Alexas Corporation Reports the Following -If Price to Book Value at the End of 2005

question 51

Multiple Choice

Alexas Corporation reports the following:
$\begin{array}{|l|l|}\hline&\mathbf{2 0 0 5}\\\hline \text { Earnings per share } & \$ 1.80 \\\hline \text { Dividends per share } & \$ 0.72\\\hline \text { Book Value per share-end of year } & \$8.62\\\hline\end{array}$
-If Price to book value at the end of 2005 equals 1.00, and return on beginning of year equity is expected to remain constant, then cost of equity (to nearest percent) equals:

• A) 15%
• B) 21%
• C) 24%
• D) Not determinable

Recognize and account for other comprehensive income or loss under the equity method.

Transition between equity method and fair value method when applicable.

Evaluate and audit the appropriateness of using the equity method for investment accounting.

Understand the differences in equity method accounting under International Accounting Standards and FASB ASC.

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Definitions:

Emotional Regulation

The process by which individuals influence their emotions, how they experience them, and how they express them.

Parental Expectations

The beliefs or hopes parents have regarding their children's behavior, achievements, and general life path, which can significantly influence children's development.

Echolalia

the repetition of phrases or noises that an individual hears, often observed in children with autism and certain language disorders.

Communication Skills

The ability to convey or share ideas and feelings effectively.