The Island Cruises stock is publically traded. During the year, Island Cruises reported net income of $80,000 and paid cash dividends of $20,000. How should Oakbrook Travel account for its investment in Island Cruises? Select one: A. Apply the equity method and report the investment at market value at year end. B. Account for the investment as a special purpose entity. C. Apply the equity method and perform a full consolidation. D. Apply mark-to-market accounting and consolidate the statements at year end.

You are an investment adviser. One of your clients approaches you for your advice on investing in equity sharesof Alpha Company. You have collected the following data:Earnings per share last year $5.00Payout ratio 0.30Return on equity 0.30Cost of equity capital 0.25The company plans to increase the payout ratio to 40% from year 6.Required:i) Estimate the price of an equity share of this company using an appropriate dividend discount modeland advise your client whether they should buy a share of the company.ii) Your client is keen to know whether there are any positive growth opportunities from theirinvestment. Explain to your client the meaning of this concept using appropriate calculations.

Blanco Co. received dividends from its common stock investments during the year ended December 31 as follows: • A cash dividend totaling $15,000 from its trading security investment in Fisher Corporation, when the market price of Fisher's shares was $20 per share • A cash dividend of $10,000 from Myler Corp. in which Blanco Co. owns a 32% interest How much dividend income should Blanco report in its income statement? Select one: O O O $25,000 $15,000 $10,000 $0

You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering the purchase of National Property Trust shares. You have been asked to prepare a financial analysis of the REIT.   National Property Trust Panel A. Operating Statement Summary Net revenue $ 112,000,000 Less:   Operating expenses 44,800,000 Depreciation and amortization 34,000,000 General and administrative expenses 7,200,000 Management expense 4,200,000 Income from operations 21,800,000 Less:   Interest expense* 6,400,000 Net income (loss) $ 15,400,000 *At 8% interest only.   Panel B. Balance Sheet Summary Assets   Cash $ 52,700,000 Rents receivable 3,700,000 Properties @ cost 820,000,000 Less: Accumulated depreciation…