Answer:
1. a) $150,000
2. c) $30,000
Explanation:
1) Goodwill of Controlling Interest = Purchase price - (FMV of Net Asset * % ownership)
= $1,600,000 - ( $1,850,000 * 80%)
= $120,000
Total amount of goodwill recognized at the date of acquisition = Goodwill of Controlling Interest / %ownership
= $120,000 / 80%
= $150,000
2. Amount of goodwill to be attributed to the non-controlling interest at the date of acquisition = Total amount of goodwill recognized at the date of acquisition - Goodwill of Controlling Interest
= $150,000 - $120,000
= $30,000
Answer: 11.2%
Explanation:
The required return of this stock can be calculated using the Capital Asset Pricing Model (CAPM) which is expressed as follows;
Required return = Risk free rate + beta ( Market return - risk free rate)
= 4% + 1.2 ( 10% - 4%)
= 11.2%
Answer:1%
ROE = Profit after interest and tax divided by total equity
$30000/30000shares= 100%
2. EPS = Profit after interest, tax and preference dividend divided by total common stocks
$30,000/30,000 = 100%
3. If Finance with debts
ROE = $26700/30000= 89%
EPS =&26700/30000= 89%
The use of financial leverage will make the probability distribution of ROIC to change.
Answer:
Poor
Explanation:
Automation has made certain jobs redundant and machines can now carry out most of the functions usually carried out by labour. As a result, the prospects for many types of jobs is low
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