CHAPTER 21 Accounting for Leases ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Brief Exercises Topics Questions *1. Rationale for leasing. 1‚ 2‚ 4 *2. Lessees; classification of leases; accounting by lessees. 3‚ 5‚ 7‚ 8‚ 14 *3. Disclosure of leases. 19 *4. Lessors; classification of leases; accounting by lessors. 5‚ 6‚ 9‚ 10‚ 11‚ 12‚ 13 6‚ 7‚ 8‚ 11 *5. Residual values; bargainpurchase options; initial direct costs. 15‚ 16‚ 17‚ 18 *6
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Debt/Equity Ratio What Does Debt/Equity Ratio Mean? A measure of a company’s financial leverage calculated by dividing its total liabilities by its stockholders’ equity; it indicates what proportion of equity and debt the company is using to finance its assets. http://financial-dictionary.thefreedictionary.com/debt%2Fequity+ratio ’Debt/Equity Ratio’ A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings
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considering a project which costs $123‚900 to undertake. The project will yield cash flows of $4‚894.35 monthly for 30 months. What is the rate of return on this project? 7. Your insurance agent is trying to sell you an annuity that costs $100‚000 today. By buying this annuity‚ your agent promises that you will receive payments of $384.40 a month for the next 40 years. What is the rate of
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Background Lyons Company began as a family stationary supply business. In the early 1990’s‚ document storage opportunities began to emerge. In 1993‚ Lyons Document Storage Corporation was incorporated and emerged into the competitive industry of off-site document storage. At this time also‚ the stationary supply business began to grow more competitive with big box giants like Office Max‚ Office Depot and Staples. Aside from these two factors‚ the Lyons Company had management difficulties regarding
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potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment? a. The cash flows are in the form of a deferred annuity‚ and they total to $100‚000. You learn that the annuity lasts for only 5 rather than 10 years‚ hence that each payment is for $20‚000 rather than for $10‚000. b. The discount rate increases. c. The riskiness of the investment’s cash flows decreases. d. The total amount of
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A Project on “PRODUCT PORTFOLIO & DEMAND ANALYSIS” Submittedinthe partial fulfilment forthe requirementof Theawardof degree of Mastersof ManagementStudies (MMS –II) Of MumbaiUniversity Submittedby Ms. Pooja Singh RollNo: 19 MMS–II Year:2013-14 Underthe guidanceof Prof. D.C. Kute ChanguKana ThakurInstituteof ManagementStudiesandResearch Plot–1&4‚Sector–11‚ Khanda Colony‚ NewPanvel(w) –410206 DECLARATION
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Empanelment of Financial Consultant for BOT (Toll)/ BOT (Annuity)‚ OMT‚ SARDP (NE) and other Projects being undertaken by NHAI Sh. B. D. Sharma Manager (F&A) National Highways Authority of India G – 5 & 6‚ Sector – 10 Dwarka‚ New Delhi – 110 075‚ INDIA Tel : 0091 – 11 – 25074100 / 25074200 Extn. 2437 February‚ 2013 REQUEST FOR EXPRESSION OF INTEREST FOR INCLUSION OF NAME IN THE PANEL OF FINANCIAL CONSULTANTS FOR BOT (TOLL) /BOT (ANNUITY)‚ OMT AND OTHER PROJECTS BEING UNDERTAKEN BY NHAI
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II. Income from services is taxed to the person who earns the income. III. The assignee of income from property must pay tax on the income. IV. The person who receives the benefit of the income must pay the tax on the income. Betty purchased an annuity for $24‚000 in 2012. Under the contract‚ Betty will receive $300 each month for the rest of her life. According to the actuarial estimates‚ Betty will live to receive 96 payments and will receive a 3% return on her original investment. If Betty lives
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meaningful "like to like" basis.” (1) In this paper‚ we are going to examine why the concept of present value is so important to corporate finance. We are also going to complete some example problems concerning present value‚ future value and annuities. Let’s examine why the concept of present value is important to corporate finance and why it’s often the first topic taught in any finance class. Why is the concept of present value important to corporate finance? According to Wikipedia.com‚
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HEC Paris Financial Markets Spring 2012 Final Exam “Cheat Sheet” 0. Basic Statistics (a) Consider an n-outcome probability space with probabilities p1 ‚ p2 ‚ . . . ‚ pn . Consider two discrete random variables X and Y with outcomes (X1 ‚ X2 ‚ . . . ‚ Xn ) and (Y1 ‚ Y2 ‚ . . . ‚ Yn ). 2 The we have the following formulas for means (µX ‚ µY )‚ variance (σX )‚ standard deviation (σX )‚ covariance (σX‚Y )‚ and correlation (ρX‚Y ) µX = EX = E(X) = p1 X1 + p2 X2 + · · · + pn Xn µY = EY = E(Y ) =
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