Answer:
Option c. is correct
Explanation:
A stock is an investment that denotes an ownership share in a company. Purchasing a company’s stock means purchasing a small piece of that company that denotes a share.
In the given question, if the company goes ahead with the stock issue that would not affect total assets: the interest rate Taggart pays, EBIT, or the tax rate then the tax bill will increase.
Answer:
The purchase price of the house is $94,000
Explanation:
Let the amount invested by David be b, then the amount used to purchase the house would be 100,000 - b
If he invested 1/3 of it at 4 percent simple annual interest and 2/3 of it at 6 percent simple annual interest. If after a year the income from the two investments totaled $320
Then,




16b = 320 × 300
b = 320 × 300/16
b = 6,000
Therefore, the cost of the house (100,000 - b)
= 100,000 - 6,000
= $94,000