Option (A) provides a clearer picture on how the stock options affect the company’s equity through the balance sheet. Expense: An expense represents the actual or expected cash outflow that results from an entity’s ongoing major or central operations. Option (A) values the compensation based on the value of the stock options. Therefore, this transaction
Given the following Euro to $ Exchange rate of 1.46, what is the information contained in this quote? If the Purchasing Power Parity Theory is correct, what is true about the relationship between the US dollar and the Euro at this exchange rate? a. 3. A US multinational company is required to report its financial results in US dollars.
Which of the following must be included in this inventory count? (TCO A) A problem with the specific identification method is tha (TCO A) Which of the following statements is true regarding inventory cost flow assumptions? (TCO A) In periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the (TCO B) Which of the following is a true statement about inventory systems? (TCO B) A merchandiser that sells directly to consumers is TCO D) A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him understand them.
Explain the difference in the required return estimates from the Value Line to the WSJ price data. The company’s return on common stock using the constant growth model is 7.72% Expected dividend yield = .60/27= 2.22% Cap. Gains Yield=5.5% The expected returns decreased from 8.36%to 7.72% which indicates the company is not as risky because the higher the risk the higher the return. B. What is the relationship between dividend yield and capital gains yield over time under constant growth assumptions?
Interest rate risk is basically the threat posed by unexpected changes in interest rates, in other words, it can be defined as the uncertainty surrounding expected returns on security, brought about by changes in interest rates. Given that a borrower uses 90-day bills under a two-year bill facility, the bills will be rolled over seven times so that the loan is repaid at the end of two years. This arrangement is a floating-rate arrangement that exposes the borrower to the risk of an unexpected rise in interest rates that will increase its cost of funds while not increasing its interest earned on the loan. The borrower faces interest rate risk throughout the period of the facility because the amount raised is determined by the spot rate each time the bills are issued. Should rates rise unexpectedly, the borrower would have to pay the higher-than-expected interest rate.
Consumer price and producer price in 2009 to 2012 continue to drop and raise the price for consumers was not steady. The direction and magnitude of price change in the Producer Price Index for finished goods anticipates a similar change in the Consumer Price Index for all items. When this assumed relationship is contradicted by the actual movements of the two series. The answer is that conceptual and definitional differences between the PPI and CPI—differences which are consistent with the uses of the two measures—contribute to the differences in their price movements. A primary use of the PPI is to deflate revenue streams in order to measure real growth in output.
The components of the statement of cash flow shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down into operating, investing, and financing activities. The statement shows the current operating results for a period of time. These details are reflected in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. o Which financial statement is the most important?
Supply and Demand Simulation Amanda Huenefeld ECO/365 Sadu Shetty January, 14, 2013 Introduction Supply and demand are the two influences that govern pricing in the larger picture of a viable economic market. The two factors are like two forces. Equally the conclusive levels of supply and demand, and the comparative levels of the two in contrast to one another, are significant. The standard of supply and demand is that if one or both varies, there will be a transient difference in the amount of product manufacturers are equipped to sell and the quantity that consumers are willing to buy. This difference will cause the market price to increase or decrease when necessary until the quantities are the same.
It includes options and warrants as well as debt and stock. "(2) Participation rights – contractual rights of security holders to receive dividends or returns from the security issuer’s profits, cash flows, or returns on investments. " "(3) Preferred Stock – a security that has preferential rights compare to capital stock. " (C) What information about securities must companies disclose? Discuss how Hincapie should report the proposed preferred stock issue.
2) The sales budget calculates how much the company will spend to produce the required number of units. The president should do further consideration in terms of capital and labor costs. Does company have an adequate capital to produce the required number of units? And if the answer is no, they should look for other alternatives such as borrowing and others. 3) The sales budget is to estimate the profitability.