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Leto [7]
3 years ago
5

Nichols Enterprises has an investment in 30,500 bonds of Elliott Electronics that Nichols accounts for as a security available-f

or-sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $14 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $18 per bond. Nichols should carry the Elliott investment on its balance sheet at:a. $442,000, the midpoint of Nichols' range of reasonably likely valuations of Elliott.b. $468,000c. $416,000d. Either $416,000 or $468,000 as either are defensible valuations.
Business
1 answer:
Alja [10]3 years ago
6 0

Answer:

30,500 bonds x $14 per bond = $427,000

Explanation:

Nicols Enterprises must carry the Elliot investment on its balance sheet using the fair market value of the stocks (value given by the stock market).

The reliability principle states that only transactions that can be proven have to be recorded. So how can Nichols prove that Elliott's stock is worth $18, or maybe $1,000 or even $1 million. They can´t prove any of that, that is why they have to use the fair market value.

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Pat starts a business called ValueCentral, the concept takes off, and the company has an IPO and goes public. The company is gro
defon

Answer:

Very small or no dividend

Explanation

Dividend is simply the distribution of profit made by company, firm e.t.c to its shareholders. Most startup company do pay little dividend due to the profit outcome but others do not. It is necessary to pay dividend to shareholders as it shows your devotion and commitment to look after and be in one mind with investors.

most companies that are just startups do not pay a dividend mostly during the early stage of growth. The revenue derived from startup is used to grow and develop the company and not to share with shareholders but sharing little is not bad a all.

3 0
3 years ago
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Zarrin [17]

Answer:

structural unemployment

Explanation:

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<u><em>Structural Unemployment</em></u>

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<em>For example, the work formerly done by Carl has now been taken over by robotics. Usually , this will lead to mismatch of skills because the skills possessed by Carls are no longer needed by his employer.</em>

Therefore, Carl is experiencing structural unemployment

8 0
3 years ago
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A. Menu Cost

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Svet_ta [14]

Answer:

True

Explanation:

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7 0
3 years ago
Read 2 more answers
Assessment
faust18 [17]

Answer:

false cause people they alr on the stock market

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3 years ago
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