Which of he following best describes our use of HPR in our stock valuation?

A. HPR is the fair return on the stock

B. HPR is our best guess of the market's required return on the stock given its current price.

C. HPR is the guaranteed return on the stock.

D. HPR is the historical return on the stock

A stock's one year target price estimate comes from:

Part B Short answer questions

Assume you are the financial controller of a new established company. The CEO has asked your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the acquisition.

Required:

State your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the initial acquisition. Explain the reason (s) of your choice (s). You should provide comments regarding the choice of accounting method.      

Should the government raise the minimum wage? Explain your answer. Your targeted audience are the Shareholders of your company ABC Technologies. The CEO stated he wants to increase minimum wage from $10.00 to $17.00, but the Shareholders are concerned that is not a smart move financially. Be sure to cite pros/cons; laws involved, living wages, etc. This is a current ongoing debate in America as some companies are raising the wage while others not so much. What impact will this have on the consumer?

I will appreciate the help!!

A European company is importing (purchasing) $600,000 of goods in one year. The current spot price is $1.23/€. Risk free rates in the US and Eurozone are 4% and 3%, respectively. The forward rate is $1.20/€. Your CEO wants to implement a money market hedge. This involves borrowing in one currency to purchase the other currency (which you will then invest for one year). What is the amount you are borrowing? Once the money market hedge is finalized a year later, was this hedge more favorable than a forward hedge?

As the Data Manager (DM) on the “TES-100” project, the CEO has decided to proceed with the study and wants you to consider using the new savvy company system of remote data entry/electronic data capture. Review the current literature (i.e. internet) regarding this topic and decide if this study would be RDE/EDC appropriate, then write a 2-3 page paper or 20-25 slides on why you have made the decision you have made including pros and cons.

uring the past year, Jim Hunt, CEO of KMP Corporation, read about several different frauds occurring in his industry. As a result of these recent frauds, Jim would like to know if fraud is present in his company. As Jim's new assistant, he has asked you to help him determine whether or not fraud is occurring. In preparation for the investigation, Jim has asked you to create a list of five types of fraud symptoms and briefly define and discuss each type.

Consolidated amounts when affiliate’s debt is acquired from non-affiliate

Assume that a Parent company owns 80 percent of its Subsidiary. On January 1, 2019, the Parent company had a $300,000 (face) 8 percent bond payable outstanding with a carrying value of $286,800. Several years ago, the bond was originally issued to an unaffiliated company for 92 percent of par value. On January 1, 2019, the Subsidiary acquired the bond for $274,500.

During 2019, the Parent company reported $1,140,000 of (pre-consolidation) income from its own operations (i.e., prior to any equity method adjustments by the Parent company) and after recording interest expense. The Subsidiary reported $330,000 of (pre-consolidation) income from its own operations after recording interest income. Related to the bond during 2019, the parent reported interest expense of $25,800 while the subsidiary reported interest income of $27,000.

Determine the following amounts that will appear in the 2019 consolidated income statement:

Note: Use a negative sign with your answer to indicate a loss on constructive retirement of bond payable, if applicable.

Upstream Eliminating Entries and Consolidated Net Income, Comprehensive Problem On January 2, 2014, Patten Company purchased a 90% interest in Sterling Company for $1,400,000. At that timeSterling Company had capital stock outstanding of $800,000 and retained earnings of $425,000. The differencebetween book value of equity acquired and the value implied by the purchase price was allocated to the follow-ing assets:

Inventory$41,667 Plant and Equipment (net) 200,000 Goodwill 88,889

The inventory was sold in 2014. The plant and equipment had a remaining useful life of 10 years onJanuary 2, 2014

During 2014 Sterling sold merchandise with a cost of $950,000 to Patten at a 20% markup above cost. AtDecember 31, 2014, Patten still had merchandise in its inventory that it purchased from Sterling for $576,000.In 2014, Sterling Company reported net income of $410,000 and declared no dividends

Required: A.Prepare in general journal form all entries necessary on the consolidated financial statements workpaper toeliminate the effects of the intercompany sales, to eliminate the investment account, and allocate the differ-ence between book value of equity acquired and the value implied by the purchase price.

B.Assume that Patten Company reports net income of $2,000,000 from its independent operations. Calculatecontrolling interest in consolidated net income.

C.Calculate noncontrolling interest in consolidated income.

Please show all your work.

Conflict among managers emerged soon after a French company acquired a Swedish firm. The Swedes perceived the French management as hierarchical and arrogant, whereas the French thought the Swedes were naive, cautious, and lacking an achievement orientation. Identify the source(s) of conflict that best explains this conflict, and describe ways to reduce dysfunctional conflict in this situation