Answer:
$7,176,000
Explanation:
We will calculate the sbsidiary net gain and add it to the firm income to get the consolidated net income:
Little income 864,000
amortization on acquisition investment <u> (48,000) </u>
net gain on subsidiary 816,000
Big income 6,360,000
big income + income from subsidiary = 6,360,000 + 816,000 = 7,176,000
This will be the consolidated net income.
The dividends do not impact the net income.
Answer:
Total $53.0656 (millions)
Explanation:
We will need to add the present value of the coupon payment
and the present value of the maturity date
<u>present value of the annuity:</u>
C= 60 million x 5% /2 1.5
time= 20 years 2 payment per year = 40
rate = 6% annual = 0.06/2 = 0.03 semiannually
PV $34.6722
<u>present value of the bonds:</u>
Maturity 60
time 40
rate 0.03
PV $18.3934
<u>The value of the bond will be the sum of both</u>
PV c $34.6722
PV m $18.3934
Total $53.0656
Answer:
.66; .34
Explanation:
Calculation of weight of the stock and weight of the risk free asset
stock expected return = 17.3%
stock beta value = 1.48
risk free asset beta value is = 0
risk free asset return = 4.6
portfolio beta is = 0.98
let taken weight of the stock is X
so weight of the risk free asset is = 1-X
portfolio beta = stock weight*beta+riskfree weight*beta
0.98 = X*1.48+(1-X)*0
0.98= 1.48X+0
1.48X= 0.98
X = 0.66
66%
weight of the risk free asset is = 1-0.66
= 0.34
= 34%
Answer:
c. Simplified Employee Pension (SEP)
Explanation:
A simplified employee pension (SEP) is known as a retirement package that a company establish for the employees in the company. Furthermore, the company allows a monthly contribution in form of a tax deduction from the employees' monthly salaries. Therefore, based on the description provided in the problem, the correct answer is a Simplified Employee Pension (SEP).
Answer:
D, sales comparison approach, income approach, cost approach
Explanation:
The cost approach of appraisal of real estate is a method of valuation that is based on the belief that informed buyers of a property would not pay more than they would for a product of similar utility. But then the method of valuation expects a buyer to pay for a property the amount it would cost to build a similar property. Cost approach can be calculated by
Property Value = Land Value + (Cost New – Accumulated Depreciation).
Income approach of real estate appraisal is a method of valuation that establishes the fact that the fair value of a property should be calculated by the amount of money the property generates. It is calculated by dividing the net operating income by the capitalization rate.
Sales approach appraisal method is also a method of valuation of real estate that involves comparing a property that is up for sale with properties that has similar characteristics or features and that was sold recently. It uses the individual characteristics of the property to detrmine the value of the property.
Cheers.
