1. Which of the following is not an indication that an investor company has the ability to significantly influence an investee?
A. Material intercompany transactions.
B. The company owns 30 percent of the company but another owner holds the remaining 70 percent.
C. Interchange of personnel.
D. Technological depend
An insurance company purchased bonds issued by Hartnett Company two years ago. Today, Cookeres Company has begun to issue junk bonds and is using the funds to repurchase most of its existing stock. Why might the market value of those bonds held by the insurance company be affected by this action?
You are an analyst following two companies, Company X and Company Y. You have collected the following information:
-The two companies have the same total assets.
-Company X has a higher total assets turnover than Company Y.
-Company X has a higher profit margin than Company Y.
-Company Y has a higher inventory turnover rat
I think the decision to oppose the opposition is dependent on the corporate culture. I know that there are cultures where the management team's decision is a final decision and no other voice can change this decision. If you voice your concern or opposition, it could mean the end of your career at the company. The individual t
Suppose that you are the manager and sole owner of a highly leveraged company. All the debt will mature in 1 year. If at that time the value of the company is greater than the face value of the debt, you will pay off the debt. If he value of the company is less than the face value of the debt, you will declare bankruptcy and the