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Davis Company is formed with $5,000 in equity and is expected to generate the following cash flows (all occurring at the end of one year):

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Davis Company is formed with $5,000 in equity and is expected to generate the following cash flows (all occurring at the end of one year): ( Determine if the equity is high enough to absorb expected losses assuming the appropriate discount rate is 6%. Show your work to receive credit. (i) Identify the three characteristics of a variable interest entity (VIE). (ii) If Victor Company is a variable interest entity, identify the factors that determine which entity is the primary beneficiary that must consolidate Victor

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