Which of the following represent problems encountered when comparing the financial statements of two separate entities? I. Either one, or both, of the firms may be conglomerates and thus have unrelated fines of business. II. The operations of the two firms may vary geographically. I. The firms may use differing accounting methods. IV. The two firms may be seasonal in nature and have different fiscal year ends. Select one: A. Il and II only. O B. I, II, and III only. O C.I, II, and Iv only. O D. I and Il only. O E.I, II, II, and IV.

Which of the following represent problems encountered when comparing the financial statements of two separate entities? I. Either one, or both, of the firms may be conglomerates and thus have unrelated fines of business. II. The operations of the two firms may vary geographically. I. The firms may use differing accounting methods. IV. The two firms may be seasonal in nature and have different fiscal year ends. Select one: A. Il and II only. O B. I, II, and III only. O C.I, II, and Iv only. O D. I and Il only. O E.I, II, II, and IV.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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23 S1: A branch is able to report an investment in another branch of the home office, as long as such investment account is to be eliminated in full when preparing combined financial statements.S2: Contingent considerations in a business combination are only recognized if the outflow of economic resources is probable and the estimated outflow can be measured reliably. Group of answer choices S:1 False; S2: True S1: False; S2: False S1: True; S2: False S1: True; S2: True
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Consider that the probability of a reference entity defaulting during a year conditional on no earlier defaults to be 2%; assume that defaults always happen halfway through a year; payments made on a CDS are made once a year, at the end of the year; assume the risk-free rate is 5% with continuous compounding and the recovery rate is 40%. We will value a new credit default swap. We are buying protection on an entity. CDS is 3- years. What is the required spread for a new issue? A. 103.63bps B. 98.32bps C. 132.53bps D. 124.49bps
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