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Q: Prepare the following a. Direct method  b. Step-down method (allocate MR first)  c. Step-down…

A: Part a: Direct Method: Workings:

Q: Define breakup value

A: The breakup value is the valuation of the company for liquidation in the market. It is best known as…

Q: A loss contingency should be accrued when the amount of loss is known and the occurrence of the loss…

A: Accrued liabilities result when an expense has occurred but the payment is yet to be made for the…

Q: Broker to an issue advantages and disadvantage

A: Broker are very important in the today world because they have some advantages over other options…

Q: What is Insolvencey?

A: Liability: It is the legal financial debt owed by a company to outside entities that arises over the…

Q: Define defensive merger

A: Answer: Defensive merger means a merger in which a firm joins with other firm to avoid takeover by a…

Q: Define Horizontal analysis

A:

Q: Types of Trusts?

A: The types of trusts as follows: Living trust: One of the usually shaped trust is an inter vivos…

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: Define trade-off theory

A: Answer: The trade-off theory suggests a leveraged company’s valuation is equal to the value of an…

Q: When is consolidation not required?

A: Consolidation is the process of consolidating the financial statements of the investee which it…

Q: difference between owner fund & borrowed fund

A: The funds can be raised from various sources of finance such as equity, preference shares, debt in…

Q: Explain how to defer gains using the like-kind exchange rules.

A: A like kind exchange is defined as the tax deferred transaction, which used to allow regarding the…

Q: In an acquisition where 100% control is acquired, how would the land accounts of the parent and the…

A: A consolidated financial statement is a financial report that combines the financial statements of…

Q: What’s the difference between a hostile and a friendly merger?

A: A hostile takeover comes around when one company, the obtaining company, tries to require over…

Q: Draw the diamond rule structure

A:

Q: E(r) D E O Exercise #2 (Slide 23; Chapter 6; Four Elements of the Capital Allocation Line) a)…

A: Capital Allocation Line is a line that represents risk and reward generated by various portfolios…

Q: Define each of the following terms:f. White knight; proxy fight

A: A white knight is hostile acquisition security by which a 'friendliness' person or business who…

Q: Define and differentiate a spin-off, split-off, and split-up.

A: A SPIN-OFF means when the company distributes its fresh issue of shares of the new subsidiary to…

Q: Which counter party in a clasi6repo usually takes an intial margin?

A: In a classic repurchase agreement, or "repo" for short, the party that takes the initial margin is…

Q: What are the four basic steps involved in the execution of a nenemergency change order?

A: The change order is the order in which the specifications of particular material are changed or the…

Q: what does the voting rights of the Exchange mean?

A: Shareholder voting indicates the privilege given to shareholders to take part in the decision making…

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: What is a three-way match? Give an example?

A: Three-way Match: The verification of the purchase transaction by the accounts payable department is…

Q: Describe a three-way match.

A: Accounting Information System (AIS):   The system which helps to gather, store and process the…

Q: Define asymmetric hedge

A: A strategy that helps to reduce the loss which occurs from the movement of the asset's price is term…

Q: 6, 7, and 8 are not answe

A: 4. What was the cost of goods manufactured for the year -$ 912,1005. What was the cost of goods sold…

Q: two questions

A: Prepare an income statement.

Q: What is eviction?

A: Eviction as per law is the process of civil nature in which court allows landlord to legally remove…

Q: What is horizontal merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates…

A: Lets understand the basics. When there is requirement to choose between sale at split of point or…

Q: Explain consignment arrangement with example.

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Q: the last answer is incorrect, try again

A: Future value of the amount is the amount of deposit done and amount of interest accumulated over the…

Q: Define spin-out

A: Introduction: Spinouts helps the parent corporation by permitting it to emphasis on its core…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.