Answer:
As a disclosure only. No liability is reported
Explanation:
According to the International Accounting Standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets, contingent liability can only be recorded if the likelihood of recording of the loss is reasonably probable and in this case the chances of occurence of the liability is reasonably possible which must not be recorded. The only effect would be disclosing the litigation matter and not including the liability amount that will arise if it goes wrong.
Answer:
3.7 years
Explanation:
Given that,
Initial investment = $354,000
Net income = $47,000
Depreciation = $48,000
Annual cash flow:
= Net income + Depreciation
= $47,000 + $48,000
= $95,000
Payback period:
= Initial investment ÷ Annual cash flow
= $354,000 ÷ $95,000
= 3.7 years
The payback period of the project is closest to 3.7 years.
Answer:
It would be wise to use the CAPM capital cost.
Explanation:
It should use the Capital Assets Pricing Model.
The market rate is not sufficient. It is included in the CAPM calculation to asses the impact in the firm or industry beta and the free-risk rate.
The return for the dividend grows model is calculated with the current stock price and expected dividends. We can't know for sure if the stock wasn't undervalued or overrated at the moment of solving for return.
The CAPM model takes consideration of the current market interest rate, the own non-diversifiable risk of the firm and the fact of a free-risk interest rate. It is the better option
Answer: They are applying a task separation policy that indicates that employees must change their roles regularly
Explanation: This change management helps to reduce the planned interruptions of the changes, so that everyone learns all the tasks and in case of a resignation, have the solution to fill the position and train new employees.
I think that any bank or incorporated banking institutions involved can become members.
