Business
Business, 23.03.2021 01:00, jace67857

A prospect is heavily invested in the common stock of an employer's company, ABC, relative to other investments. The stock has performed well over the last 15 years and the prospect is very happy with the investment. After reviewing financial and nonfinancial criteria, you have determined that A) selling a portion of ABC and using the proceeds to purchase mutual funds will reduce his nonsystematic risk. B) owning too much ABC stock has increased credit risk to an unacceptable level. C) he should begin to liquidate the ABC stock using the FIFO accounting method. D) because ABC has performed well over a 15-year period, he should keep the stock but sell it if inside information indicates a fall in value is imminent.

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 01:00, taee67
Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.
Answers: 2
image
Business, 22.06.2019 01:30, mobslayer88
Iam trying to get more members on my blog. how do i do this?
Answers: 3
image
Business, 22.06.2019 04:00, cameronbeaugh
Last week paul, ceo of quality furniture in south carolina, traveled to europe to visit customers. while overseas, paul checked his e-mail daily and showed his company's website to customers, explaining how the website will them place orders and receive merchandise more quickly. after visiting the last customer friday morning, paul was able to return to the corporate office in south carolina to meet with his board of directors that night. is the "shrinking" of time and space with air travel and electronic media.
Answers: 1
image
Business, 22.06.2019 07:00, ladybugys
Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805
Answers: 1
Do you know the correct answer?
A prospect is heavily invested in the common stock of an employer's company, ABC, relative to other...

Questions in other subjects:

Konu
Chemistry, 29.05.2020 11:57