Ravine corporation purchased 30 percent ownership of valley industries for $90,000 on january 1, 20x6, when valley had capital stock of $240,000 and retained earnings of $60,000. the following data were reported by the companies for the years 20x6 through 20x9: dividends declared year operating income, ravine corporation net income, valley industries ravine valley 20x6 $ 140,000 $ 30,000 $ 70,000 $ 20,000 20x7 80,000 50,000 70,000 40,000 20x8 220,000 10,000 90,000 40,000 20x9 160,000 40,000 100,000 20,000 required: a. what net income would ravine corporation have reported for each of the years, assuming ravine accounts for the intercorporate investment using the cost method and the equity method? b-1. give all appropriate journal entries for 20x8 that ravine made under the cost method. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Atax on the sellers of coffee will a. increase the price of coffee paid by buyers, increase the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. increase the price of coffee paid by buyers, increase the e ffective price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. d. increa se the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Aminor has the legal right to repudiate