets the rules or terms under which help or assistance can be provided between two parties, jurisdictions, NGO, etc.
From the above question, it is important that before any step is taken, it is important to check the insurance an liability section of the mutual aid agreement. This will help to ascertain if indeed you are responsible for the healthcare payment of the responders as claimed by the participating jurisdiction.
This helps to clarify who is responsible for the responders.
Cheers
One of the steps in solving this problem is this one:
As we know as shown above, the joournal entry for 2014 and 2015 will include the investment balance, increases and decreases to equity and intra-entity profits realized and deferred. Also the balance of the acquisition needs to be calculated.
Calculation of the book value of the purchase made as the book value of Company K times percent purchased:
400,000 * 0.40 = 160,000
Then, calculate the difference in the acquisition and the book value of the purchase:
210,000 - 160,000 = 50,000