An event that affects all foreign firms doing business in a country or region is called a micropolitical risk event

The common stock of Cranberry, Inc. is selling for $26.75 on the open market. A dividend of $3.68 is expected to be distributed, and the growth rate of this company is estimated to be 5.5%

If Richard Dean, an average investor, is considering purchasing this stock at the market price, what is his expected rate of return?

Pink Partners holds an available-for-sale equity investment with a carrying value of $40,000. The current fair value of the investment is $24,000. There is objective evidence of this impairment and the impairment is other-than-temporary. Should an impairment loss be recorded? How much of this loss should be classified in net income and how much should be classified in other comprehensive income?

A) Yes, the $16,000 impairment loss should be reported as part of net income. B) No, an impairment loss should not be recorded because this is an equity investment. C) Yes, the $16,000 impairment loss should be split evenly between net income and other comprehensive income. D) Yes, there is an impairment loss of $16,000. However, there is not enough information to determine if this loss should be recorded in Net Income or as part of Other Comprehensive Income.