User Account

All Pages

How much equity income the investor report for the year

Assignment Help Financial Management
Reference no: EM132325665

Question

An investor uses cash to purchase 33% interest in an investee company, and the investor concludes that it can exert significant influence over the investee. The book value is equal to the fair value of the investee's assets and liabilities on the acquisition date and the investor purchases its interest for $200,000.

Subsequent to the acquisition, the investee reports net income of $355,813, and pays cash dividends of $10,000.

How much equity income the investor report for the year?

Reference no: EM132325665

Questions Cloud

Describe and give historical examples of cultural calculus : In your answer, describe and give historical examples of the cultural calculus and biological calculus. Do these modes of calculation continue today
Discuss the key aspects of the organization : Each will select an organization that has gone through a change, you will discuss the key aspects of the organization, the concepts of change, the leadership st
Record the issuance of the bonds and the payment : One year from the issue date (July 1, 2019), the corporation exercised its call privilege and retired the bonds for $465,000.
What kind of bonds is ms khalids business most likely going : Ms. Khalid has very little inventory and does not own much of her equipment or facilities thus she has little to no assets that she can pledge to a lender.
How much equity income the investor report for the year : Subsequent to the acquisition,the investee reports net income of $355,813, and pays cash dividends of $10,000. How much equity income the investor report for?
Write about abolitionism right before the Civil War : Read "An Appeal to the Coloured Citizens" and explain how his argument fits with your texts information about abolitionism right before the Civil War
Prepare the appropriate journal entries : Palo Alto City has operated a City Utility Enterprise Fund for a number of years. The fund accounts for the activities of the city-owned electric.
Analysis of individual comic strip or political cartoon : Analysis of an Individual Comic Strip or Political Cartoon. what are some of the physical elements present in the cartoon1 - characters, text, colors, etc.,
Create an instructional plan based on implementation : Create an instructional plan based on implementation of the evidence-based instructional strategy and data gathered to address the student's academic need.

Reviews

Write a Review

Financial Management Questions & Answers

  Bolding period return-definednas interest income plus

The returm an investor earns in a bond over a period of time is known as the bolding period return, definednas interest income plus or minus the change in the bonds price, all diveded by the beginning bond price a) what is the holding period return o..

  Represent the most common form of off-balance-sheet debt

Operating leases represent the most common form of off-balance-sheet debt.

  Issued bonds-hat is the price of the bonds

Renfro Rentals has issued bonds that have a 9% coupon rate, payable semiannually. The bonds mature in 12 years, have a face value of $1,000, and a yield to maturity of 11%. What is the price of the bonds?

  Respect to these interest and dividend payments

USAco derives over 90 percent of its gross income from its business operations in Canada. Are there any U.S. withholding requirements with respect to these interest and dividend payments? A citizen and resident of Country X hold a certificate of depo..

  Calculate NPV-IRR and MIRR

Company X wants to acquire another similar company. It estimates that net cash flows for the acquired company will be $8,500,000 per year for 10 years. The cost is $50,000,000. The company's cost of capital is 10 percent. Calculate NPV, IRR, and MIRR..

  Design compensation and reward plans

How can you design compensation and reward plans that meet the following goals for each function in the company (e.g., operations, sales, web design, as appropriate): You want to attract and retain high quality, experienced employees to the winery.

  Calculate the amount of interest paid over life of mortgage

Calculate your monthly payments on this mortgage. Calculate the amount of interest paid over the life of this mortgage.

  Shares of common stock outstanding

XYZ corp. currently has 50 million shares of common stock outstanding. Their current market price is $80 per share and have a beta of 1.15. XYZ has $1 billion of bonds outstanding, each with the market value of $1100. The expected return on the S&P 5..

  Constant growth valuation-what is required rate of return

What is the required rate of return? What stock price is expected 1 year from now?

  Would reinvest the funds by buying us treasury securities

Would the Fed be more likely to take this action if it saw future U.S. economic growth as being strong or as being weak? Briefly explain.

  One of the major functions of the house of quality

One of the major functions of the House of Quality is to:

  Other investments of equal risk-what is its present value

If other investments of equal risk earn 10% annually, what is its present value?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd