14. [Minority interest] The following data were obtained from the 1999 Annual Report of Nucor Corporation [NUE], which has a 51%-owned consolidated subsidiary. Minority interest at December 31, 1998 Minority interest at December 31, 1999 Distribution to minority interest (1999 financing cash flow). $282,396.469 280,871.235 (87,176,880)

a. Nucor's operating cash flow reported minority interest for 1999. From the data given, compute that amount and explain its significance.

b. Using the data provided and the result of part

a, compute the net profit and return on average equity of the subsidiary for 1999.

c. Discuss the conditions under which the proportionate consol- idation method would be more appropriate for this sub- sidiary.

d. Discuss the advantages and disadvantages of the proportionate consolidation method in this case from the point of view of: (i) Nucor's management (ii) A financial analyst