Answer:
Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.
Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:
+ Jones and Sandridge sign an agreement that Jones surrenders significant rights as a shareholder;
+ There is/are investor(s)/group(s) of investors who has more voting right than Jones and whose visionary/mission for Sandridge is opposite to Jones's.
+ Sandridge tries to reject Jones' influences on its management by seeking lawsuit or by successfully prevent representatives from Jones on its Board of Directors.
Explanation:
Answer:
True
Explanation:Information policy can be seen a singular set of policies made public by an organization to make sure that all her IT users in the domain or network of the organization comply with guidelines and regulation related to the protection of the information stored online/digitally at any point within the organization's boundaries of authority or in the network.
Answer:
In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 115, total revenue = $11,385
- price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50
On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
- price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
Answer:
b. Hilton should purchase the resort, but Marriott should not.
Explanation:
given data
Resort sale = $400 million
free cash flow = $45 million
time = 20 year
return = 8%
risk-free rate = 2%
Hilton beta =1.1
Marriott beta = 1.3
solution
we get here first NPV of the resort when the cost of capital is
Re = risk-free rate + beta( Rm - Rf) ........................1
Re = 2 + 1.1 ( 8 - 2 )
Re = 8.6%
and
The NPV will be as
cash flow to free cash flow is = 45 million
so NPV is $22.767
and
as that at cost of capital of 9.8%,
The NPV will be
NPV = $11.6011
so we can say that Hilton should pursue the project due to the positive NPV
but due to the negative NPV here Marriott should not pursue the project.
Answer:
Ricci vs. DeStefano
Explanation:
This case is a US labor law case that occurred in 2009, where twenty (20) firefighters at the New Haven Fire Department claimed to be discriminated against because they were refused promotion despite the fact that they passed the test.
More noticeably, no blacks and a very small number of Hispanics qualified for the promotion.
The result of the lawsuit was that $2 million was paid to the firefighter plaintiffs and New Haven reestablished the results and promoted 14 out of the 20 plaintiffs. For fees and costs, their attorney Karen Lee Torre was paid $3 million.
