What qualifies as a like-kind exchange?

Q: What is the IRR of this offer?

A: Capital budgeting methods are the used for finding the profitability of capital projects. It is a…

Q: Give recommendations on how to reduce exchange rate exposure.

A: Exchange rate risk, often known as foreign exchange (forex) risk, is an inevitable risk of…

Q: The like-kind exchange rules are elective. True or false

A: Like kind exchange is when money from selling one assets is invested in similar types of assets than…

Q: What follows is a very explicit discussion of like-kind exchanges under IRC provisions?

A: Section 1031 of IRS  refer to the exchange of one financial property for another that allows…

Q: What is over-the-counter (OTC) trade?

A: It is an electronic communications network which permits the investors to sell and buy the stocks.…

Q: What is a standby commitment? When and why is it used?

A: A formal contract between a borrower and bank, that the bank will lend a certain amount to him/her…

Q: Which method is more efficient to obtain an equivalence?

A: Answer: The concept of equivalence tends to compare the cash flows in such a way that two…

Q: Describe the incremental Analysis for Comparing Mutually Exclusive Alternatives?

A: The question is based on the concept of Incremental cash flow analysis of mutually exclusive…

Q: What would be the TIE ratio under its relaxed policy?

A: Lets understand the basics. Times earned interest ratio indicates how many times company EBIT covers…

Q: What is AB Share Mechanism and what is this mechanism used for?Provide Example

A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…

Q: Explain Derivative security?

A: Derivatives security: A derivative security is considered as a financial instrument whose value is…

Q: Explain how to defer gains using the like-kind exchange rules.

A: A like kind exchange is defined as the tax deferred transaction, which used to allow regarding the…

Q: Do you think the Ricardian Equivalence is realistic?

A: Ricardian equivalence theory : In simple words, Ricardian equivalence can be understood as an…

Q: What are Equal-Payment Series?

A: Equal payment refers to the equal net periodic cash flows that an investor receives during the life…

Q: What is goodwill and how is it measured?

A: Intangible Assets: Intangible assets are the long-term assets having no physical existence. However,…

Q: What is interstate public offering?

A: Companies want money to expand the business and there are limited resources as a private company, so…

Q: ortion

A: Corporation earning can we sub divided into parts  Use to distribute the dividend  Retain the…

Q: Which method is a more efficient way to obtain an equivalence?

A: Equivalence helps to equate the cash flows in such a manner that two cash flows occurring at…

Q: What are some factors thatmight lead to synergy?

A: Introduction: When two companies combine and raise the valuation of the new firms and thereby…

Q: Define the following relative to like-kind exchanges: Boot Postponed gain or loss Gain or loss…

A: The like kind exchange is defined as the transaction of tax deferred which allows for asset disposal…

Q: How are non controlling intrerests (NCI) affected by intragroup transactions?

A: Non-controlling interests are the ownership is defined where the shareholder holds less than 50% of…

Q: In what circumstances would goodwill be long-lived or short-lived?

A: Goodwill is a part of assets that is reported on the balance sheet. It is an intangible asset (that…

Q: Define the Equal-Payment Series?

A: Answer: The main goal of this investment method is to calculate the present value of equivalent…

Q: What is mutually exclusive projects?

A: Mutually exclusive projects are capital projects which engage directly with each other. It differs…

Q: Use the AE Method to Compare Mutually Exclusive Alternatives?

A: In capital budgeting, AE (equivalent annual cost) method is the total cost of maintaining and…

Q: How can we use the AE Method to Compare Mutually Exclusive Alternatives?

A: The AE method is used to compare mutually exclusive alternative as explained below,

Q: Describe the procedure used for Incremental Analysis for Comparing Mutually Exclusive Alternatives?

A: Mutually exclusive alternatives are those alternatives in which only one alternative can be selected…

Q: In what ways do exchanges reduce contracting costs and risks?

A: 1) Contracting Cost: Whenever a company or an entity enters into a contract with the customer or any…

Q: What are intracompany comparisons? What are intercompany comparisons? How do they differ?

A: The examination of two or more procedures, papers, benchmark datasets, or other items is referred to…

Q: can goodwill be amoritized?

A: Goodwill: Goodwill is an intangible asset to the company. However, goodwill is recorded in the books…

Q: exchange gain or loss

A: As per IAS 21 ( The effect of changes in foreign exchange rates), a foreign currency monetary item…

Q: Discuss the features that differetiateorganised exchanges from the over-the-counter market

A: the question is based on the concept of stock exchange trading mechanism and over the counter…

Q: Differentiate between public and private syndications?

A: Syndicate: A syndicate is a provisional agreement of businesses that connects together to manage a…

Q: What is goodwill?

A: Before acquiring a business, the vendor evaluates the business on various parameters. Goodwill is…

Q: Competitive and Negotiated Offers - What are the comparative advantages of a competitive offer and a…

A: A competitive used to offer the situation, which use to exist the at the time of the department for…

Q: What is a proxy fight?

A: Introduction: A proxy fight is an unfriendly competition for the control throughout an institution.…

Q: Compare the Mutually Exclusive Alternatives, based on IRR?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: If these projects were independent, which project(s) would be accepted? Why? If these projects were…

A: We use different capital budgeting tools to determine the financial feasibility of projects that are…

Q: illustrate the different exchange rates regimes.

A:

Q: Explain what is goodwill?

A: Solution:- Introduction:- Goodwill is an intangible asset. Goodwill arises when a company looking…

Q: Give examples of the Equal Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: What is a “floater”/“inverse-floater” tranche in a CMO offering?

A: CMO( Collateralized mortgage obligation): The financial instrument which is collateralized by the…

Q: What is put–call parity?

A: Conditions where two or more things are equal are known as parity. It refers to two securities…

Q: Explain Amortize Goodwill? Give an example?

A: Amortize Goodwill: Goodwill is an intangible asset amortization of goodwill means a reduction in the…

Q: What is an inter vivos trust?

A: Inter Vivos Trust: An inter vivos trust is a kind of trust which is made in the lifetime of the…