How are the dividends declared and paid by a subsidiary during the year eliminated in the consolidated workpapers under each method of accounting for investments?

The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)

A company acquired a truck for $79,000 at the beginning of the fiscal year. It has a useful life of 5 years and a residual value of $9,000. The company uses the straight-line method of depreciation. After owning the truck for 2 years, the company sold it for $34,000. (a) Determine depreciation expense for each of the first 2 years, and (b) determine the gain or loss resulting from the sale.

You will be paying $10,200 a year in tuition expenses at the end of the next two years. Bonds currently yield 9%.

a. What is the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places.)

b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value" to 2 decimal places.)

c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 10%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. What if rates fall to 8%? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

3. The IRR is the rate which makes the principal at the beginning of the year following the last cash flow is paid out equal to 0. This is shown in the table below. Use the Goal Seek function of Excel to find this rate.

Check the value that you get and compare it to the Excel IRR function.

Help me with this please. In Excel using goal seek.

Boisvert ltée had the following inventories at the beginning and at the end of the year:

1 JANUARY 31 DECEMBER
¬

* The stock of finished products on January 1 was 7,500 units

During the year, 250,000 units were sold and 247,000 units were manufactured. Purchases of raw materials cost $ 375,000, of which 80% were raw materials (20% supplies). The cost of the labor was $ 400,000, 65% direct labor and 35% indirect labor. In addition to supplies (also called indirect materials) and indirect labor, the following manufacturing overhead costs were incurred:

Driving force $ 160,000
Depreciation 45,000
Property taxes 85,000
Repairs and maintenance 20,000

The selling costs were $ 125,000 and the administration costs were $ 80,000.

Work required:

Calculate:

1. the cost of the products produced;
2. product costs (also called product costs);
3. period costs (also called period costs);
4. the income statement.

IN C++

Write a program to gauge the rate of inflation for the past year. The program asks for the price of an item (such as a hot dog or a one carat diamond) both one year ago and today. It estimates the inflation rate as the difference in price divided by the year ago price. Your program should allow the user to repeat this calculation as often as the user wishes. Define a function to compute the rate of inflation. The inflation rate should be a value of type double giving the rate as a percent, for example 5.3 for 5.3%.

Enter last year and this year's prices, please.

Enter prices as doubles

2

2.5

25.00%

Do you wish to do another? y

Enter last year and this year's prices, please.

Enter prices as doubles

5000

5200

4.00%

Do you wish to do another? n

At the end of a five-year life, a company will dispose of an asset and recognize a gain of $6,000. If the company's cost of capital is 15 percent and its tax rate is 30 percent, what is the present value of the future cash flow?

a. $14,078

b. $6,000

c. $2,087

d. $895

You are an investor with an investment horizon of one year and a certain degree of risk aversion. Your task is to determine the efficient frontier in the case of two risky securities and one risk-free (T-bill) security and select the optimal portfolio depending on your risk-aversion parameter. You need to do your work on an EXCEL SPREADSHEET!

*Note: select two risky securities and one risk-free (T-bill) security OF YOUR CHOICE.

1- Choose

• A well-diversified risky bond B represented by its E(RB) and STDB.

• A well-diversified stock fund S represented by its E(RS) and STDS.

• A T-bill with one-year maturity represented by RF.
  2- Choose a correlation coefficient between B and S.
  3- Make simulations on STD and E(R) of a "complete" portfolio (formed with B and S) by varying the weights allocated on B and S.
  4- Construct and graph the opportunity set (feasible set) for B and S from your simulations.
  5- Compute the weights of the tangent portfolio (T).
  6- Compute the STDT and E (RT) of the tangent portfolio (T).

  7- Add the T-bill to your portfolio and redo step 3. 8- Repeat step 4 with the T-bill rate.

9- Choose different risk aversion parameters and determine your optimal weights in T and F and for the implied optimal portfolio compute the E(R) and STD.
10- Provide a summary of your results

THANK YOU SO MUCH, I REALLY APPRECIATE YOUR HELP :)

Many taxpayers are surprised when they are hit by the AMT at year end and there is pressure to repeal it. Research and find the average percentage of taxpayers, individuals and corporations that have been subject to AMT in the last 5 years. Comment on your findings and discuss whether the AMT should be maintained or repealed and provide justifications for your position.