Answer:
Detailed solution is given in the tabular form below:
Answer:
a. 10.60%
b. 3.53%
Explanation:
a. Calculate the yield on the repo if it has a 5-day maturity.
Profit = $34,000,000 − $33,950,000 = $50,000
Using 360 days a year, we have:
Yield on the repo = ($50,000/$33,950,000)*(360/5) = 0.1060, or 10.60%
b. Calculate the yield on the repo if it has a 15-day maturity.
Using 360 days a year also, we have:
Yield on the repo = ($50,000/$33,950,000)*(360/15) = 0.0353, or 3.53%
A corn farmer is considered a free rider if he chooses not to join the national interest group his fellow farmers created, yet still reaps the benefits of the tax incentives the group lobbied for and won.
The free rider problem is an economic concept of a market failure that occurs when people or individuals are benefiting from resources, goods or services that they do not pay for. In our case, the corn farmer is benefiting from the tax incentives the group lobbied for, yet he or she made zero input or effort to contribute to the groups agenda in getting tax incentives. <span />
The one that has limited liability for its owners, but passes income through to its investors and avoids double taxation is option C. S Corporation. Read below about S Corporation.
<h3>What is S Corporation?</h3>
A variation on the standard corporation model is the S corporation. An S corporation passes its income through to its owners, so that the entity itself does not pay income taxes. The owners report the income on their tax returns, thereby avoiding the double taxation that arises in a regular C corporation.
Therefore, the correct answer is as given above
learn more about S corporation: brainly.com/question/13187927
#SPJ1
The complete question goes thus:
Which of the following has limited liability for its owners, but passes income through to its investors and avoids double taxation
A. C Corporation
B. Partnership
C. S Corporation
D. Types of Business Entities
Answer:
Cash flow provided from operating activities 12,700
Explanation:
Net Income: 10,500
Depreciation expense 5,500 a
Adjusted income 16,000
Change in working capital
↓Account Receivable 3,500 b
↑Inventory (7,500) c
↑Salaries payable 700 d
Total Change in working capital (3,300)
Cash flow provided from operating activities 12,700
<u>Notes:</u>
a The depreciation is a non-monetary concept it has no impact in cash. It is removed.
b The decrease the AR means cash was collected, therefore the cash increase
c The increase in inventory represents cash being used to purchase that inventory. Cash decreased
d the salaries payable represent the delay of cash disbursement, it increases cash.
