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Nikolay [14]
3 years ago
9

A company had common stock with a total par value of $18,000,000 and fair value of $62,000,000; and 7% preferred stock with a to

tal par value of $6,000,000 and a fair value of $8,000,000. The book value of the company was $85,000,000. Assuming ninety percent (90%) of the company’s total equity is acquired, what amount must be attributed to the noncontrolling interest?
Business
1 answer:
arlik [135]3 years ago
7 0

Answer:

$7,000,000

Explanation:

Accounting for Non-Controlling Interest requires measurement of stock at Fair Value.

Total fair value of firm = Fair value of common stock + Fair value of preferred stock

= $62,000,000 + $8,000,000

= $70,000,000

90% of equity represent the extent of controlling interest in the firm. Thus, remaining 10% will be the value of non-controlling interest.

As already discussed, non controlling interest requires measurement at fair value:

Non-Controlling Interest = Total Fair Value x Percentage of Non-Controlling Interest

= $70,000,000 x 10%

= $7,000,000 (Answer)

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Scranton Shipyards has $20 million in total investor-supplied operating capital, and its WACC is 10%. Scranton has the following
Setler [38]

Answer: $400,000

Explanation: Given the following :

Operating Income (EBIT) = $4,000,000

Weighted average cost of Capital (WACC) = 10% = 0.1

Operating capital = $20,000,000

Taxes = 40% = 0.4

Economic Value Added (EVA) is given by;

EBIT x (1-Tax) - (WACC x Operating capital)

$4,000,000 × (1-0.4) - (0.1 × 20,000,000)

$4,000,000 × (0.6) - (2,000,000)

$2400,000 - $2,000,000

=$400,000

6 0
3 years ago
One of Christina’s colleagues works with her on developing a more standards-driven environment in her classroom. The two teacher
IceJOKER [234]

The first thing Cristina should do to create a more standards-oriented environment in her classroom is to create positive relationships with her students.

<h3 /><h3>How to create a positive educational environment?</h3>

It is necessary for the teacher to be organized according to the methodologies required by the institutional standard, as standardization generates the systematization of processes so that student learning and development occurs in a similar way, without bias, for example.

Therefore, the standardization of teaching helps in conformity, structuring and systematization, essential for the formation of relationships and educational culture favorable to social, cognitive and academic development.

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7 0
1 year ago
Every 6 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes
Svetradugi [14.3K]

Answer:

The answer is "87%".

Explanation:

Please find the attached file.

6 0
3 years ago
Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he a
d1i1m1o1n [39]

Answer:

Authority - Responsibility Balance & Incentive Development.

Explanation:

Authority refers to the power to command, give orders to somebody. And enjoying the position of having right to get it obeyed.

Responsibility refers to being in a position of accountability, answerability for an allocated task or job & its performance.

For Eg : A manager  given responsibility to complete a task of production targets achievement, is also given authority to command the entire staff at the production site.

Joe had problem while working for someone else that :- he had responsibility to complete employers allocated task, but may be not given enough authority to do so, thats why he felt he is being 'commanded by, working for' someone else. Also, he doesn't owe the rewards of his acts, so lacks incentive.

Being an entrepreneur will entitle him with managerial responsibilities, but at the same time will also give him higher authority to take his own independent decisions. And, he is himself responsible for his acts, will bear losses or enjoy profits for himself. So, it also incentivises him to work for himself.

8 0
2 years ago
Write the AddressList method newBusiness. This method searches addresses for an existing business with an identical address (i.e
max2010maxim [7]

Answer:

See explaination

Explanation:

// Address.java

public class Address {

/**

* The name of the business

*/

private String name;

/**

* The name of the street the business is on

*/

private String street;

/**

* The street number of the business

*/

private int number;

/**

* Constructs an Address that represents a business with name nm,

* at number no on the street st

*/

public Address(String nm, String st, int no)

{

name = nm;

street = st;

number = no;

}

/**

* Returns the name of the business

*/

public String getName()

{

return name;

}

/**

* Returns the name of the street on which the business is located

*/

public String getStreet()

{

return street;

}

/**

* Returns the street number of the business

*/

public int getNumber()

{

return number;

}

}

//end of Address.java

//AddressBook.java

import java.util.ArrayList;

import java.util.List;

public class AddressBook {

/**

* The list of business addresses. No two businesses in the list

* can have the same address (both the same street and street number)

*/

private List<Address> addresses;

/**

* Constructs an empty AddressBook

*/

public AddressBook()

{

addresses = new ArrayList<Address>();

}

/**

* atparam st the name of a street

* atreturn a list with the names of each business with an address on that street

*/

public List<String> onStreet(String st)

{

// create an empty output list of names of business

List<String> businessName = new ArrayList<String>();

// loop over the list of addresses

for(int i=0;i<addresses.size();i++)

{

// if ith street of address = nm, add the name of the business to the output list

if(addresses.get(i).getStreet().equalsIgnoreCase(st))

businessName.add(addresses.get(i).getName());

}

return businessName; // return the list

}

/**

* Searches for an existing business with an identical address (street and number

* both match). Updates the record to an address with name nm, street st and number no.

* If no entry already exists adds a new address to the end of the list with these parameters.

*

* atparam nm the name of the business

* atparam st the street the business is on

* atparam no the street number of the business

* atreturn the index of where the business address is on the list

*/

public int newBusiness(String nm, String st, int no)

{

// loop over the list of addresses

for(int i=0;i<addresses.size();i++)

{

// if ith index addresses match the street and number of the input st and no

if((addresses.get(i).getStreet().equalsIgnoreCase(st)) && (addresses.get(i).getNumber() == no))

{

addresses.remove(i); // remove the ith address from list

addresses.add(i, new Address(nm,st,no)); // add a new address with the input name, street and number at ith index

return i; // return the index i

}

}

// if no address match, add the business at the end of the list

addresses.add(new Address(nm,st,no));

return addresses.size()-1; // return the last index

}

}

//end of AddressBook.java

5 0
3 years ago
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