Answer:
correct answer is option B
Explanation:
GIVEN DATA:
Net income is $205,000
sales is $1,293,000
investment in assets is $1,021,000
rate of return on investment for blase corporation = (net income)/(investment in assets)
rate of return = (2,05,000/ 10,21,000)*100
rate of return = 20%
therefore correct answer is option B
Answer:
(a) Bond cost 2000000
Bond discount 10%
Bond years 10
Bond yield 4%
Interest (Jan-June) 100000
Less: Premium Amortisation (4000) (2000000*0.04)/10 *6/12
Interest expense 96000
(b) Bond cost 562500
Bond discount 9%
Bond years 10
Bond yield 10%
Interest (June 30-Oct 30) - ((1.10)^4/12) - 1=3.228%
Interest expense= 562500*3.228% =18157.5
Answer:
1. Indication of financial statement to refer to when answering questions in the following table:
Question Financial Statement
How profitable has the firm been? Income Statement
How much of the firm's earnings are Statement of Retained Earnings
left as balance after the firm pays out
dividends to its shareholders?
2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
Explanation:
Company A's Income Statement shows its profit performance at different levels. At one level is the gross profit, which shows the difference between the net sales or service revenue and the cost of sales/service. At another level is the operating income, which is the income before interest and taxes. The next important level is the net income, which is the profit after taxes. This shows the earnings available for distribution to stockholders. The Statement of Cash Flows classifies the cash flows generated into operating, investing, and financing activities, and shows the non-cash flow adjustments.
Answer:
b. C$1.344.
Explanation:
Calculation to determine Which one of the following one-year forward rates best establishes the approximate interest rate parity condition
One-year forward rates =C$1.40 *[1 + (.04 - .08)]^1
One-year forward rates= C$1.344
Therefore the following one-year forward rates that best establishes the approximate interest rate parity condition is C$1.344