Under Which Method Does the Statement of Comprehensive Income Show

question 8

Multiple Choice

Under which method does the Statement of Comprehensive Income show "Equity in earnings of Subsidiary"?

• A)Cost method
• B)Equity method
• C)Modified equity
• D)Consolidation

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Definitions:

Market Price

The market price at which you can currently buy or sell an asset or service.

Interest Tax Savings

The reduction in tax payments resulting from the deduction of interest payments on debt from taxable income.

Discount Rate

In DCF analysis, the rate used to calculate the present worth of future cash flows.

NOPAT

NOPAT (Net Operating Profit After Taxes) is a financial metric that calculates a company's potential cash earnings if it had no debt, focusing on its operational efficiency.