Answer:
1. $20,000.
Explanation:
unrealized holding loss = Aggregate cost - Aggregate fair value
= 180,000 - 160,000
= ($20,000) Loss
Therefore, The amount that Valet should report in its 2018 income statement for unrealized holding loss is $20,000.
Answer:
Option (D) 41.86 % for debt, 58.14% for equity
Explanation:
Market value of debt = $24 million × 120%
= $24 million × 1.20
= $28.8 million
Market value of equity = 2 million shares × $20 per share
= $40 million
Therefore,
Total = $28.8 million + $40 million
= $68.8 million
Therefore
,
Weight of Debt = [ Market value of debt ÷ Total ] × 100%
= [ $28.8 million ÷ 68.8 million ] × 100%
= 41.86%
Weight of Equity = [ Market value of equity ÷ Total ] × 100%
= [ $40 million ÷ 68.8 million ] × 100%
= 58.14%
Hence,
Option (D) 41.86 % for debt, 58.14% for equity
Answer:
The seven members of the Board of Governors of the Federal Reserve System are appointed by the U.S president and confirmed by the Senate
Explanation:
The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. The Chairman and the Vice-Chairman of the Board are named by the President from among the members and are confirmed by the Senate. They serve a term of four years.
Answer:
Risk-free rate (Rf) = 3%
Market return (Rm) = 11%
Beta (β) = 2.8
Ke = Rf +β(Rm - Rf)
Ke = 3 + 2.8(11 - 3)
Ke = 3 + 2.8(8)
Ke = 3 + 22.4
Ke = 25.4%
Explanation:
Cost of retained earnings is a function of risk-free rate plus beta multiplied by risk-premium. Risk premium is the difference between market return and risk-free rate,