Answer: decrease
Explanation:
It should be noted that there is an inverse relationship between bonds and interest rate. This implies that when there is a rise in interest rates, the prices of bond will fall and when there is a fall in interest rates, the prices of bond will rise.
Since bonds typically pay fixed interest rate, this will becomes more attractive when there's a fall in interest rates and more investors will demand for bond which will invariably lead to rise in price.
Answer: Both the current portion of the tax expense of $40 and the deferred portion of the tax expense of $10.
Explanation:
When calculating the net income on the income statement, both the current portion of the tax expense as well as the deferred portion should be included.
In this scenario that would lead to a net income of:
= Pretax accounting income - Current portion - Deferred portion
= 195 - 40 - 10
= $145
Answer:
Book value per share of Weyerhaeuser Incorporated is $26 per share.
Explanation:
Book value per share (BVPS) refers to the ratio of the common shareholders' equity of a company to its number of shares outstanding. This can be expressed mathematically as folllows:
Book value per share = Common shareholders' equity / Number of common shares outstanding .......................... (1)
Where;
Common shareholders' equity = $26 million
Number of common shares outstanding = $1 million
Substituting the values into equation (1), we have:
Book value per share = $26 million / $1 million = $26 per share.
Therefore, book value per share of Weyerhaeuser Incorporated is $26 per share.
Answer:
$54,000
Explanation:
The computation of the residual income is shown below:
= Operating income - minimum return
where,
operating income = $234,000
And, the minimum return equal to
= Invested asset amount × minimum rate of return
= $1,800,000 × 10%
= $180,000
Now put these values to the above formula
So, the value would equal to
= $234,000 - $180,000
= $54,000