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3 years ago

Which of the following is not a correct statement about noncontrolling interest?

1 answer:

7 0

Noncontrolling interests are entitled to preference in dividends and payouts in liquidation is not a correct statement about noncontrolling interest.

Option B

<u>Explanation: </u>

Non-controlling interest (NCI) is the part of the equity in a corporation not directly related to a parental company that has a controlling interest (above 50% but below 100%) and strengthens the financial results of the corporation with its own.

Suppose, for example, that Alpha acquires 80 percent of Sierra's outstanding stock. As Alpha controls over 50% of the Sierra region, Alpha consolidates the financial performance of Sierra that has its own financial results.

Alpha's balance sheet reports as NCI 20 percent of the Sierra equity which Alpha does not own. In proportion to their amounts of holding, the Incorporated Net Income is assigned to parental and non-controlling interest parties (minority shareholders); 80% to Alpha and, in this situation, 20% to un-controlling interest.

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Which situation is most likely an indicator that an economy has reached a peak?

zhenek [66]

Answer:

The answer is A. After months of consistently raising, the unemployment rate stayed the same for two months in a row.

Explanation:

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3 years ago

A company's Income Tax Payable account decreased from $14 million to $12 million during the year. If its income tax expense was

Flura [38]

Answer:

A cash outflow of $82 million is correct answer

Explanation:

Options:

A cash outflow of $12 million.

A cash outflow of $78 million.

A cash outflow of $80 million.

A cash outflow of $82 million.

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3 years ago

Read 2 more answers

You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely

yKpoI14uk [10]

Answer:

$48.2

Explanation:

The increase in dividend is 3.9%

= 3.9/100

= 0.039

The recently paid dividend is $3.62

The required return is 11.7%

= 11.7/100

= 0.117

Therefore the price per share of the company stock can be calculated as follows

= 3.62(1+0.039)/0.117-0.039

= 3.62(1.039)/0.078

= 3.761/0.078

= 48.2

Hence the price per share is $48.2

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3 years ago

The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat

koban [17]

Answer:

Risk-free rate (Rf) = 8%

Return on market portfolio (Rm) = 15%

Beta (β) = 1.2

Ke = Rf + β(Rm - Rf)

Ke = 8 + 1.2(15 - 8)

Ke = 8 + 1.2(7)

Ke = 8 + 8.4

Ke = 16.40%

Earnings per share (EPS) = $10

Current dividend paid (Do) = 40% x $10 = $4

Retention rate (b) = &6/$10 x 100 = 60% = 0.6

ROE (r) = 20% = 0.2

Growth rate (g) = b x r

= 0.6 x 0.2

= 0.12 = 12%

Current market price (Po)

= Do<u>(1 + g) </u>

Ke - g

= $4<u>(1 + 0.12)</u>

0.1640 - 0.12

= $4<u>(1.12)</u>

0.044

= $101.82

Explanation:

First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).

Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.

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3 years ago

A manager is concerned that there isn’t enough time spent on production and too much time spent on setups. The manager decides t

Katarina [22]

The impact would be that the average size of the inventory will increase.

If the manager has decided to double the production batch size then the average size of the inventory will also increase.

<h3>What is an inventory? </h3>

In general terms an inventory refers to all the goods, items, products, which are a part of the business organization.
For different industries the inventories have different meanings.
Manufacturing industry: the inventory is not only the finished or the final product but also the raw materials are included.
Service industry: the inventory of the service industry includes the steps involved in the sales of the product.
Raw materials, finished goods, work that is in process etc.. all of this is inventory.
Inventory is an important asset for all businesses and it is important to understand the meaning of it.

To learn more about inventory visit: brainly.com/question/14179825?

#SPJ4

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1 year ago