5. Explain what the name “the political cost hypothesis” relates to in the earnings management literature.?...

5. Explain what the name “the political cost hypothesis” relates to in the earnings management literature.?

6. Given the following information:

Net Income $1,200,000

Preferred Stock, $100 par, 6%, 50,000 shares outstanding

Common Stock Outstanding, 100,000 shares (all year)

Total Common Dividends $200,000

Total Assets $10,000,000

Total Liabilities $3,000,000

Market Price Per Share $120

Calculate: (a) EPS (b) Dividend Yield (c) Market-to- Book Ratio (d) P/E ratio

7. What are the components of Comprehensive Income? What is the current treatment of Comprehensive Income and why?

8. What constitutes Extraordinary Items? What was the treatment of 9/11 losses regarding extraordinary items? Do you agree or disagree with this? What is the current treatment of extraordinary items?

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5 & 6. Answers:

ekkarill92 answered 1 year ago

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5. Explain what the name “the political cost hypothesis” relates to in the earnings management literature.?...

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