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lawyer [7]
3 years ago
9

A company acquires a rather large investment in another corporation. What criteria determine whether the investor should apply t

he equity method of accounting to this investment?
Business
1 answer:
kondaur [170]3 years ago
8 0

Answer:

Explained below:

Explanation:

The equity method of accounting is the method of producing investments in other companies. If a company invests in another corporation and holds 20 to 50 % share of the particular corporation and hence has a notable impact on the latter's administration then the investor (company) should apply the equity method of accounting to this investment and reports such investments on its balance sheet as an asset..

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Sarah found success as an entrepreneur by employing a relationship marketing strategy. The goal of this strategy is to:_______
Brums [2.3K]

Answer:

work closely with existing customers to better satisfy their wants and needs.

Explanation:

Relationship marketing is simply the development, growth, and sustaining of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit of parties involved. It emphasize is placed more in retaining or sustaining customers because new customers are more expensive compared to existing customers and can help an organisation have long-term, cost-effective links with individual customers for benefits between both sides.

7 0
3 years ago
Balsam City's library board is appointed by the city council, which has agreed to subsidize the operating costs of the library a
Ludmilka [50]

Answer:.A. The library is a component unit.

Explanation: Library is a place where books are collected and kept for the use of students and other interested persons,this books collection can be in soft copies and hard copies.

Most modern libraries have internet facilities which helps the users to gain a better access to a wide range of books.

According to the GAAP(GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) THE BALSAM CITY'S LIBRARY REPORT IS A COMPONENT UNIT

8 0
3 years ago
Associated Breweries is planning to market unleaded beer. To finance the venture, it proposes to make a rights issue with a subs
arlik [135]

Answer:

Number of new shares:

= 140,000×(1÷2)

= 70,000

Amount of new investment:

= 70,000×$10

= $700,000

Total value of company after issue:

= $700,000+140,000×$40

= $6,300,000

Total number of shares after issue:

= 140,000+70,000

= 210,000

Share price after issue:

= $6,300,000÷210,000

= $30

Explanation:

4 0
4 years ago
Your social media promotion can either narrowly target 50,000 users with an estimated click rate of 10% or broadly
Sunny_sXe [5.5K]

Answer:

Narrow targeting

Explanation:

1% of 250,000 is 2,500

10% of 50,000 is 5,000

3 0
3 years ago
The real risk-free rate is 3.05%, inflation is expected to be 3.60% this year, and the maturity risk premium is zero. Ignoring a
natulia [17]

Answer:

Ans. The equilibrium rate of return on a 1-year Treasury bond is 6.65% (please check the explanation)

Explanation:

Hi, well, this type of bonds exist so people can avoid the time value of money risk, in other words, to keep money save from inflation and provide a risk free return at the same time. From a part of the text I can tell that the person who wrote it wanted to add up the risk free rate and the inflation rate, that is 3.05%+3.60% =6.65%.

This is why I wrote this answer, but the truth is that since they are both effective rates (risk free rate and inflation), they need to be add as effective rates, that is:

(1+r(e))=(1+rf)*(1+Inf)

Therefore

r(e)=(1+rf)*(1+Inf)-1

r(e)=(1+0.0305)*(1+0.036)-1=0.0676

So the real equilibrium rate of return is 6.76%, but for the sake of the question, I wrote 6.65%.

Best of luck.

6 0
4 years ago
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