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3 years ago

According to the Investment Company Act of 1940, the definition of "investment company" could include which of the following

Business

1 answer:

kicyunya [14]3 years ago

7 0

Answer:

Option (B) is the right answer.

Explanation:

According to the investment company Act of 1940, the investment companies are those companies whose main business is to gathers investment capital to invest them in marketable securities.

Hence According to the scenario, the most appropriate answer is option (B).

While the other option is incorrect because of the following reason:

Brokers/dealers can not be considered as an investment company because they are not the company.

Pooled investments in metals are not an investment company but considered as the commodity pool.

Insurance companies are also not investment companies.

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How does a bond issuer decide on the appropriate coupon rate to set on its bonds?

Novay_Z [31]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

4 0

2 years ago

You are considering an investment in fields and struthers, Inc, and want to evaluate the firm's free cash flow From the income s

kirill [66]

Answer:

A.) $81,100,000

B.) $64,000,000

C.) $17,100,000

Explanation:

EBIT = $90 million

Tax rate = 21%

Depreciation = $10 million

gross fixed assets increased by $56 million

current assets increased by $44 million

current liabilities increased by $36 million

A.) Operating Cash flow for 2021

EBIT + Depreciation - (EBIT × Tax rate)

$90, 000,000 + 10,000,000 - (90,000,000×0.21)

100,000,000 - (18,900,000) = $81,100,000

B.) Investment in Operating capital for 2021:

Increase in gross fixed asset + (increase in current asset - increase in liability)

$56,000,000 + ( $44,000,000-$36,000,000)

= $56,000,000 + $8,000,000

= $64,000,000

C.) Free cash flow

Operating Cash flow - investment in operating

$81,100,100 - $64,000,000 = $17,100,000

3 0

2 years ago

If a gain of $221000 is realized in the cash sale of a building having a book value of $882000, the total amount reported in the

djyliett [7]

Answer:

$1,103,000

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

For assets disposed, the amount received from the disposal is the amount recorded as an investing activity.

Amount received - Book value of asset = Gain on disposal

Amount received = $221000 + $882000

= $1,103,000

8 0

3 years ago

What are some advantages of students being exposed to computer software? (as it relates to Accounting)

ivann1987 [24]

Answer:

There are many advantages in students being exposed to accounting softwares.

-There productivity increases as they can engage in more work in less time

-The accuracy of the accounting process increases as well, mainly lyrics because there is no room for human errors

-the process becomes easier and less time consuming, this makes accounting less complicated and more attractive as a subject for the students

Explanation:

5 0

3 years ago

Read 2 more answers

What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 7 years if the current price is $500. Plea

Softa [21]

Answer:

0.104

Explanation:

We are to determine the yield to maturity of the bond

yield to maturity can be determined using a financial calculator

Cash flow in year 0 = -500

Cash flow each year from year 1 to 6 = 0

Cash flow in year 7 = 1000

YTM = 10.4%

To find the YTM using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

6 0

2 years ago