Answer:
rate = 6.3235%
At a market rate of 6.3235% this will be  a fair deal
Explanation:
under perpetuities the principal is never redeem. the investor receive cash payment for an indefinite period of time
This means:
perpetuities  present value = C/r
where:
C= annual payment
r= rate
680,000 = 43,000/rate
43,000/680,000 = rate
0.06323529 = rate
rate = 6.3235%
 
        
             
        
        
        
Answer:
A. Number of sales people employed by the firm's major competitors.
Explanation:
A sales forecast is simply a process of evaluating future sales.  The number of sales people employed by a firms' competitor is not a factor to consider in developing a sales forecast. It has no influence in the actualization of a definitive sales forecast.
 
        
             
        
        
        
It is true that capital gains refer to profits from the sale of investments. 
        
             
        
        
        
Answer:
One share of this stock worth today if the required rate of return is 7.4 percent is $ 3.24
Explanation:
According to the details the dividend for the next 2 years = $1.80 a share and the required return is=7.40%.
Hence to calculate current price of stock we have to use the following formula:
current price= present value of future cash flows
current price=$1.80/1.074 + $1.80/1.074∧2
current price= $ 3.24
current price of stock is $ 3.24
 
        
             
        
        
        
Answer:
An S corporation.
Explanation:
The S corporation was formed by Congress, for use by small business owners, offering the best characteristics of both a C corporation and a partnership.
It has become the most popular business entity type in recent years. Numerous studies indicate lower overall taxes are paid when an S corporation is utilized.
Common Characteristics of S and C Corps:
-Same liability protection
-Separate legal entities
-The owners are shareholders
-Long standing case law
-Easy transfer of ownership
-Broader range of deductible expenses