have different REPs and that it is impossible to determine the REP for the market as a whole, because it does not exist. We also investigate the relationship between (IEP – g) and the risk free rate. There is a kind of schizophrenic approach to valuation: while all authors admit different expectations of equity cash flows, most authors look for a unique discount rate. It seems as if the expectations of equity cash flows are formed in a democratic regime, while the discount rate is determined in a
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Journal of Accounting and Economics 31 (2001) 255–307 Empirical research on accounting choice$ Thomas D. Fieldsa, Thomas Z. Lysb,*, Linda Vincentb b Graduate School of Business Administration, Harvard University, Boston, MA 02163, USA Kellogg Graduate School of Management, Northwestern University, Evanston, IL 60208, USA Received 21 January 2000; received in revised form 31 January 2001 a Abstract We review research from the 1990s that examines the determinants and consequences of accounting
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PROJECT REPORT (Submitted for the Degree of B.com Honours in Accountancy and Finance under the University of Calcutta.) A Survey on Accounting & Reporting of Intangible Assets in some selected Indian companies Submitted by Name: MAITREYEE MUKHERJEE Registration no: 043-1221-0272-10 Roll no: Name of the
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separated from the business acquired. This means that in figuring an actual dollar amount for goodwill the entire value of the business must be determined and evaluated (FASB 350-20-55). Impairment under U.S. GAAP GAAP regulations mandate that the test for impairment must be made at least annually, and allows for periodic impairment should market conditions or other events suggest that a company’s
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EXECUTIVE SUMMARY The following report contains a critical analysis of the capital structure strategy employed by Leighton Holdings Ltd during the Global Financial Crisis (GFC) and also an assessment of optimal capital structure Leighton should use to fund future investments. Examination of the changes of the capital structure of the company over pre-GFC and post-GFC period (2004-2010) reveals a range of considerations were deliberated in the financing decision; these include not only the capital
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two liquidity ratios-current and quick- and a solvency ratio-debt-to-equity ratio. Finally, the third exercise identifies and explains deficiencies in the balance sheet of the Marcus Clothing Corporation Calculating ratios 1. Current assets Acid –test ratio =1.2, therefore 1.2 = (Current Assets –Inventory)/Current Liabilities 1.2 = (Current Assets-840000)/ Current Liabilities 1.2* Current Liabilities +840000=Current Assets Also, Current Ratio =2.25, therefore 2.25= Current Assets/Current Liabilities
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Introduction Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Hampton's customer base is made up primarily of military aircraft manufactures and automobile manufacturers in the St. Louis area. Hampton felt the boom in the 1960 with record setting profits in the mid to late 1960. Hampton slowed down in the 1970s with the withdrawal from Vietnam War and the oil embargo. Hampton stabilized by the late 1970s and now has a larger market share, as other competitors were
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Barclays CoCos 1 What is a Contingent capital bond and how do they work? A Contingent capital bond, also known as contingent convertibles, is a contingent capital investment, which, according to the article, is a “relatively new form of capital conceptualized in the wake of the crisis.”1 According to the frequently asked questions on the issue, “contingent capital securities are hybrid securities issued by financial institutions that are intended to provide leverage in good economic times
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nice case study |Bull Story |Bear Story | |Financial Strength and Stability |Economy Changes Discretionary Spending | |Dominant Market Position |May Not be Embraced Overseas |
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performance, the assets and the key problems faced in the financial report (Bauer, 122). The cash flow analysis calls for investigation and within Gator’s discounted cash flow analysis, there are numerous assumptions that need consideration in the valuation of which audit procedure adopted. In the Goodwill Impairment Analysis Summary, the key assumptions looked at concerned the financial flow of the cash handled in the company. These were the discount rate, depreciation rate, incremental working
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