Answer:
Kelly and First city bank
Explanation:
The insurable interest means the party has the right to insured his /her property. It involves the financial interest in the property without which the insurable interest can't be involved.
In the given scenario, the Kelly purchase a house from John for $100,000. For which she borrows $75,000 from the city bank and $25,000 down payment. In this two-party have a financial interest in the property i.e Kelly and the first city bank
Answer:
When you are preparing the cash flow statement, some adjustments are made that actually increase the cash flow even if the net income has decreased, for e.g.:
- lower accounts receivables
- lower inventories
- higher depreciation and amortization expenses
- higher accounts payables and accruals
- sale of investments
- new long term debt
- less dividends distributed
- new capital raised
Answer:
A. $549000
Explanation:
Given information
Number of outstanding stock of Sherry, Inc = 60%
The cost of the land = $207,000
Fair value at the acquisition date = $549,000
By considering the above information, the value reflected in a consolidated balance sheet is $549,000.
The historical principle says that the fixed assets should be recorded at the purchase price or acquisition cost only and the same is to be considered
Answer:
D. Zero-tranche CMO with estimated 5 years life
Explanation:
Answer:
D) a long stock, short call hedge with a limited loss potential.
Explanation:
When you use a short call to hedge a long call, it is called a covered call. In this case, the covered call is used to hedge against possible decreases in the price of the stocks. Since the long call was made, we can assume that the investor believes that it is more likely that the price of the stocks will increase.
