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:
The final balance would be $24,616.34 at the end of 16 years of monthly compounded interest
Explanation:
The total compound interest would be $9,616.34 after 16 years.
Answer:
The answer is 14.87%
Explanation:
Solution
Given that:
A large company stock had an average return of =12.59%
The average risk free rate = 2.58%
A small company stocks average is =17.45
The next step is to find the risk premium on small-company stocks for this period
Thus,
The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate
So,
Risk premium on small-company stocks = .1745 - 0.258
=0.1487
Therefore the risk premium on small company stocks for the period was 14.87%
Answer:
OPPORTUNITY COST OF CAPITAL
Explanation: Opportunity cost of capital can be described as the incremental return a company foregoes when ever it is embarking on any internal investments.
The rule tries to show that a firm should only embark on projects or investment that will guarantee a higher rate of return after consideration of all the opportunity costs attached to the capital investment.
If the investment is a marketable security if the opportunity costs of capital is less than the expected rate of return,the investment is considering as a wrong choice.
Answer:
The effective rate of protection for Canada’s steel industry is 21%
Explanation:
The computation of the effective rate is shown below:
Steel percentage = (Production worth of steel) ÷ (Taconite worth)
= ($1,000,000) ÷ ($100,000)
= 10%
And the tariff rate for steel is 20%
And the taconite percentage is 10%
So, the effective rate would be equal to
= Tariff rate for steel + taconite percentage × steel percentage
= 20% + 10% × 10%
= 20% + 1%
= 21%
