Generally Accepted Accounting Principles

Tangibility: Tangibility represents a firm’s investment in fixed asset as a component of total asset. Tangible assets are broadly accepted determinants of capital structure because fixed assets provide security to the capital provider by directing a claim against capital erosion. Information asymmetry between borrowers and firms increases the agency cost of debt which can be reduced by using adequate tangible assets that may serve as collateral to issue debt (Jensen & Meckling, 1976). This is…

1. Define Stockholder and stakeholder. What is the difference between the two? Stockholder: A man who claims shares in an company and consequently gets some portion of the company's benefits and the privilege to vote on how the company is controlled. Stakeholder: A stakeholder is anyone who can influence or is influenced by an association, venture. They can be internal or external and they can be at senior or junior levels. Difference between Stockholder and Stakeholder: 1. Stockholder (…

1 John Xuan Dinh RMI 2101 Prof. Wilkins Fall 2016 Homework Assignment 5 20 Points A. What is the ACA? Explain in detail the purpose of the law and how it is intended to operate. What are the key features of the ACA? [10 Points] Health care in the United States has many serious long term issues. First, there are millions of uninsured people. Second, people who do have insurance tend to pay more for it than they would in other comparable countries. The Affordable Care Act, also known as Obamacare,…

There are many responsibilities of being an adult. Being an adult does not mean that someone can go out and buy cigarettes, alcohol, or lottery tickets whenever he or she wants. Being an adult means having responsibilities of bills, taking one’s self to the doctor, and managing one’s money. The definition of an adult in the dictionary is: a person who is fully grown or developed. There are many adults today that still act like teenagers and do the same activities that teenagers do. This is one…

Intrinsic Value SUMMARY SECTION Intrinsic Value, also known as fundamental Value, is the investor’s perception of the actual value of a company or asset. The intrinsic value may or may not be equal to the current market value of an asset. It is used by investors who want to buy stock and other assets at a discount. ARTICLE TITLE: INTRINSIC VALUE CONTENT Intrinsic Value An Intrinsic Value is the value of a company, stock, dividends or assets with less focus on the market price. It is the…

Repayment Discussion – Cash Flow Repayment Discussion – Cash Flow: Collection of lease payments and earnings from the sale of equipment are the primary source of repayment. Management Case Discussion: Management does not and is not required to prepare projections. However, profits are expected to remain stable or increase since the Investment in Direct Financing Leases asset on the balance sheet continues to increase. This asset is a proxy for future performance since it is the PV of all…

Management Style Philip Morris Bangladesh (PMB) is a full affiliate of the parent company Philip Morris International (PMI). PMB operates under PMI’s Asia Pacific Region headquartered in Hong Kong. Since its inception in 1847 in London (UK), Philip Morris has evolved into a global corporation. Accordingly, the management style of the company has also evolved with time. As a full affiliate of the parent company, PMB also follows a dynamic management in terms of style and practices similar to the…

Answer 1: a) Tax consideration: In present scenario, ICI is a subsidiary of a stable and established firm and is in a good state with sufficient revenue generation. It has current debt ratio of 40%. ICI would want to leverage the low debt ratio of Nero for further growth and expansion. This merger can also be used as a way of tax benefits for excess cash flows. Acquisition of a loss making firm can be used to save tax on the acquiring firm’s income. b) Diversification: Although diversification…

Question 1 Call report for BBB Eiendomme (fake name) Business type- BBB Eiedomme consist of ZZ Grocery and total filling station, TTZ Restaurant and ZZ Liquor in the Free state. Current members TT Apples, MM Oranges and CC Pears. Client started the business in 2004, and since managed to expand on the business and grow the sales volumes When it started the sales volumes were on average R2500K per month for filling station. The business started only with a filling station. As the year progressed…

Question 1: Assess the attractiveness of the Telecommunication Industry in 1998? (50%) According to Michael E. Porter’s five forces of analysis we can obtain the opportunities, threats and profitability in Telecommunication Industry. o THREAT OF NEW MARKET ENTRANT. • In 1998 Telecommunication Industry was duopolistic. Manipulated by Eircell (now 02) and Esat Digifone (now Vodafone). Even though Eircell had more market share both the companies enjoyed benefits, profitability and growth in the…