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.
Show clearly the steps to arrive at the following estimates in Exhibit 10: Enterprise Value as Multiple of: Revenue EBIT EBITDA Net Income 6,252 8,775 9,023 7,596 6,584 9,289 9,076 7,553 MV Equity as Multiple of: EPS Book Value 4,277 5,904 4,308 5,678 Median Mean If you need to use a discount rate to discount cash flows then an appropriate discount rate estimate for PacifiCorp is approximately 9%. 3. Bid assessment: How do you assess the bid for PacifiCorp by Berkshire Hathaway? How much does Buffett pay for PacifiCorp for its equity and as a whole? How do these values compare with the firm’s intrinsic values estimated above?
Discuss how Hincapie should report the proposed preferred stock issue. * General Disclosure- either on the face of the financial statement by means of parenthetical disclosure, or in the Notes of the financial statements "o 505-10-50-2: If both financial position and results of operations are presented, disclosure of changes in the separate accounts comprising shareholders’ equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative. Disclosure of such changes may take the form of separate statements or may be made in the basic financial statements or notes thereto " "o 505-10-50-3: An entity shall explain, in summary form within its financial statements, the pertinent rights and privileges of the various securities outstanding. Examples of information that shall be disclosed
http://www.irs.gov/businesses/small/article/0,,id=146330,00.html.” Dividends, interest, annuities, and royalties not accumulated through the ordinary course of trade or business is Portfolio income, not passive income. The sales of stock and bonds are also portfolio income. 7-13) Martially participation is
There is a strong relationship between average dollar amount and recency. The more recent (with 1 being the most recent) a customer purchases, the higher average dollar amount ordered is for that customer. 5. What does a bar chart of Average $ ordered from last catalog by frequency deciles show? This shows that average dollar amount ordered from last catalog is negatively related to frequency.
Checkpoint: Debits and Credits Terra Ballenger XACC 280: Financial Accounting Concepts and Principles August 16, 2012 Paul Gomez Associate Level Material Appendix B Debits and Credits Consider the information presented in PhxKlips™ Debits and Credits. Pay particular attention to the meaning of debits and credits and their effects on accounts. Then follow the instructions below. 1. Write a response to the following questions: In what two ways is the word debit defined in Debits and Credits?
The market risk premium was not given in the case study and has been taken as the spread between stock and bond annual returns over the period 1926 – 1997 to be 7.2% 5. All figures relating to income and expense are obtained by taking the 3rd quarter figures and annualising them by multiplying the figures by 365/273 6. A historic growth rate of 57% was obtained
In which current and noncurrent asset categories are investments reported by Merck? What criteria are used to determine the classifications? The 2008 balance sheet reports the following two current and one noncurrent asset categories ($ in millions): 2009 2008 CURRENT ASSETS: Cash and cash equivalents $ 9,311.4 $ 4,368.3 Short-term investments $293.1 $1,118.1 NONCURRENT ASSETS: Investments $432.3 $6,491.3 In the summary of significant accounting policies (Note 2), Merck describes its policy regarding investments classified as "cash equivalents." It is consistent with the way most companies classify "cash equivalents." CASH AND CASH EQUIVALENTS -- Cash equivalents are comprised of certain highly liquid investments with original maturities of less than three months.
Select the correct answer. $199,990 | | | $755,322 | | | $955,312 | | | $139,358 | | 8. Variable costs as a percentage of sales for Leamon Inc. are 61%, current sales are $517,801. and fixed costs are $197,934. How much will operating income change if sales increase by $41,139?
C) A pension fund manager buys commercial paper in the secondary market. D) An insurance company buys shares of common stock in the over-the-counter markets. E) None of the above. Answer: E Topic: Chapter 2.1 Function of Financial Markets Question Status: Previous Edition 4) Which of the following can be described as involving direct finance? A) A corporation's stock is traded in an over-the-counter market.