Determine the selling price of the bonds

Q: What is WACC

A: Weighted average cost of capital(WACC) is the average cost of several source of financing. It is…

Q: AS36

A: The core principle in IAS 36 is that an asset must not be carried in the financial statements at…

Q: The acco

A: Accounting equation has been considered as the origination of double entry accounting system. This…

Q: What is the SML? What is the CAPM? What is the APT?

A: Security Market Line (SML):The Security Market Line (SML) is a graphical representation of the…

Q: how this 0.625 comes ?

A: Coupon bond comes with semiannual coupons at a certain rate.  This is the amount of cash received in…

Q: What is CAPM? How about APT?

A: CAPM and APT are two common models for pricing used in finance. These are explained below.

Q: Define attainable set

A: Attainable SetA set of all the portfolios that are possible to be formed by the group of the number…

Q: Define the term realization principle.

A: Accounting: Accounting refers to the information system, where the economic activities of a…

Q: Define Hedging.

A: Hedging is the transfer of risk from a risky financial instrument to another instrument by buying or…

Q: Explain- Agency cost.

A:

Q: Define APR

A: Annual Percentage Rate (APR) is annual interest rate charged for borrowing money. APR is cost for…

Q: What is cpj

A: Financial accounting involves the work of recording and posting of financial transactions into the…

Q: What is a CMO?

A: A collateralize mortgage obligation (CMO) refers to a type of mortgage-backed security that contains…

Q: I Need Formulation

A: Part a: Contribution margin ratio for 2012=Net sales-Total variable costNet…

Q: Trying to find answer a through e

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

Q: What is APR?

A: In US, calculation as well as disclosure of Annual Percentage Rate is basically government by an act…

Q: Q. 7 a) Discuss the main assumptions of CAPM theory. b) Discuss the theoretical and practical…

A: Capital Asset Pricing Model (CAPM) is used to calculate the required rate of return of an asset or…

Q: Working/Application of ABC analysis?

A: Solution Activity based coating (ABC) is a method of assigning overhead and indirect cost -Such as…

Q: what is a P&L

A: P & L : P & L is defined as the Profit and loss statement.  In financial accounting, the…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.