Answer:
The answer is: O'Brien's MVA is $12,000,000
Explanation:
We first take the total book value of equity $20,000,000
Then e calculate the market value of the company (stock price per share times shares outstanding) = $32 per share x 1,000,000 shares = $32,000,000
The market value added (MVA) is the difference between market value and equity value:
MVA = $32,000,000 - $20,000,000 = $12,000,000
In one view, the asset prices are objectively based on fluctuating principles, whilst in the certain, psychological factors and prejudices play an important role.
Explanation:
As the rate of interest increases, the price of the investments declines because the yield on risk-free investing can sometimes be greater to buyers. On the other hand, the price of assets is rising as interest rates are falling.
This is usually the interest rate owed by small investors on an approved FDIC portfolio, checking account, term deposit acct or mutual fund of the monetary sector. This is now the so-called US "risk-free" limit for bigger creditors, companies and individuals. Bills for the Treasury.
<u>Solution and Explanation:</u>
<u>Calculation of Elucid’s cost of recovery deduction for the year 2019 and 2020
</u>
Cost of recovery deduction for 2019 = Assets value * depreciation rate for the first year
( it has calculated by using MACR table)
= $ 25221.85
Therefore, the cost of recovery of deduction in 2019 is $25221.85
<u>Cost of recovery deduction for 2020 = Assets value * depreciation rate for the first year
</u>
( it has calculated by using MACR table)
= $42871.85
Therefore, the cost of recovery of deduction in 2020 is $42871.85
Answer:
Journal entry is given below
Explanation:
To record the payment of interest and the discount amortization at the end of period 1 we should debit the Interest expense and credit cash and discount
DATA
Interest expense in year 1 = $38,936
Interest to be paid = $36,450
Discount amortization = $2,486
Entry DEBIT CREDIT
Bond interest expense $38,936
Cash $36,450
Discount on bonds $2,486
A time horizon<span> is the length of </span>time<span> over which an investment is made or held before it is ended. </span>Time horizons<span> can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor or an individual who is investing in a retirement plan.</span>
