Q&A Hero

Q: You hold 5,000 shares of the 1 million outstanding shares of Wealthy Wranglers common stock. You've just learned that the company plans to issue more shares, so that 2 million shares will be outstanding. This is called _____. A. an advanced equity offering B. a weathered equity offering C. a seasoned equity offering D. a veteran equity offering

Q: Palm owns a 70% interest in Sable, a domestic subsidiary. Sable is not part of Palm's affiliated group. Palm will pay taxes on A) none of the dividends it receives from Sable. B) 20% of the dividends it receives from Sable. C) 66% of the dividends it receives from Sable. D) 80% of the dividends it receives from Sable.

Q: In 2008, the NASDAQ stock market merged with _____. A. Euronext B. OMX, which operates seven Nordic and Baltic stock exchanges C. the International Securities Exchange (ISE) D. BATS

Q: In the long run, input demand becomes moreA) elastic. B) inelastic. C) unit-elastic. D) cost efficient.

Q: When a subsidiary has preferred stock that is convertible into subsidiary common stock, the parent's equity in the subsidiary's diluted earnings is calculated by the number of A) subsidiary shares into which the subsidiary's dilutive securities can be converted times the subsidiary's basic EPS figure. B) parent shares into which the subsidiary's dilutive securities can be converted times the parent's basic EPS figure. C) subsidiary common shares held by the parent times the subsidiary's diluted EPS figure. D) parent shares into which the subsidiary's dilutive securities can be converted times the subsidiary's basic EPS figure.

Q: All major stock markets today are effectively _______________. A. specialist trading systems B. electronic trading systems C. continuous auction markets D. direct search markets

Q: The first antitrust law in the United States was theA) FTC Act. B) Clayton Act.C) Sherman Act. D) Robinson-Patman Act.

Q: In computing consolidated diluted EPS, the replacement calculation replaces the parent's equity in subsidiary earnings with the A) parent's share of basic EPS of the subsidiary. B) subsidiary's share of basic EPS of the parent. C) parent's share of diluted EPS of the subsidiary. D) subsidiary's share of diluted EPS of the parent.

Q: A given industry, Z, is such that the 1 -firm, 2-firm, 4-firm and 8-firm concentration ratios are the same. Based on this, we can conclude that Industry Z isA) pure competition. B) monopolistic competition. C) oligopoly. D) pure monopoly.

Q: Parnaby has 25,000 common stock shares outstanding and its 100%-owned subsidiary Sandal has 5,000 common stock shares outstanding. Parnaby and Sandal do not have any potentially dilutive securities outstanding. The separate net incomes for Parnaby and Sandal is $150,000 and $75,000 respectively. Diluted EPS for the consolidated company is A) $5.00. B) $6.00. C) $7.50. D) $9.00.

Q: Regulation NMS: I. Supports the goal of integrating financial markets II. II. Requires the use of specialists to execute trades III. Requires that exchanges honor quotes of other exchanges when they can be executed automatically A. I only B. I and II only C. I and III only D. I, II, and III

Q: A horizontal merger involvesA) the joining of two firms at different stages of the production process.B) the separation of management from ownership. C) the joining of two firms selling similar products.D) the exchange of debt for stock.

Q: If a parent company has controlling interest in a subsidiary which has no potentially dilutive securities outstanding, then in the calculation of consolidated diluted EPS, it will be necessary to A) only make an adjustment of subsidiary's basic earnings. B) replace the parent's equity in subsidiary earnings with the parent's equity in subsidiary's diluted EPS. C) make a replacement calculation in the parent's basic earnings for the EPS. D) only use the parent's common shares and shares represented by the parent's potentially dilutive securities.

Q: The market share held by the NYSE Arca system in February 2011 was approximately ____. A. 65% B. 45% C. 25% D. 10%

Q: In the above figure, the profit-maximizing monopolistically competitive firm will A) make a profit of $24,000. B) make a profit of $30,000. C) make a profit of $0. D) incur a loss of $20,000.

Q: When a parent acquires the preferred stock of a subsidiary, there will be a constructive retirement and A) any difference paid above the book value of the preferred stock reduces the parent's additional paid-in capital. B) any difference paid above the book value of the preferred stock reduces the subsidiary's retained earnings. C) any difference paid above the book value of the preferred stock increases the parent's additional paid-in capital. D) any difference paid above the book value of the preferred stock increases the parent's retained earnings.

Q: __________ often accompany short sales and are used to limit potential losses from the short position. A. Limit orders B. Restricted orders C. Limit loss orders D. Stop-buy orders

Q: If a monopolist produces to a point at which marginal revenue is less than marginal cost thenA) the firm should increase output. B) the firm should reduce output. C) the firm is maximizing profits.D) we do not know if the firm should increase or reduce without more information.

Q: Assume a company's preferred stock is cumulative with a call provision and has dividends in arrears. The amount of stockholders' equity allocated to preferred stockholders is equal to the number of shares outstanding times the A) sum of the par value per share plus any liquidation premium per share, plus the sum of any preferred dividends in arrears, plus the current year's dividend requirement, but only if dividends have been declared. B) sum of the par value per share, plus any liquidation premium per share, plus the sum of any preferred dividends in arrears, plus the current year's dividend requirement, regardless of whether dividends have been declared. C) call price plus the sum of any preferred dividends in arrears, plus the current year's dividend requirement, but only if dividends have been declared. D) call price plus the sum of any preferred dividends in arrears, plus the current year's dividend requirement, regardless of whether dividends have been declared.

Q: What was the result of high-frequency traders' leaving the market during the flash crash of 2010?A. Market liquidity decreased.B. Market liquidity increased.C. Market volatility decreased.D. Trading frequency increased.

Q: In the long run, the price for a perfectly competitive firmA) will be determined by the firmʹs supply and demand curves. B) will allow for positive economic profits.C) will equal marginal cost where marginal cost is at a minimum. D) will equal the minimum average total cost.

Q: Pan Corporation has total stockholders' equity of $5,000,000 consisting of $1,000,000 of $10 par value Common Stock, $1,000,000 of Additional Paid-in Capital, and $3,000,000 of Retained Earnings. Pan owns 80% of Sailor Corporation's common stock purchased at book value, which equals fair value. Sailor has $900,000 of 10% cumulative preferred stock outstanding, with no preferred dividends in arrears. The preferred stock has no call price, redemption price or liquidation price. Pan acquired 60% of the preferred stock of Sailor for $500,000. After this transaction the balances in Pan's Retained Earnings and Additional Paid-in Capital accounts, respectively, are A) $2,960,000 and $1,000,000. B) $3,000,000 and $960,000. C) $3,000,000 and $1,040,000. D) $3,040,000 and $1,000,000.

Q: Transactions that do not involve the original issue of securities take place in _________. A. primary markets B. secondary markets C. over-the-counter markets D. institutional markets

Q: Which of the following conditions is TRUE for a profit -maximizing firm in a perfectly competitive industry?A) MR = TC B) ATC = AFC C) MR = MC D) MC = AVC

Q: You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account, and the firm does not pay any dividends.)A. $28.85B. $35.71C. $31.50D. $32.25

Q: MC = AVC and MC = ATC at points at whichA) the AVC and ATC curves are at their respective maximums.B) the AVC and ATC curves are at their respective minimums.C) the distance between the ATC and AVC curves is at its minimum. D) the distance between the ATC and AVC curves is at its maximum.

Q: You purchased 250 shares of common stock on margin for $25 per share. The initial margin is 65%, and the stock pays no dividend. Your rate of return would be __________ if you sell the stock at $32 per share. Ignore interest on margin. A. 35% B. 39% C. 43% D. 28%

Q: The focus of firm decisions in the short run is primarily onA) variable inputs. B) capital investment. C) plant size. D) economies of scale.

Q: You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. You will get a margin call if the stock drops below ________. (Assume the stock pays no dividends, and ignore interest on the margin loan.)A. $26.55B. $35.71C. $28.95D. $30.77

Q: On January 1, 2011, Pardy Corporation acquired a 70% interest in the common stock of Salter Corporation for $7,000,000 when Salter's stockholders' equity was as follows:10% cumulative, nonparticipating preferred stock,$100 par, with a $105 liquidation preference,callable at $110 $ 1,000,000Common stock, $10 par value 6,000,000Additional paid-in capital 1,500,000Retained earnings 2,500,000Total stockholders' equity $11,000,000There were no preferred dividends in arrears on January 1, 2011. There are no book value/fair value differentials.Assume Salter's net income for 2011 is $220,000. No dividends are declared or paid in 2011. What is the change in Pardy's Investment in Salter for the year ending December 31, 2011?A) $ 84,000B) $119,000C) $154,000D) $189,000

Q: The characteristic of limited liability enables corporations toA) avoid taxes on some of their profits. B) exist even when owners die. C) raise large amounts of financial capital. D) start up and dissolve easily.

Q: You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. If you want to limit your loss to $2,500, you should place a stop-buy order at ____. A. $37.50 B. $62.50 C. $56.25 D. $59.75

Q: If an individualʹs utility from consuming two goods increases, then there must beA) a downward rotation of the individualʹs indifference curve. B) an inward rotation of the individualʹs indifference curve.C) an outward shift of the individualʹs indifference curve. D) in inward shift of the individualʹs indifference curve.

Q: You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible gain, ignoring transactions cost? A. $50 B. $150 C. $10,000 D. unlimited

Q: As an individual consumes more of a particular commodity, the total level of utility derived from that consumption willA) increase at an increasing rate. B) increase at a decreasing rate. C) increase at a constant rate. D) remain constant.

Q: You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible loss? A. $50 B. $150 C. $10,000 D. unlimited

Q: A subsidiary has dilutive securities outstanding that include convertible bonds payable. The bonds are convertible into the parent's common stock. When calculating consolidated diluted earnings per share, the convertible bonds will affect A) the numerator of consolidated diluted EPS only. B) the denominator of consolidated diluted EPS only. C) the numerator and denominator of consolidated diluted EPS. D) None of the above will be affected.

Q: When two goods are unrelated, A) the demands for both goods will be inelastic. B) cross price elasticity of demand will be 0. C) cross price elasticity of demand will be negative. D) cross price elasticity of demand will be positive.

Q: You sold short 300 shares of common stock at $30 per share. The initial margin is 50%. You must put up _________. A. $4,500 B. $6,000 C. $9,000 D. $10,000

Q: The value of the absolute price elasticity of demand for good X is 4. The absolute price elasticity for good Y is 1. Which goodʹs quantity demanded is more responsive to a change in price?A) Good X. B) Good Y.C) They are equally responsive. D) Not enough information is given.

Q: Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.A. $20,000B. $12,000C. $8,000D. $15,000

Q: Quantity of Clean Air (%)Marginal Cost ($)Marginal Benefit ($)010,000100,0002525,00050,0005037,50037,5007575,00025,000100Infinite0The above table shows marginal costs and marginal benefits of clean air in a particular industrial area. In the table, when the quantity of clean air is at 75 percent,A) the quantity of polluted air is 75 percent.B) the marginal benefit of clean air exceeds the marginal cost.C) the marginal benefit of clean air is less than the marginal cost. D) the quantity of clean air is optimal.

Q: What happened to the effective spread on trades when the SEC allowed the minimum tick size to move from one-eighth of a dollar to one-sixteenth of a dollar in 1997 and from one-sixteenth of a dollar to one cent in 2001? A. The effective spread increased in 1997 but decreased in 2001. B. The effective spread increased in both cases. C. The effective spread decreased in 1997 but increased in 2001. D. The effective spread decreased in both cases.

Q: The incidence of absolute poverty is reduced by A) annual recalculations of the poverty line. B) government welfare programs.C) economic growth.D) the size of the budget deficit.

Q: According to SEC Rule 415 regarding shelf registration, firms can gradually sell securities to the public for __________ following initial registration. A. 1 year B. 2 years C. 3 years D. 4 years

Q: On January 1, 2011, Adam Corporation purchased a 90% interest in Rodney Corporation. On January 1, 2011, Rodney Corporation purchased an 80% interest in Ben Corporation.In all investment acquisitions, the cost of the interest was equal to the book value of the interest and the fair value of the interest. The following information is available for 2011:Purchase Cost Net Income(Net Loss) for 2011Adam $1,000,000 $200,000Rodney $10,000 ($10,000)Ben $15,000 $50,000The separate net incomes do not include investment income.Required:1. What is controlling interest share of consolidated net income for 2011?2. What is noncontrolling interest shares of consolidated net income for 2011?

Q: A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at whichA) MFC = MRPm.B) a perfectly elastic labor supply = MRP.C) a perfectly inelastic labor supply = perfectly inelastic labor demand. D) where supply of labor = demand for labor.

Q: You find that the bid and ask prices for a stock are $10.25 and $10.30, respectively. If you purchase or sell the stock, you must pay a flat commission of $25. If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars? A. $50 B. $25 C. $30 D. $55

Q: On January 1, 2011, Paul Corporation acquired a 90% interest in Satorius Company for $360,000 when Satorius' stockholders' equity was $400,000; with Common stock $200,000 and Retained earnings $200,000.On January 1, 2011, Satorius Company purchased a 10% interest in Paul Company for $90,000 when Paul's total stockholders' equity was $900,000; with Common stock $500,000 and Retained earnings $400,000.The following data was available for the year ending December 31, 2011:Paul Company Satorius CompanyNet income $150,000 $130,000Dividends 0 0Use the conventional approach to account for the mutually-held stock. Assume there were no book value/fair value differentials for each investment. The separate net incomes do not include investment income.Required:1. Prepare the journal entry for Paul on January 1, 2011.2. Prepare the journal entry for Satorius on January 1, 2011.3. Prepare the journal entry to record the constructive retirement of 10% of Paul's outstanding stock due to Satorius' purchase of Paul's stock.4. Determine the incomes of Paul and Satorius on a consolidated basis with mutual income for 2011 using simultaneous equations.5. What is controlling interest share of consolidated net income and noncontrolling interest shares for 2011?6. What is consolidated net income?

Q: Consider the following limit order book of a specialist. The last trade in the stock occurred at a price of $40. If a market buy order for 100 shares comes in, at what price will it be filled?A. $39.75B. $40.25C. $40.375D. $40.25 or less

Q: Samuel Gompers served as the first leader of theA) Knights of Labor. B) American Federation of Labor. C) Congress of Industrial Organizations. D) United Steel Workers.

Q: On January 1, 2011, Klode Corporation acquired an 80% interest in Savy Company for $400,000 when Savy's stockholders' equity was $500,000; with Common stock $400,000 and Retained earnings $100,000.On January 1, 2011, Savy purchased a 10% interest in Klode for $50,000 when Klode's total stockholders' equity was $500,000; with Common stock $400,000 and Retained earnings $100,000.The following data was available for the year ending December 31, 2011:Klode Company Savy CompanyNet income $70,000 $50,000Dividends 0 0Use the conventional approach to account for the mutually-held stock. Assume there were no book value/fair value differentials for each investment. The separate net incomes do not include investment income.Required:1. Prepare the journal entry for Klode on January 1, 2011.2. Prepare the journal entry for Savy on January 1, 2011.3. Prepare the journal entry to record the constructive retirement of 10% of Klode's outstanding stock due to Savy's purchase of Klode's stock.4. Determine the incomes of Klode and Savy on a consolidated basis with mutual income for 2011 using simultaneous equations.5. What is controlling interest share of consolidated net income and noncontrolling interest shares for 2011?

Q: If labor is 80 percent of total costs in industry A and 20 percent in industry B, then other things equal, we would expect the elasticity of demand for labor to beA) greater in industry A than in industry B. B) greater in industry B than in industry A. C) the same in both industries.D) uncertain since no general relationship exists between cost shares and elasticities.

Q: You purchased XYZ stock at $50 per share. The stock is currently selling at $65. Your gains could be protected by placing a _________. A. limit buy order B. limit sell order C. market order D. stop-loss order

Q: On January 1, 2011, Peabody Corporation acquired a 90% interest in Salisbury Company for $270,000 when Salisbury's stockholders' equity was $300,000; with Common stock $200,000 and Retained earnings $100,000.On January 1, 2011, Salisbury purchased a 10% interest in Peabody for $70,000 when Peabody's total stockholders' equity was $700,000; with Common stock $500,000 and Retained earnings $200,000.The following data was available for the year ending December 31, 2011:Peabody Company Salisbury CompanyNet income $50,000 $30,000Dividends 0 0Use the conventional approach to account for the mutually-held stock. Assume there were no book value/fair value differentials for each investment. The separate net incomes do not include investment income.Required:1.Prepare the journal entry for Peabody on January 1, 2011.2. Prepare the journal entry for Salisbury on January 1, 2011.3. Prepare the journal entry to record the constructive retirement of 10% of Peabody's outstanding stock due to Salisbury's purchase of Peabody's stock.4. Determine the incomes of Peabody and Salisbury on a consolidated basis with mutual income for 2011 using simultaneous equations.5. What is controlling interest share of consolidated net income and noncontrolling interest shares for 2011?

Q: Which of the following is (are) true about dark pools? I. They allow anonymity in trading. II. They often involve large blocks of stocks. III. Trades made through them might not be reported. A. I and II only B. II and III only C. I and III only D. I, II, and III

Q: A major shortcoming of the Sherman Act was thatA) when it was passed, there were no violations, so the Supreme Court ruled it unnecessary.B) it failed to explicitly state which specific activities were illegal. C) violators of the Act were forced out of business.D) it was not enforced by the courts.

Q: On January 1, 2011, Singh Company acquired an 80 percent interest in Gonzalez Company for $300,000. On January 1, 2011, Gonzalez's total stockholders' equity was $375,000. The fair value and book value of Gonzalez's individual assets and liabilities were equal.On January 2, 2011, Gonzalez Company acquired a 10 percent interest in Singh Company for $50,000. On January 2, 2011, Singh's total stockholders' equity was $500,000. The fair value and book value of Singh's individual assets and liabilities were equal.For the year ending December 31, 2011, the following data is available:Net income DividendsSingh Company $40,000 $0Gonzalez Company $10,000 $0The treasury stock method is used to account for the mutual stock holdings between Singh and Gonzalez. The separate net incomes do not include investment income. A partial consolidating worksheet is below.Required:Prepare the elimination entries for the year ending December 31, 2011.Do not enter them onto the worksheet. Instead, list them below.

Q: Strategic dependence is found inA) monopoly markets. B) oligopolistic markets.C) monopolistic competitive markets. D) perfect competitive markets.

Q: The cost of buying and selling a stock includes: I. Broker's commissions II. Dealer's bid-asked spread III. Price concessions that investors may be forced to make A. I and II only B. II and III only C. I and III only D. I, II, and III

Q: If the United Statesʹ largest bakery buys an agricultural firm that specializes in growing wheat, we would have an example ofA) a horizontal merger. B) a vertical merger.C) a monopoly. D) excessive product differentiation.

Q: On January 1, 2011, Wrobel Company acquired a 90 percent interest in Sally Company for $270,000. On January 1, 2011, Sally's total stockholders' equity was $300,000. The fair value and book value of Sally's individual assets and liabilities were equal.On January 2, 2011, Sally Company acquired a 10 percent interest in Wrobel Company for $70,000. On January 2, 2011, Wrobel's total stockholders' equity was $700,000. The fair value and book value of Wrobel's individual assets and liabilities were equal.For the year ending December 31, 2011, the following data is available:Net income DividendsWrobel Company $50,000 $0Sally Company $30,000 $0The treasury stock method is used to account for the mutual stock holdings between Wrobel and Sally. The separate net incomes do not include investment income.A partial working paper is available for the year ending December 31, 2011.Required:Prepare the elimination entries for the year ending December 31, 2011.Do not enter them onto the worksheet. Instead, list them below.

Q: The NYSE has lost market share to ECNs in recent years. Part of the NYSE's response to the growth of ECNs has been to: I. Purchase Archipelago, a major ECN, and rename it NYSE Arca II. Enable automatic trade execution through its new Market Center III. Impose a tighter limit on bid-ask spreads A. I only B. II and III only C. I and II only D. I, II, and III

Q: The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for dealers to cover expenses and make a profit D. lack of trading in thin markets

Q: In the above figure, total cost for this profit-maximizing monopolistically competitive firm isA) $91,000. B) $50,000. C) $70,000. D) $72,000.

Q: The difference between the price at which a dealer is willing to buy and the price at which a dealer is willing to sell is called the _________. A. market spread B. bid-ask spread C. bid-ask gap D. market variation

Q: If a monopolist produces to a point at which marginal revenue is greater than marginal cost thenA) profits are being maximized.B) profits will always be negative.C) the incremental cost of producing the last unit exceeds the incremental revenue.D) the incremental cost of producing the last unit is less than the incremental revenue.

Q: Padhy Corporation owns 80% of Abrams Corporation, Abrams Corporation owns 60% of Bacud Corporation, and Bacud Corporation owns 10% of Abrams Corporation. The separate net incomes (excluding investment income) of Padhy, Abrams, and Bacud are $300,000, $100,000, and $80,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:Calculate the controlling interest share of consolidated net income and the noncontrolling interest shares for Padhy Corporation and its subsidiaries. Use the conventional method for your solution.

Q: The _________ price is the price at which a dealer is willing to sell a security. A. bid B. ask C. clearing D. settlement

Q: In the long run, a perfect competitorA) earns positive profits but will not make losses. B) earns positive economic profits.C) earns zero economic profits.D) produces at its shutdown point.

Q: Separate earnings and investment percentages for three affiliates for 2011 are as follows:Separate Percentage Interest Percentage InterestEarnings in Acres in BainPalace Company $450,000 80%Acres Inc 200,000 70%Bain Corporation 160,000 10%Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings do not include investment income.Required:Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.

Q: When demand is perfectly elastic, marginal revenue isA) zero. B) equal to price. C) declining. D) increasing.

Q: Paine Corporation owns 90% of Achan Corporation, Achan Corporation owns 85% of Badge Corporation, and Badge Corporation owns 5% of Achan Corporation. The separate net incomes (excluding investment income) of Paine, Achan, and Badge are $400,000, $160,000, and $220,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:Calculate revised net incomes for Paine, Achan, and Badge by using the conventional method.Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.

Q: Approximately __________ of trades involving shares issued by firms listed on the New York Stock Exchange actually take place on the New York Stock Exchange. A. 50% B. 25% C. 60% D. 75%

Q: The distance between the TC and the TVC curveA) is constant. B) decreases as output increases.C) increases as output increases. D) is the MC curve.

Q: Paco Corporation owns 90% of Aber Corporation, Aber Corporation owns 85% of Back Corporation, and Back Corporation owns 5% of Aber Corporation. The separate net incomes (excluding investment income) of Paco, Aber, and Back are $100,000, $40,000, and $55,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:1.Calculate revised net incomes for Paco, Aber, and Back by using the conventional method.2.Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.

Q: The NYSE Hybrid Market allows _____. A. individuals to send orders directly to a specialist B. individuals to send orders directly to an electronic system C. brokers to send orders directly to a specialist D. brokers to send orders either to an electronic system or to a specialist

Q: Which of the following is a short-run decision for a firm? A) Downsizing the firmʹs manufacturing plant B) Expanding the firmʹs distribution network of long -haul freight trucks and smaller delivery trucks. C) Firing workers D) Investing in a new addition to the firmʹs manufacturing plant

Q: On January 1, 2011 Paki Inc. bought 75% interest in Adam Corporation. At the time of purchase, Adam owned 80% of Baird Company. In all acquisitions, the book value equals the fair value, which equals the acquisition cost. Separate earnings (loss) (excluding investment income) for the three affiliates for 2011 are as follows:SeparateEarnings (Loss) DividendsPaki Company $400,000 $150,000Adam Inc (50,000) 90,000Baird Company 100,000 35,000Required:Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2011.

Q: The fully automated trade-execution system installed on the NYSE is called _____. A. FAX B. Direct + C. NASDAQ D. SUPERDOT