Answer:
the income that should be recognized is $25,000
Explanation:
The computation of the income that should Johson recognized is shown below:
Income To be recognized is
= Borrowings amount - Basis of land
= $45000 - $20000
= $25,000
hence, the income that should be recognized is $25,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
The answer is 11.44%
Explanation:
Solution
Given that:
Glass maker has a pre-merger of =$5 debt
Equity =$10
The rate on debt =11%
The risk free rate =6%
Tax rate =40%
The levered beta is =1.36
Equity risk premium is= 4%.
Now,
the next step is to find discount to use for Glass maker free cash flows and interest tax savings
Cost of equity (Ke) = Risk free return + Beta ( Market return - Risk free return )
= 6% +1.36( 10%-6%)
=11.44%
Therefore, the rate to be used to discount free cash flows and interest tax savings is 11.44%
Ed is a debtor. Financial Loans, Inc., and the government are Ed’s creditors. For these parties, a bankruptcy proceeding under Chapter 13 could be initiated by the filing of a petition by (A) Ed alone or by his creditors jointly.
Here are the following choices:
<span>A. Ed alone or by his creditors jointly.
B. Ed only.
C. Financial Loans only.
D. the government only.</span>
Answer:
b.moral hazard
Explanation:
If a person borrow from bank to buy car but actually he borrow to pay lottery. in this case the person will face Moral Hazards.
