Credit risk measures using the structural model: assume a company has the following characteristics.
Time t value of the firm’s assets: At = $3,000
Expected return on assets: u = 0.05 per year
Risk-free rate: r = 0.02 per year
Face value of the firm’s debt: K = $2,000
Time to maturity of the debt (tenor): T – t = 1 year
Asset return volatility: σ = 0.35 per year
(a) Calculate the probability that the debt will default over the time to maturity.
(b) Calculate the expected loss.
(c) Calculate the present value of the expected loss.

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.

Which of the following has the largest impact on opportunity cost

15. chef a insists that roux is the traditional thickener for bisque. chef b insists that it's rice. which chef is correct? a. neither chef is correct. b. both chefs are correct. c. chef b is correct. d. chef a is correct.