A corporation that is controlled by another corporation because the controlling corporation owns more than 50% of the its stock. Investments in stocks and bonds that are not intended to be converted into cash in the short term. The price of one currency stated in terms of another currency.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter14: Distributions To Shareholders: Dividends And Repurchases
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A corporation that is
controlled by another
corporation because the
controlling corporation
owns more than 50% of
the its stock.
Investments in stocks and
bonds that are not
intended to be converted
into cash in the
short term.
The price of one currency
stated in terms of another
currency.
A corporation that owns a
controlling interest in
another corporation.
1.
Foreign Exchange Rate
2.
Equity Method
An accounting protocol
used for long-term
3.
Available-for-Sale Securities
investments when the
investor has significant
influence over the
4.
Subsidiary
investee.
5.
Long-Term Investments
Long-term investments in
debt securities that are
6.
Parent
not classified as held-to-
maturity
7.
Return on Total Assets
securities.
8.
Consolidated Financial Statements
Financial statements that
show the results of all
Held-to-Maturity Securities
operations under the
control of a company
9.
owning more than 50% of
the stock of other
10. Multinational Business
investee companies.
A company that operates
in a large number of
different countries.
Debt securities that the
company has the intent
and ability to hold until
they come due.
A measure of a company's
operating efficiency,
computed by expressing
net income as
a percentage of average
total assets.
Transcribed Image Text:A corporation that is controlled by another corporation because the controlling corporation owns more than 50% of the its stock. Investments in stocks and bonds that are not intended to be converted into cash in the short term. The price of one currency stated in terms of another currency. A corporation that owns a controlling interest in another corporation. 1. Foreign Exchange Rate 2. Equity Method An accounting protocol used for long-term 3. Available-for-Sale Securities investments when the investor has significant influence over the 4. Subsidiary investee. 5. Long-Term Investments Long-term investments in debt securities that are 6. Parent not classified as held-to- maturity 7. Return on Total Assets securities. 8. Consolidated Financial Statements Financial statements that show the results of all Held-to-Maturity Securities operations under the control of a company 9. owning more than 50% of the stock of other 10. Multinational Business investee companies. A company that operates in a large number of different countries. Debt securities that the company has the intent and ability to hold until they come due. A measure of a company's operating efficiency, computed by expressing net income as a percentage of average total assets.
Expert Solution
Step 1

(a) Subsidiary.

The company which is owned and controlled by other company is called subsidiary company.

 

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