Answer:
Culver Corporation
Balance sheet as on December 31, 2017
Equity
Common Stock $758,700
Paid-in Capital in Excess of Par-Common Stock $208,400
Non-controlling Interest $36,200
Retained Earnings $122,300
Accumulated Other Comprehensive Loss <u>$153,200</u>
Total Equity <u>$1,278,800</u>
Explanation:
Equity accounts includes all the paid-in capital account common at par and excess of par and retained earning, non controlling interest and accumulated other comprehensive account.
The following account are non equity accounts, so these are not added to equity section of balance sheet.
Bonds Payable $108,400
Goodwill $60,900
Answer:
d. One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself, and that assumption is often not valid.
Explanation:
While calculating a project's IRR, that is internal rate of return we calculate the return at which the outflow = inflow. Further it is assumed that the funds will be reinvested at the same rate.
As with change in weights because of amount invested, change in capital structure, the effective rate also changes, and the expected rate of return being IRR is generally not the same.
Accordingly, this is a correct statement that most of the times it is not true that reinvestment will earn the same rate of return as of IRR.
Answer: 2.25 times
Explanation:
The accounts receivable turnover will be calculated by dividing the net credits by the average accounts receivable.
To solve the question, we need to calculate the average accounts receivable. This will be:
= ($357470 + $325300)/2
= $682770/2
= $341385
Account receivable turnover is calculated as:
= Net credit/Average accounts receivable
= $769,346/$341,385
= 2.25 times
The answer is 0.32, I hope the image accelerates your understanding
Full question attached
Answer:
A. 8.6%
B. 14.09%
Explanation:
A) given that portfolio weights =50% each
Expected return= w*r+w*r where w is portfolio weight and r is return on each asset:
=0.50*0.078+0.50*0.094= 0.086
=8.6%
B) The volatility (standard deviation)
=√w²*std²+w²*std²+2*w*w*std*std*corr
=√0.50²*0.157²+0.50²*0.203²+2*0.50*0.50*0.157*0.203*0.213
=0.1409
=14.09%