Answer:
MAROON Inc
Net Unrelated Business Income
Lease Income :
Building $100,000
Equipment <u> 9,000</u>
109,000
Rental expenses:
Building 40,000
Equipment <u> 4,000 </u> <u>(44,000)</u>
Net unrelated business income <u> 65,000</u>
Explanation:
It is used only when the product to be dispensed is a liquid.
Answer:
A. product differentiation
Explanation:
Product differentiation is making a good or service different from that of compettitors in order to attract customers.
Equilibrium price is the price at which the demand curve is equal to the supply curve.
a monopsony is where there's only one buyer in the market.
A perfectly competitive market is when there are many buyers and sellers of homogenous goods and services.
I hope my answer helps you
Answer with explanation:
Requirement 1: The bondholders are interested in the firm's operation to the extent that they will be paid principal and the interest payments. On the other hand, the equity investors are interested in long term company success because of their ownership in the company. The company pays them dividends which is subjected to company's decision whether they should pay or not and what dividend per share must be.
Requirement 2: Taxes are the first thing that the company has to pay to the government, thereafter comes the interest payments on loan, thereafter comes the dividend to preferred shareholders and at the end if the cash is still left then the company will pay the ordinary shareholders. Hence the ordinary shareholders bears the most risk and thus they require higher rate of return on higher risk.
Requirement 3: There are two reasons why I would recommend debt financing and this is as under:
- Tax benefits as the debt is less expensive than preferred shares and ordinary shares.
- According to M & M proposition 2, the inclusion of debt finance in the capital structure reduces the Weighted Average Cost of Capital and thus increases the value of the company. Hence debt financing increases the value of the company.
