forms/d/e/1FAlpQLSdhx7wkRBg-5ysLm-AeX919m2L5F4Jxzbwov4D68iWUmoFzSg/formResponse?pli=1Suppose that Fattal company acquires exactly 22% of the voting common stockof Company Pfizer Co. for $1,500,000 at the beginning of the year 2020. Pfizercompany reports $2,150,000 earnings for the year in its net income and pays$550,000 in cash dividends at the end of the year 2020.1. Using the cost method, what is the investment income and the balance sheetinvestment account balance respectively for Fattal company?O A) $121,000; $1,500,000B) $473,000; $1,852,000C) $473,000, $150,000D) None of the above.alance

Companies pay dividend to the shareholders according to number of shares holding percentage.

Answered: Suppose that Fattal company acquires…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Additional information: * All purchases of inventories are on credit * The selling and administrative expenses include depreciation of R320 000 * Property, plant and equipment were purchased during the year but there were no disposals * The total dividends for the year ended 31 December 2021 amounted to R360 000 * The issued share capital consisted of 100 000 ordinary shares * The market price of the shares on 31 December 2021 was R35
The market value of the equity of Thompson, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company?
Make a calculation comparing the consideration given against the book value of the consideration acquired. Assume that 100% stake in the XYZ co.s equity is to be paid in cash.
Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above. 2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.
Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividene each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 1,070,000 99,000 (a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year? Net income 29,700 Total net income (b) What was Stellar Co's total net income for the year? 428000 Total Dividends. $ 396000 (c) What was Stellar Co's total dividends for the year? 128400
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