Which of the Following Is Not One of the Stages

question 12

Multiple Choice

Which of the following is not one of the stages used to determine minority interests?

• A) The minority interest in the current period's profit or loss.
• B) The minority interest in share capital at the date of acquisition of the subsidiary by the parent entity.
• C) The minority interest in the goodwill at acquisition.
• D) The minority interest in reserves at the date of acquisition of the subsidiary by the parent entity.
• E) The minority interest in post-acquisition changes in reserves.

---

Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Component Cost of Debt

The effective rate that a company pays on its current debt, incorporating tax effects.

Preferred Shares

Preferred Shares are a type of stock that grant holders preferential treatment over common stockholders in terms of dividends and assets during liquidation, but usually do not carry voting rights.

Rate of Return

The increase or decrease in the value of an investment, shown as a percentage of the original amount invested, over a given timeframe.