Answer:
The answer is true.
Explanation:
Preference or preferred shareholders are synonymous to lenders to a business or company. Preferred shares are like debt to a business. They possess the characteristics of both debt and equity and in the case of liquidation, they have to be settled first. Common shareholders are the last shareholders to settled.
Answer:
The answer is: This tax follows: "The benefits-received principle"
Explanation:
There are two principles of tax fairness raised in the question:
+ The ability to pay principles: stating that people should pay amount of tax in accordance with the level of wealth and income they possess.
+ The benefits-received principles: stating that the amount of tax a taxpayer has to pay should be in accordance with the level of consumption of government's goods and services.
By re-visiting two concepts above, we come up with "The benefits-received principle" as the answer.
It is because the resources dedicated to building public clinics specializing in helping alcoholics reduce their alcohol consumption is funded from liquor consumers which is the majority group of people which will consume the services of these clinics.
Answer:
70,000 units
Explanation:
Selling price per unit = $30
Variable cost per unit = $14.60
Contribution margin per unit = $30 - $14.60 = $15.40
Fixed cost = $1,078,000
Break-even point in units = Fixed cost ÷ Contribution margin per unit = $1,078,000 ÷ $15.40 = 70,000 units
Therefore, break-even point in units would 70,000 units.
Answer:
6.26%
Explanation:
The yield to call is the rate of return earned by bondholders over the 5-year period before the bonds were called.
It can be determined using excel rate function as well as financial calculator as shown thus:
=rate(nper,pmt,-pv,fv)
nper=the period between bond issuance and the call in years=5
pmt=annual coupon=face value*coupon rate=$1000*8%=80
pv=the initial purchase price=-1132
fv=the price at which the bonds were called after 5 years=1080
=rate(5,80,-1132,1080)=6.26%
Financial calculator:
N=5
PMT=80
PV=-1132
FV=1080
CPT I/Y=6.26%
