Answer:
2011 Value of investment in Mayfair
= Beginning investment value + Portion of Mayfair net income - Portion of Mayfair dividends
= 5,700,000 + (40% * 2,250,000) - (300,000 shares * 0.15)
= $6,555,000
2012 Value of investment
= Beginning investment value + Portion of Mayfair net income - Portion of Mayfair dividends
= 6,555,000 + (40% * -180,000) - (300,000 * 0.15)
= $6,438,000
Answer:
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Explanation:
<span>If several years ago, the Jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually, then the after-tax cost of debt of the firm will be 4.65%.</span>
<span>The percentage of new sales is $3,368.00</span>
Answer:
b. the equity method.
Explanation:
The equity method is used when the investor company will own approximately 20% to 50% of the common stock of the investee company. This method is used because the investor company will have significant influence over the actions taken by the investee company. The investee company will generally be considered an affiliate company, but not a subsidiary.
