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Mashutka [201]
3 years ago
14

A company acquires a 25% investment in another corporation. The reporting of this investment depends primarily onThe percentage

of ownershipThe length of time that the investor intends to own the investmentTechnology dependencyMaterial intercompany transactionsThe degree of influence that the investor has over the investee
Business
1 answer:
balu736 [363]3 years ago
3 0

Answer: The degree of influence that the investor has over the investee.

To report this investment within the company's financial statements, according to IFRS, they depend into two options:

  1. Stock control: An entity controls a business when it is exposed or has rights over earnings and has the ability to affect these results through its power in the business.
  2. Minority percentage: The acquirer recognizes in their books an uncontrolled participation and in this case, no decisive decisions can be made.

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Turnips and Parsley common stock sells for $39.86 a share at a market rate of return of 9.5 percent. The company just paid their
valkas [14]

Answer:

The rate of growth of their dividend is 6.30%.

Explanation:

This problem requires us to calculate the growth rate at which the dividend will grow. The market value of share and market rate of return is also given in the problem. So we can easily calculate it using market valuation formula.

MV = D(1+G%)/ke

39.86 = 1.2 (1+G%)/(9.5%-G%)

G =  6.30%                    

4 0
3 years ago
Consider the market for bagels, which is currently at equilibrium, and where Pbagel and Qbagel denote the price and quantity of
UNO [17]

Answer:

please refer to attachment for more explanation

Explanation:

a. a. Since both goods are complementary goods an increase in the price of cream cheese would cause equilibrium price and quantity of bagel to decrease.

b. If the price of the substitute good croissant decreases then the demand for bagel will fall since croissant is obviously cheaper therefore demand curve will shift downward and price and quantity will fall.

c. Lower income of the consumer would make the demand for the inferior good bagel to rise. Demand curve will shift upwards and price and quantity will rise.

7 0
3 years ago
An investor originally paid $22,000 for a vacant lot twelve years ago. If the investor is able to sell the lot today for $62,000
MArishka [77]

Answer:

b.9%

Explanation:

Formula for annual rate of return formula is as follows;

Annual rate of return = [ (New value/ Initial value)^(1/t) ] -1

t = the total holding period of investment = 12 years

Old value = 22,000

New value = 62,000

Next, plug in the numbers to the formula;

Annual rate of return; r = [ (62,000/22,000) ^(1/12) ] -1

r = [2.8182 ^(1/12)] - 1

r = 1.0902 -1

r = 0.0902 or 9%

4 0
3 years ago
Which of the following statements is the most accurate? Sole proprietorships are well suited for people who want to own a busine
emmasim [6.3K]

Answer:

D. Sole proprietorships are taxed at the owner's personal tax rate

Explanation:

Sole Proprietorship can be defined as a simplest form of owning and starting any business. As the term suggests, this business is onwed by an individual only or shared by married couples.

Sole properietorship is easy to set up because the owner need not to register itself to state government, therefore, because of absence of governmental involvement, it is easy to set up or deconstruct sole proprietorship.

<u>From the given options, the statement which is most accurate about a sole proprietorship is option D. The owner of sole proprietorship pays personal taxes on the profits earned by his/her business.</u>

Therefore, option D is correct.

3 0
3 years ago
Joe is the manager of the marketing department of an organization. He is restructuring his department and is creating teams to i
Jobisdone [24]

Answer:

seven

Explanation:

The size of work group is very important since smaller groups tend to be more efficient and finish tasks faster, but they are also less diverse. Ideally if a manager is looking for an efficient group, it should have between 3-5 members. Now if Joe is worried about the lack of diversity, he should consider adding a couple more people, but not that many more. Individual contribution and productivity decreases as the group increases in size.

If you want to enhance creativity and problem solving abilities, you should form diverse groups that include employees with different functional expertise and education.

Out of the possibilities, I would personally choose seven people to form a group in order to keep productivity high and also diversity and creativity.

5 0
3 years ago
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