Answer:
The impairment loss of $161m is jounalized below:
Account Debit Credit
$m $
m
Loss on impairment 161.00
Goodwill 161.00
Being impairment recorded
The impairment test on Marin division of Santana that gave rise to impairment loss of $161 m found in the attached spreadsheet
Explanation:
Please note excel formula used in each cell.
<u>Answer:</u>
Excise tax :$0.30 tax on a gallon gasoline
Consumption tax : 20% tax on wages earned
Income tax : 9% tax on the sale of luxuries
<u>Explanation:</u>
Excise tax are the taxes charged to individuals on purchase of certain goods. Excise taxes are included with the price of the product. One of the major excise tax is charged on the gasoline for vehicles.
Consumption tax are the indirect taxes that are charged on usage of goods and services. They are collected in the form of sales tax and value added tax.
Income tax is the tax collected by the government for earning money through business or work.
Answer:
b. supply of dollars in the market for foreign-currency exchange shifts left
Explanation:
In the case when the expected return on the US assets should be rise while keeping other things constant so it reduced the dollar supply because the investors in US would begins switching the international investment to the domestic due to this it reduced the supply. This cause to shifting the supply curve to the left
Therefore the option b is correct
Answer:
A.) ALPHA
Portfolio A = 8.5%
Portflio B = 13.5%
B.) Sharpe measure
Portfolio A = 0.1519
Portflio B = 0.1479
Explanation:
T- bill rate (Rf) =5%
S&P 500 index ( Rm) = 10%
Portfolio A;
Expected rate of return = 9.1%
Beta (B) = 0.7
Standard deviation (s) = 27%
Portfolio B;
Expected rate of return = 12.1%
Beta (B) = 1.7
Standard deviation = 48%
Required rate of return for both portfolios;
Rf + B × (Rm - Rf)
Portfolio A :
5% + 0.7 ×(10% - 5%) = 5% + 0.7 × (5%)
5% + 3.5% = 8.5%
Portfolio B :
5% + 1.7 ×(10% - 5%) = 5% + 1.7 × (5%)
5% + 8.5% = 13.5%
A) Alpha(A) of Portfolio A and B ;
A = Expected return - Required return
Alpha of portfolio A :
9.1% - 8.5% = 0.6%
Alpha of Portfolio B:
12.1% - 13.5% = - 1.4%
B.) Sharpe measure for portfolio A and B;
Sharpe ratio = (Expected rate of return - Rf) / s
Portfolio A = (9.1% - 5%)/27% = 0.1519
Portfolio B = (12.1% - 5%)/48% = 0.1479
I will choose Portfolio A
