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gogolik [260]
3 years ago
8

Consolidation accounting:______

Business
1 answer:
Finger [1]3 years ago
4 0

Answer:

c. combines the accounts of the parent company and those of the subsidiary companies.

Explanation:

Consolidation accounting is the accounting in which the parent company accounts are combined with the subsidiary companies accounts. It can be applied at the time when the parent company takes more than 50% of the shares of the subsidiary company

Therefore as per the given situation, the option c is correct

And, the same is to be considered

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Lamey Co. has an unlevered cost of capital of 10.9 percent, a tax rate of 35 percent, and expected earnings before interest and
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cost of equity is 11.60 %

Explanation:

Given data

cost of capital = 10.9 percent

tax rate = 35 percent

earnings = $21,800

bonds outstanding = $25,000

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to find out

cost of equity

solution

we will find first value of unlevered

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