Your company asked you to evaluate two potential projects. These projects are active
for 10 years and have no salvage life. Both have the same upfront costs, but the
revenue stream from each of the projects is subject to variation, so risk is involved.
Several years ago Polar Inc. acquired an 80% interest in Icecap Corp. The book values of
Icecap's asset and liability accounts at that time were considered to be equal to their fair
values. Polar's acquisition value corresponded to the underlying book val
Question 1: Detmer Enterprises has budgeted sales for the next four months as follows:
Budgeted Sales in Units
Past experience has shown that the ending inventory
Treatment As per
Statement of Financial Accounting Standards No. 160
Income on Sandberg Companys Consolidated Statement of Income
income on Sandberg Companys Consolidated Statement of Income
Less: Gain on sale
Total for Consolidation Statement 88000
Less : Depreciation (75%)
Net Book Value
Less : Net book value
Less : Tax @ 40%
Net Salvage Value = sale value less Tax on Gain
Two securities were analyzed and the following sample statistics were found: Var1 = 23.5; Var2 = 44.6; Covariance12 = 23.3.
What is the correlation co-efficient between securities 1 and 2?