Impairment of Securities Securties are classified into one of three categories: available for sale, held to maturity, or trading. The concept of impairment does not really apply to trading securities as they are only held for short periods. The impairment of securities that are deemed available for sale or held to maturity is a three step process. The first step is to determine if the security is impaired by comparing the fair value to the cost of the security. The cost includes any amortization
Words: 482 - Pages: 2
1. Describe Linear Technologies payout Being very successful and having positive cash flows, Linear Technology announced its first dividend payment to its shareholders in October 1992. This is for giving the credibility to investors. Linear set dividend at $0.05 per share and this amounted to $8.3 million, or 15% of 1994 earnings. Linear continued their policy to increase dividend in 2002 when company's drop in sales and earnings so their payout ratio increased to 25%~30%. Considering the general
Words: 337 - Pages: 2
disposal cost is greater of $1000 or ACB. Similarly, PoD are greater actual proceeds and $1000. - LPP: segregates collectibles (works of art, rare books, coins, jewelry and stamps). Losses claimed agst other LPP gains - Other capital property: stocks, bonds, real estate, partnership interest, machinery, etc 100% 50% Capital Gain Taxable Capital Gains Capital Loss Allowable Capital Losses Capital gains exemption Capital gains deduction PoD – value of consideration received or receivable ACB –
Words: 457 - Pages: 2
MODULE 8 – CAPITAL GAINS/LOSSES – FUNDAMENTALS & INTEGRATION CAPITAL GAINS/LOSSES – FUNDAMENTALS Text Coverage – Chapters 7 & 8 You are NOT responsible for the following paragraphs: 7,240 – 7,260.20 7,306 7,370 7,380 7,500 7,600 7,720 8,000 – 8,300 Change in use of a principal residence Special relief for tax-deferred elections made prior to March 4, 2010 Capital gains deferral Certain shares deemed to be capital property Death of a taxpayer Leaving and entering Canada Allowable business investment
Words: 1792 - Pages: 8
Bond market is a financial market where bond market participants can issue new debt securities, known as the primary market, or buy and sell the bonds among investors, known as the secondary market. The Securities Industry and Financial Market Associations (SIFMA) classifies the bond market into following types : Types of bond markets * Government and Agency Government-sponsored enterprises (GSEs) issues the government and agency securities to fund their daily operations. These government
Words: 317 - Pages: 2
Titman (2001) MM I Definition – Financing and risk management choices will not affect firm value if the following conditions hold: (1) Total cash flow to a firm’s financial claimants are unaffected by these choices; (2) Efficient markets Frictionless and complete markets are clearly sufficient for capital structure irrelevant. MM II Corporation need not be concerned about the market conditions and needs of investors when designing their financial structures Definition – the cost of capital
Words: 754 - Pages: 4
Personal Risk Tolerance Questionnaire for Retirement Planning Please use this Risk Questionnaire to determine your personal risk tolerance. Based on your answers, you will be directed to one of the Model Portfolios on the back of this page. These model portfolios can serve as a starting point for developing your own allocation mix. Please answer each of the six questions and circle the number opposite the answer that best represents your opinion. Add up the circled numbers in the column on the right
Words: 777 - Pages: 4
resulting from the SPT deal, loan and deposit. This interest rate differential FWD price model holds true for all investment assets. The asset yield can take different forms - the dividend yield in the case of stocks, the coupon rate in the case of bonds - but the FWD price model as a function of the SPT price, the asset yield and the cash interest rate remains valid. Date USD Cashflow Exchange Rate AUD Cashflow Borrow AUD 1,250 for 1 yr @ 8% Today 1,250.00 Buy USD 1,000 @ 0.8000 with a SPT
Words: 411 - Pages: 2
Evaluating Performance 1. Introduction Choosing investments is just the beginning of your work as an investor. As time goes by, you’ll need to monitor the performance of these investments to see how they are working together in your portfolio to help you progress toward your goals. Generally speaking, progress means that your portfolio value is steadily increasing, even though one or more of your investments may have lost value. On the other hand, if your investments are not showing
Words: 5272 - Pages: 22
. Question : (TCO A) Which of the following statements is CORRECT? Student Answer: One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. Sole proprietorships are subject to more regulations than corporations. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. Sole proprietorships and partnerships generally
Words: 1251 - Pages: 6
