Answer:
The correct answer is $0
Explanation:
Solution
An Impairment loss recognized when a book value of reporting company is more than its fair value, In the given example, the book value is not more than its fair value or higher than the value, hence the amount of the impairment loss that Antle Inc would record for goodwill at the end of 2021 is: Impairment loss is $0
Answer:
The correct option is (A).
Explanation:
A statistical study is a process of making inferences about the population using the sample data.
In a statistical study the researcher first conducts an experiment and compute certain sample statistic. Then uses these sample statistics to derive conclusions about the population.
If the sample size is large enough then the sample statistics can be used to estimate the population parameter values.
Or using these sample statistic the researcher can apply a hypothesis test to determine whether the claim made about the population as a whole is true or not.
Thus, the correct option is (A).
Answer:
Roderick will get $689.421 after 6 years
So option (d) is correct
Explanation:
We have given that Roderick invested $500 at a rate for 6 years
So principle amount P = $500
Rate of interest r = 5.5 %
Time n = 6 years
We have to find total amount which Roderick get after 6 years
We know that total amount is given by
So total amount 
So Roderick will get $689.421 after 6 years
So option (d) is correct
Answer:
A. 12.1%
B. 8.9%
Explanation:
a. Calculation for What is the company's new cost of equity
Using this formula
New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]
Let plug in the formula
New cost of equity=[0.089+[(0.089-0.057)*(1)*1]
New cost of equity=[0.089+0.032*(1)*1]
New cost of equity=[0.121*(1)*1]
New cost of equity=0.121*100
New cost of equity=12.1%
Therefore the company's new cost of equity will be 12.1%
b. Calculation for What is its new WACC
Particular Weight Cost Weighted cost
Equity 0.5000 *12.1% = 0.0605
Debt 0.5000 * 5.7% =0.0285
WACC =0.089*100
WACC =8.9%
(0.0605+0.0285)
Therefore the new WACC will be 8.9%
<span>For the amount invested in the 20 year annuity immediate,
the return will be;
r/(1 - (1+r)^-n) = 0.05/(1- 1.05^-20)
= 0.0802425872
= 8.02425872%
Now, return on perpetuity-immediate = 5%
So, 5% + </span>8.02425872% = 13.02425872<span>
for equal returns from both investments,
X = 5/(13.02425872) x 640,000
= $245,695.365
= $ 245,695.36 </span>
