Answer:
Firm L's cost of equity is 13.2%
Explanation:
In order to calculate Firm L's cost of equity we would have to calculate the following formula:
Firm L's cost of equity=Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)
D/E = debt/equity
D/E = $200,000/$300,000
D/E=0.6666
Therefore, Firm L's cost of equity= 12%+0.6666*(12%-9%)*(1-0.4)
Firm L's cost of equity=13.2%
Firm L's cost of equity is 13.2%
Answer:
$4,021 two years ago
Explanation:
Given that
The Rate of interest is 10%
And as we know that
PV = FV × (1 + i)^(-n)
And
FV = PV ÷ (1 + i)^n
where,
PV = prsent value,
FV = future value ,
i = interest rate,
n = years
Now
a)
FV = $4,545 × (1.1)
= $4,999.5
b)
PV = $5,500 ÷ (1.1^-1)
= $5,000
c)
FV = $4,021 × (1.1^2)
= $4,865.41
d)
PV = $6,050 × (1.1^-2)
= $5,000
hence, the correct option is c. $4,021
It is wrongly written as $4,012
Answer:
Part - (a)
Since A constructively holds stock through her son and a prohibited interest within the 10 years of divestment, she will not receive a favorable treatment.
Part - (b)
The sale may qualify for redemption if A decides to become a creditor within a 10 years period. Creditors do not hold prohibited interest in corporations, typically because they hold no voting rights.
Part - (c)
The act of replacing, or office held by a family member, does not constitute a prohibited interest. Therefore: the sale should qualify.
Part - (d)
Accepting the stocks as gift would trigger a prohibited interest. The size of the gift and her son's shares and will nullify the 10 year rule.
Answer:
The answer is "68,788".
Explanation:
Net cash flow present value = immediate deposit + Annual lease payment present value
Net cash flow present value 
$400,000 equity will be the coverage provided for the account.
<h3>What is a joint account?</h3>
A joint account is just another saving account, but the difference is that it is shared between two people, i.e, two people are the owner of that account this is generally shared between two partners or a spouse.
The maximum bandwidth for a joint account is $500,000; but, a margin account only covers the equity, thus the debit balance is deducted from the market value. from deducting the market value of $1 million from the debit balance of $600,00 to leave $400,000 equity.
Learn more about the joint account, here:
brainly.com/question/23507729
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