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Use the following information to solve the following questions:
Red Corp. owns 3,000 of the 10,000 outstanding common shares of Grey Corp. and exercises significant influence. During 2020, Grey reported net income of $ 120,000 and paid total cash dividends of $ 40,000.
-Red Corp. should report investment revenue for 2020 of
Discount Factor
A multiplier used in discounting to calculate the present value of future cash flows or earnings.
Working Capital
The difference between a company's current assets and current liabilities, indicating the liquidity and short-term financial health of the business.
Discount Rate
The interest rate used to discount future cash flows to their present value.
Salvage Value
The assessed salvage value of an asset at the close of its lifespan.
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