<span>It should be laid out like this example:(November 10, 2015)</span>
Answer:
The correct answer is letter "C": When both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values.
Explanation:
Impairment Loss is the decrease in an asset's net carrying value that exceeds the future undisclosed cash flow it should generate. The net carrying value is an asset's acquisition cost minus depreciation. Impairment occurs when a company sells or abandons an asset that is no longer beneficial.
Thus, <em>a goodwill impairment loss is recognized when the goodwill's net carrying value is below its fair value and the expected cash flow it was to generate.</em>
They could end up financing them too much and need to borrow more money from China (we are very much in debt right now) nd then we would have more to pay
Answer:
9.75%
4.2%
Explanation:
Given:
Stock index portfolio = 70% = 70/100 = 0.70
Risk free asset = 30% = 30/100 = 0.30
Return on the risk-free asset = 4.5% = 4.5/100 = 0.045
Return on the stock index = 12% = 12/100 = 0.12
Standard deviation (Return on the stock index) = 6% = 6/100 = 0.06
Computation of expected return on the portfolio:
Expected return = [Risk free asset × Return on the risk-free asset ] + [Stock index portfolio × Return on the stock index ]
= [0.3 × 4.5] + [0.7 × 12]
= [1.35 + 8.4]
= 9.75%
Computation of expected standard deviation of the portfolio:
Expected standard deviation = [Stock index portfolio × Standard deviation (Return on the stock index)]
= 0.7× 6
= 4.2%
