Question: I am working on my assignment and met these questions, help. A Ltd paid f400,000 for 200,000 shares in B Ltd. B Ltd's share capital




I am working on my assignment and met these questions, help.
![with this purchase. E25,000 B (100,000 E200,000 E275,000 [2] Filton plc has](https://s3.amazonaws.com/si.experts.images/answers/2024/06/6675a590a1205_1286675a5903a719.jpg)



A Ltd paid f400,000 for 200,000 shares in B Ltd. B Ltd's share capital was 250,000 f1 ordinary shares, and at the time of the share purchase it had reserves of f125,000. Calculate the goodwill associated with this purchase. E25,000 B (100,000 E200,000 E275,000 [2] Filton plc has shares in three companies. It has a 35% holding in Worthington Lid and has a right to appoint 6 of the 10 directors. It has a 55% holding in Bartley Ltd and has used its voting rights to appoint all of its directors. It has a 25% holding in Dudley Led and has a right to appoint 3 of the 10 directors. Which are subsidiaries of Filton plc? Dudley Ltd, Worthington Lid and Bartley Ltd Worthington Ltd and Bartley Ltd OnP Bartley Ltd only Dudley Ltd only [2] Which of the following items does NOT occur in the revenue account of insurance company accounts? earned premiums claims incurred investment income on investments relating to shareholders' funds realised capital gains on investments held to cover insurance liabilities [2] Describe how non-controlling interests are treated in a consolidated statement of financial position. Explain why they are treated in this way. [5]5 Company A takes over Company B. Immediately before the take-over, Company B's statement of financial position appeared as follows: Company B EOOOs Non-current assets 240 Current assets 190 Assets 430 Ordinary share capital (10p shares) 60 Reserves 250 Long-term debt 120 Share capital and liabilities 430 The terms of the offer made to B's shareholders for every nine shares held in B were: 3 shares (50p market value each) in A plus 90p cash plus 2 f2 convertible preference shares in A (valued at par). The terms of the conversion on the $2 preference shares are 5 ordinary shares for each $2 preference share. Calculate the goodwill which will initially appear in A's consolidated accounts as a result of the offer assuming conversion does not take place (ii) full conversion. [5]1 Explain why the link function g (#) =log/ is appropriate for the Poisson distribution by considering the range of values that it results in #; taking. 2 Explain the difference between the two types of covariate: a variable and a factor. 3 (1) A random variable Y has density of exponential family form: tyle fly) = exp yo-b(e) + cly.$) alg) State the mean and variance of Y in terms of b(8) and its derivatives and old) . [1] (Wi) (a) Show that an exponentially distributed random variable with mean / has a density that can be written in the above form. (b) Determine the natural parameter and the variance function. [3] [Total 4] 4 An insurer wishes to use a generalised linear model to analyse the claim numbers on its motor tyle portfolio. It has collected the following data on claim numbers y, , / =1, 2,..., 35 from three different classes of policy: Class I H 2 0 2 2 1 Class II 0 0 Class III O 0 0 0 0 C 1 0 0 0 0 0 0 O For these data values: 10 15 35 Evi = 11 vi =3 yi =4 1= 1 i=11 i=16 The company wishes to use a Poisson model to analyse these data. (1) Show that the Poisson distribution is a member of the exponential family of distributions. [2](ii) The insurer decides to use a model (Model A) for which: a 1 =1, 2, ..., 10 log A i =11, 12, ..., 15 i =16, 17, .., 35 where #; is the mean of the relevant Poisson distribution. Derive the likelihood function for this model, and hence find the maximum likelihood estimates for a , / and y . [4] (iii) The insurer now analyses the simpler model log /; = o , for all policies. Calculate the maximum likelihood estimate for o under this model (Model B). (2] (iv) Show that the scaled deviance for Model A is 24.93, and calculate the scaled deviance for Model B. (5] It can be assumed that f(y) = ylogy is equal to zero when y= 0. (v) Compare Model A directly with Model B, by calculating an appropriate test statistic. [2] [Total 15] 5 In the context of Generalised Linear Models, consider the exponential distribution with density yle function f(x), where: f(x) =_ex/H ( x >0) . (1) Show that f(x) can be written in the form of the exponential family of distributions. [1] (ii) Show that the canonical link function, 0, is given by 0=-1 [1] (mii) Determine the variance function and the dispersion parameter. [3] [Total 5]
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