Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above. 2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.

From the balance sheet of M/s Sharma Limited, for the year ending 31 March 2020, compute the following ratios:                                                             M/s Sharma Limited                                                 Balance sheet as on 31st March 2020 Liability Amount (Rs.) Assets Amount (Rs.) Equity Share Capital 300,000 Land 50,000 Preference Share Capital 400,000 Building 300,000 General Reserve 50,000 Plant & Machinery 300,000 Profit & Loss A/c 50,000 Furniture 40,000 12% Debentures 200,000 Debtors 200,000 Trade Creditors 60,000 Stock 150,000 Outstanding expenses 15,000 Cash 40,000 Provision for tax 20,000 Prepaid Expenses 10,000 Proposed dividends 30,000 Preliminary Expense* 35,000     *(to the extent not written off)     1,125,000   1,125,000           Current ratio Debt–equity ratio Capital gearing ratio Liquidity ratio

Consider the following price and dividend data for Quicksilver Inc.: Dividend ($) Price ($) $14.4 $13.51 $9.14 $10.74 $8.02 $7.72 Date December 31, 2020 January 26, 2021 April 28, 2021 July 29, 2021 October 28, 2021 December 30, 2021 Assume that you purchased Quicksilver's stock at the closing price on December 31, 2020 and sold it after the dividend had been paid at the closing price on January 26, 2021. Your capital gains rate (yield) for this period is closest to A. 0.88% OB. -5.42% $0.11 $0.11 $0.11 $0.11 OC.-6.18% OD. 0.8% ...

Assume Skyler Industries has debt of $4,074,000 with a cost of capital of 7.3% and equity of $5,626,000 with a cost of capital of 10.0%. What is Skyler’s weighted average cost of capital? Round your intermediate calculations and final answer to 3 decimal places. fill in the blank %

The retained earnings of Volga plc at 1 March 2020 were £450,550. The retained earnings at 28 Febuary 2021 were £875,000. The pofit for the year is £581,450. What was the total dividend paid by Volga plc during the year?

Crane Inc. earns $400000 and pays cash dividends of $100000 during 2020. Blossom Corporation owns 60000 of the 200000 outstanding shares of Crane Inc.How much revenue from investment should Blossom report in 2020?     $30000   $150000   $90000   $120000

The summarised reformulated items (£) for BOLL Ltd in 2019 are given below:Net Operating Assets          17961                                     Operating Income                8654Net Financial Assets            46200                                    Net Financial Income           2167Common Share Equity      64161                                    Comprehensive Income    10821(i) Calculate the Return on Common Equity (ROCE) using the first level decomposition approach, and discuss your result.(ii) In 2020, the company decided to distribute cash dividends of £40000 (such that its Net Financial Assets fell to £6200). Calculate ROCE for 2020 using the same approach, and discuss your new result.

Estimating Share Value Using the ROPI ModelFollowing are forecasts of Illinois Tool Works Inc. sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018.   Reported Horizon Period   $ millions 2018 2019 2020 2021 2022 Terminal Period Sales $14,768 $15,654 $16,593 $17,589 $18,644 $19,017 NOPAT 2,711 2,880 3,053 3,236 3,430 3,499 NOA 9,462 10,028 10,630 11,268 11,944 12,183 Answer the following requirements assuming a discount rate (WACC) of 7.35%, a terminal period growth rate of 2%, common shares outstanding of 328.1 million, and net nonoperating obligations (NNO) of $6,204 million.(a) Estimate the value of a share of ITW’s common stock using the residual operating income model (ROPI) model as of December 31, 2018. Instructions:   Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share. Round discount factors to 5 decimal places. Round stock…

Keokuk Corp. had the following operating results for 2021 & 2020. Keokuk paid dividends of $100,000 per year for both years and made capital expenditures of $45,000 in both years. The company's stock price in 2021 was $12.00 and $10.00 in 2020. In 2021, the industry average earnings multiple was 10, the free cash flow multiple was 20 and sales multiple was 2.00. Thecompany is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2021. A. Calculate the 2021 market value of the company.  B. Compare Keokuk’s Equity Book Value to the Market Value. Discuss conceptually (not differences in the numerical calculations) the difference between these two amounts.

Pacquired a 70% of S on January 1, 2020, for S380,000. During 2020 S had a net income of $30,000 and paid a cash dividend of $10,000. Applying the cost method would give a balance in the Investment account at the end of 2020 of: Select one: $394,000 $400,000 O $380,000 $373,000