A firm can use which method of financing for an acquisition structured as either an asset or stock acquisition? O Cash O Issuing Debt O Issuing Bond None of the answers

Q: p of answer choices: a) Fair market value b) Equity value c) Discounted present value d) Cost

A: a) Fair market value - Fair market value is the price the invest would fetch on selling in the open…

Q: Bootstrap financings are buyouts financed by a. the company managers' own assets, b. finance…

A: Bootstrap financings in the realm of private equity refer to a distinctive method of funding…

Q: Croger Manufacturing Inc. makes an investment in securities that they intend to hold for a period of…

A: Investment in marketable securities or assets, when done on the basis of held-to-maturity then it is…

Q: Which of the following is an example of long term instruments? (select all that apply) a. Asset…

A: Long Term Instruments are the instruments which are issues for the longer time period, generally…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition:   Equity method: Equity method is the method used for accounting equity investments…

Q: What is the term used for a short-term, unsecured debt sold by a large company to investors without…

A: The correct answer is E. Commercial Paper.Following are features of commercial…

Q: According to the trade-off theory, the decision on capital structure entails a trade-off between the…

A: Capital structure means the way of getting finance from different sources.

Q: True or false - debt-holders (lenders) in (to) a corporation are short (sold) the equivalent of a…

A: We have a statement about debt in a company and its equivalent position as an option. We have to…

Q: Explain the following types of debt and equity investments with no significant influence:   (a)…

A: we will only answer the first three subparts, for the remaining subparts kindlr resubmit the…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: Which of the following is a false statement about applying the equity method? O A. One of the…

A: In accounting, the equity method is used to account for investments when one company holds…

Q: O A. Stocks OB. Bonds OC. Mutual funds D. O D. Cash

A: Assets are resources that are controlled which results from prior transactions that are expected to…

Q: When the market value of a company’s portfolio of available-for-sale securities is lower than its…

A: Valuation allowance account - Contra asset to record "temporary" market changes in FV for HFT/AFS…

Q: Stock returns are unlimited while returns on debt investments are limited to interest payments and…

A: Investment in Equity vs Investment in debt Investment in equity provides a part of ownership in the…

Q: How does a company determine whether to account for an equity investment using the fair value…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: What is a STO Group of answer choices   A security token represents an investment contract into an…

A: STO stands for Security Token Offering, which is a fundraising method in which a company issues…

Q: Bonds can be an effective counterbalance in a portfolio heavily invested in stocks. True False

A: Bonds: It is a type of investment wherein the issuer of the bond promises the holder of the bond to…

Q: Several regulations limit dividend payments. Which of the following do not limit dividend payments?…

A: the following do not limit dividend payments   a. Liability restriction

Q: mature is classified as     A. Trading debt investments     B. Significant influence equity…

A: option C is correct  Available-for-sale (AFS) debt investments

Q: Why would a corporation elect to raise funds via a securitization rather than a corporate bond?

A: An indirect claim security whose value (in whole or in part) is derived from the market price of the…

Q: For each case of a financial asset that is not related to one another, explain (must be accompanied…

A: Step 1   Financial assets are the assets which have the following characteristic   Contractual…

Q: 14) Which of the following is the least liquid current asset? A) Accruals B) Accounts receivable C)…

A: As a result of the fact that inventory consists of goods that are held with the intention of selling…

Q: Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or…

A: Retained earnings is the amount of net income which remains after the distribution of dividends.

Q: Which of the following would affect the cash flows? Asset Swap Exercise of Conversion Privilege…

A: Asset Swap will result in swapping of assets and hence there will be no effect on cash Conversion…

Q: True (t) or False (f) _____ The accounting for short-term debt investments and for long-term debt…

A: The investment is made by the business so as to earn some profits.

Q: The cash flows associated with common stock are more difficult to estimate than those related to…

A: Common stock is the pool of common shares that a company issues

Q: Which one of the following securities is collateralized (secured) by specific assets? debenture…

A: Mortgage bond is collateralized (secured) by specific assets.

Q: What does the book value of debt and equity refer to? O A. The par values of common stock and the…

A: The par value of stock is the price which is usually set at when the stock is issued. It is present…

Q: Describe the equity method and the cost method of investor accounting for acquisitions

A: When there is some acquisition is made in some other business or some part of control is purchased,…

Q: A market where investors trade previously issued securities without the issuing companies'…

A: Stock market is a market were purchasing and selling of the stocks will be done.

Q: Equity investments held for trading fall under FVPL II-Equity Investments at FVPL are presented as…

A: In the given case equity investment held for trading is an investment which may be debt or equity…

Q: 3. Which is not considered as a debt security issued by private entities? a. Straight bonds b.…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Which of the following is a current liability? Select one: A long-term debt maturing currently,…

A: As per IFRS 1  A Current Liability is Liability which is payable with in normal operating cycle…

Q: Which items are NOT other comprehensive income?

A: Comprehensive income can be classified into: Net income Other comprehensive income.   Net income…

Q: Changes in the fair value of the effective portion of a hedging financial instrument are recognized…

A: Financial instruments includes the shares, bonds, futures, stocks, options or any assets which can…

Q: Which of the following is an example of an action done by a firm to conduct financial structuring?…

A: A corporation's financial structure refers to the mix of debt and equity used to support its…

Q: Explain why a company might issue convertible securities instead of straightforward debt or equity.…

A: Convertible security is an instrument , usually a bond or a preferred stock, that can be converted…

Q: The secondary market is the market in which: Select one: a. The sale proceeds of a trade flow to the…

A: Definition : In simple words, The secondary marketplace also referred to as the aftermarket, can be…

Q: In a stock acquisition accounted for by the equity method, a portion of the purchase price often is…

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…