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3 years ago

Your parents' income will be used to determine what your insurance will cost.

Business

1 answer:

Vinil7 [7]3 years ago

5 0

Answer:

That statement is false.

Explanation:

Income generally influence their credit scores, but it wouldn't influence the cost of insurance.

Insurance cost will be determined by the type of plan that your parents choose along the payment method. Insurance that provide large amount of coverage with higher percentage of claims tend to cost higher compared to insurance with the opposite characteristics.

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Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign

Alika [10]

Answer:

The statement is true, as it is an example of foreign direct investment.

Explanation:

Foreign direct investment is the direct investment by individuals or legal persons in production or business operations abroad. In this context, investments include both acquisition of foreign operations and expansion of own operations.

Foreign direct investment does not include the purchase of either shares or bonds per se. More specifically, the IMF has restricted direct investment on acquisitions to cases where the foreign investor owns 10% or more of the shares that give administrative rights in the business. Investment funds that can be classified as foreign direct investments therefore include equity deposits, reinvestments of dividends from the business, as well as the allocation of short-term and long-term loans between parent companies and subsidiaries.

3 0

2 years ago

If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc

Kitty [74]

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

an increase in inventory will result in a lower stock price
a decrease in the asset turnover ratio will result in a lower stock price
the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower

4 0

2 years ago

Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2017. Janex's reported earnings for 2

andrew-mc [135]

Answer:

(D) $3,588,000.

Explanation:

Consolidated net income is defined as the sum of net income of the parent company (minus income from investment in subsidiary and unrealized income from downstream sales) plus net income of subsidiaries, which results after deducting depreciation (or amortization), income from transactions with the parent company and unrealized gains in inventories.

In the example, the parent company is Cashen Co. and the subsidiary is Janex´s. Recall that a parent company is one that owns more than 50 percent of the shares of the subsidiary, in this case, it is 100%.

According to the information provided, Cashen Co's net income was $ 3,180,000 and neither income from investment in subsidiary nor unrealized income from downstream sales is reported, so it is not necessary to subtract anything.

On the other hand, we know that Janex´s reported earnings totaled $432,000. However, the amortization of allocations related to the investments ($ 24,000) must be subtracted here. Therefore, the net income of that company was $408,000 ($432.000 - $24.000).

Finally, we add the net income of both companies. That is, $ 3,180,000 + $ 408,000 = $ 3,588,000.

<em>Note: I want to point out that there is a typo in the question. It says: "What is the amount of consolidated net income for the year 2010?", instead of "What is the amount of consolidated net income for the year 2017?"</em>

8 0

3 years ago

Edwards Enterprises follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restric

VashaNatasha [74]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0

2 years ago

When Dollar General buys more than 50% of the stock of another company, Dollar General is called the parent of that company, and

sammy [17]

Answer:

Dollar General

Consolidated means that the financial statements of the parents have been combined with the financial statements of its subsidiaries so that the combined entities are presenting a single set of financial statements, as if they were one entity, which they are in the group sense.

Explanation:

For example, the income statement of Dollar General will be combined or consolidated with the income statement of one or all of its subsidiaries so that the investor has a view of the consolidated net income of the group. To achieve this, some transactions that were done with inter-group companies will be eliminated, especially when the transactions have not been completed with entities outside the group. For example, inventories bought from one company by another in the group, which have not been sold to the outside of the group will be eliminated so that the group does not assume to have made profits from itself.

7 0

2 years ago

Your parents' income will be used to determine what your insurance will cost.​

Your parents' income will be used to determine what your insurance will cost.