Answer:
d.income statement immediately after income from continuing operations.
Explanation:
We should look at what the accounting principles and normatives threatment suggest.
As the firm should firm indicate the resulf the going business the discontinued operation should be disclosure separately from it. Thus, once complete the disclosure of the continued operation the firm should post the loss on this discontinued operation
Answer: B.both stocks are equally good investments
Explanation:
The options are;
A.it is better to buy shares in Bad Firm
B.both stocks are equally good investments
C.it is better to buy shares in Good Firm
D.both stock prices react equally to the same information
From the question, we are informed that Good Firm is highly profitable and will grow rapidly in the future while Bad Firm faces the same risks but barely makes a profit and will not grow at all. It should be noted that In an efficient market, both stocks are equally good investments.
Answer: Net Asset Value = 1950
Explanation:
Assets = $225 million
Liabilities = $30 million
Shares outstanding = 10 million
We can compute the Net Asset Value, using the following formula:
<em>
</em>
<em>
</em>
<em>NAV per share = 19.5</em>
<em>Therefore, the NAV of 100 share is 1950</em>
