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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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After several quarters of a severe recession, explain why there might be a decrease in the official unemployment rate. Businesse
Tpy6a [65]

Answer:

Businesses begin to hire again.

Explanation:

Economic recovery is <u>the phase of the economy that follows a recession, during which an economy regains and exceeds peak employment</u> and output levels prior to downturn.

A recovery period is <u>characterized mainly by</u> high levels of growth in real gross domestic product, <u>employment</u>, corporate profits, and other indicators.

Therefore as given in the scenario, ''after several quarters of a severe recession, the reason there might be <u>a decrease in the official unemployment rate is because of growth in employment as businesses begin to hire again.</u>

7 0
3 years ago
Joe and Rich are both considering investing in a project that costs $25,500 and is expected to produce cash inflows of $15,800 i
miv72 [106K]

Both Joe and Rich should accept this project.

D) Both Joe and Rich

<u>Explanation:</u>

NPVJoe= $25,500 + $15,800 / 1.085 + $15,300 / 1.085^2

NPVJoe= $2,058.88

NPVRich= –$25,500 + $15,800 / 1.125 + $15,300 / 1.125^2

NPVRich= $633.33

Here Joe and Rich both invested a total amount of $25,500 and they are expected to get cash inflows of $15,800 and $15,300 in the year 1 and year 2 respectively they both has their own different rates of return i.e. 8.5% and 12.5% so we can calculate the net principle value of Joe is $2,058.88 and that of Rich is $633.33.

8 0
4 years ago
When Coca-Cola saw the growth of the bottled water category, they launched Dasani, its brand of bottled water. Which brand devel
kolbaska11 [484]

Answer: New brand.

Explanation:

The Coca-Cola company launched it's new brand of bottled water into the market. A brand is a name given to a particular product/service by which it can easily be identified.The Disani water is a new brand introduced into the market by which the Coca-Cola water products would be identified.

3 0
3 years ago
Breaking up a web page into its components to identify worthy words/terms and indexing them using a set of rules is called
stiks02 [169]

This describes parsing the documents, which means breaking them down into words and data that can be searched, stored, or used in other ways to improve the site.

8 0
3 years ago
Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information: the f
levacccp [35]

Answer:

Explanation:

First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;

Maturity of the bond : N = 20

Annual coupon payment; PMT = 8%*1000 = 80

Face value; FV = 1000

Price of the bond ; PV = -1,050

then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)

Next, find the cost of equity (rE) using CAPM;

CAPM; r = risk free + beta (Market risk premium)

rE = 0.0450 + 1.20(0.0550)

rE = 0.0450 + 0.066

= 0.111 or 11.1%

Next, WACC formula = wE*rE + wD*rD(1-tax) whereby;

w = weight of..

rD= pretax cost of debt

WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]

WACC = 0.07215 + 0.015771

= 0.0879

Therefore, WACC = 8.79%

3 0
4 years ago
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