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aleksandr82 [10.1K]
3 years ago
9

To make, sell, and distribute candy that Ethan has developed, he incorporates his business and designates his sister and brother

as corporate officers. He sells them shares of stock. No shares are offered to the public. The three agree that if any one of them decides to leave the business, the others will buy that person's stock. Ethan's corporation is most likely:
a. a benefit corporation.
b. a close corporation.
c. an S corporation.
d. an alien corporation.
Business
1 answer:
Vedmedyk [2.9K]3 years ago
3 0

Answer: a close corporation

           

Explanation: In simple words, a close corporation refers to a corporation the number of shareholders of which does not exceed more than the statutory limit of 35 and is not a public corporation.

In the given case, Ethan has distributed the shares of his organisation to his brother and sister. He has made provisions under no outsider will be able to have the shares of his company.

Hence from the above we can conclude that his corporation is a closed corporation.

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malfutka [58]

Answer:

d.borrow $375,000

Explanation:

Given that

Amount available to invest = $500,000

Risk free rate = 8%

Return on the risky portfolio = 16%

Now the computation is shown below:

The interest rate should be

Interest amount on borrowings = $375,000 × 8% = $30,000

So, the total amount available to invest is

= $500,000 + $375,000

= $875,000

Now the total inflow is

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The $140,000 is come from

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So the 22% is come from

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6 0
4 years ago
cba corp is worth 15 million as a standalone firm. abc corp has offered 350000 shares valued at 50 each to acquire cba. after th
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Answer:

$.75 million

Explanation:

Calculation for what is the cost of the merger

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3 years ago
Bonds are a popular source of financing because a.financial analysts tend to downgrade a company that has raised large amounts o
just olya [345]

Answer:D. Bond interest expenses is deductible for tax purposes while dividend paid on stocks are not.

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This stand as an advantage for bonds where tax is only deductible after meeting the total interest expenses.

6 0
4 years ago
Assume the demand function for basketballs is given by QD = 150 −3P + 0.1I, where P = price of a basketball, and I = average inc
TEA [102]

Answer: (1) Equilibrium price = 60 and Equilibrium quantity = 120, when I = $1500.

(2)  Equilibrium price = 54 and Equilibrium quantity = 108, when I = $1200.

Explanation:

(1) When Average income (I) = $1500

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1500 = 2p

5p = 300

p = \frac{300}{5}

p = 60

q = 2p ⇒ 2 × 60 = 120

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

(2) If 20% income tax is introduced then Average income (I) = $1500 - 20% of  $1500 ⇒ $1500 - $300 = $1200

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1200 = 2p

5p = 270

p = \frac{270}{5}

p = 54

q = 2p ⇒ 2 × 54 = 108

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

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