Answer:
C. Jones may not join the board because the rules prohibit all firm professionals from serving as a director of a client.
Answer:
d. both of them could be telling the truth if the labor force grew faster than employment
Explanation:
The president claims that more people are working, this is a nominal approach, if 5000 people were working at the beginning of his term and now, which is ending it has 5001 people working his statement will be true.
The senator makes a more economic approach, while there are more people employement, we must remember than the labor force grows each day, as more kids finish their studies and jump right into the search of jobs.
So, both statement can be true, example
at beginning
600/6,000 = 10& unemployement
6,000 labor force - 600 unemployee = 5,400 working
leaving the office:
1,100/10,000 = 11% unemployement
10,000 labor force - 1,100 unemployee = 8,900 working
UNder this scenario, both are true.
Answer:
The answer is option B. For a levered firm, flotation costs should <u>be spread over the life of a project, thereby reducing the cash flows for each year of the project.</u>
Explanation:
When a company’s securities are listed on a public exchange, there is a general saying that securities are floated on the exchange. That is how the name flotation costs came about.
Flotation is actually the costs incurred by a company in issuing its securities to public. it is also called issuance costs.
Examples of Flotation costs include charges paid to the investment bankers, lawyers, accountants, registration fees of the securities regulator and the exchange on which the issue is to be listed.
Flotation cost would vary based on several factors, such as company’s size, issue size, issue type (debt vs equity),
In summary, Flotation costs are the cost a company incurs to issue new stock making new equity cost more than existing ones.
Business analysts argue that flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.
It is based on this premise that i chose option B, which states that flotation costs be spread over the life of a project thereby reducing the cash flows for each year of the project at levered firms.
I would recommend a savings account
Answer:
C. What the program will ultimately cost the federal government
Explanation:
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was an attempt to make improvements or amendments to the Social Security Act. It radically changed the playing field for private plans participating in the Medicare program by substantially raising monthly payment rates in an effort to stabilize the market and reverse the decline in benefit generosity. It also provided for voluntary prescription drugs under the medicare program. However, the utilization and cost of the program skyrocketed as soon as the funding source was established. It has remained unknown what the program will ultimately cost the federal government, no wonder the current administration under Trump wants to turn it upside down.
