Callahan, Smith, and Spencer studied firms affected by FIN 46 during the period 1998-2005. After controlling the other factors affecting cost of capital, they found that the cost of capital of firms affected by Fin 46 (and which thus had to either consolidate their VIEs or issue ELNs to avoid consoildation) increased on average afte 2003, relative to a control sample of firms that were unaffected by FIn 46. For those firms affected by fin 46 that avoided consoilation thorugh ELNs, the authors found that their increase in cost of capital was less than the increase for those affected that did consoldiate. Required:
a. Give an explanation for these results that is consistent with securities market efficiency.
b. Give an explanation that is consistent with behaviorally biased investors.
c. How did the FASB and IASB respond to the consolidation loophole of ELNs in FIN 46?

Eliza works for a consumer agency educating young people about advertisements. instead of teaching students to carefully read advertisement claims, she encourages them to develop a strong sense of self and to keep their life goals and dreams separate from commercial products. why might eliza's advice make sense?

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows. direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow. fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.

Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.