Answer:
It is E
Explanation:
Each different project has different risk profile i.e business risk and finance risk. At such , these risks must be adjusted for to produce project specific cost of capital.
If a company is investing in another line of business with a different risk profile to the existing business, this will have an impact on the WACC to be used to assess the viability of the new project.
Likewise, if the new project is being financed with a mixed of capital different from the current finance structure, such will equally impact on the WACC to be used.
Answer:
Legal
Explanation:
Legal risk is a risk that financial or reputation loss may arise from lack of awareness or misinterpretation of the laws and regulations that apply to a business. Different countries are governed by different laws and regulations. Therefore, there will be a legal risk in operating a business in different foreign countries.
Answer: The correct answer is option (A)
Explanation: Activity rates is calculated by dividing the budgeted activity cost by the total activity-base usage.
Activity Rate = (Budgeted Activity cost) ÷ ( total activity base usage)
Answer:
Master limited partnership.
Explanation:
Master limited partnership is also called publicly traded partnership and is a publicly traded entity that is taxed as a partnership.
There is a combination of tax advantage of a partnership and the ability of the form to get funding by issuing securities.
To get tax benefits the business should generate at least 90% of their profit from qualified processes such as processing, production, storage, transportation, and real property rents.
Beck was given several hundred shares of stock in the firm, and was officially made a partner. The firm's accountant explained that the company paid taxes the same way as regular partnerships, by passing the profits through to each partner. Beck could purchase more shares of the company on a public stock exchange, as long as someone was willing to sell his/her shares.
This is a master limited partnership.
