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xeze [42]
3 years ago
7

Anna employs Mark to purchase for her a suitable site for a roller rink. Mark owns a huge site himself and sells it to Anna at f

air market value without disclosing to her that he is the owner of the land. Mark has not breached his fiduciary duty to his principal.
a) true
b) false
Business
1 answer:
mylen [45]3 years ago
8 0

Answer:

Fiduciary

Explanation:

A fiduciary is a person that is appointed to protect the interests of his principal.

He should ensure that all transactions favor his principal maximally. It also entails full disclosure.

In this case, Mark was going to be the beneficiary of the sale. Even if the site was sold at fair market value, Mark has responsibility to fully disclose the source of the transaction to Anna.

Conflict of duty is when the fiduciary benefits from his position. This is not allowed.

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uring December, Rainey Equipment made a $676,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5
ExtremeBDS [4]

Answer:

Please refer to the below for the appropriate journal entry

Explanation:

Accounts receivable Dr $726,700

($676,000 + $50,700)

Sales revenue account Cr $676,000

Sale taxes payable account Cr $50,700

{(6% + 1.5%) × $676,000

7 0
3 years ago
American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Curren
Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00  %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

WACC = 0.12(0.5) + 0.06(0.5)

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c)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.12(0.3) + 0.06(0.7)

WACC 7.80000%

d)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

<em>Ke 0.16</em>

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.16(0.3) + 0.06(0.7)

WACC 9.00000%

3 0
3 years ago
When eric and david sit down with​ linda, eric complains that david is​ micro-managing him on the quantum electronics project. a
Aleksandr [31]
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3 0
3 years ago
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Suppose that marginal income tax rates are as follows:Income level Marginal tax rate $0–$10,000 10% $10,000–$50,000 20% Greater
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Answer

The answer and procedures of the exercise are attached in the following archives.

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7 0
3 years ago
What do you think are the reasons for business failure? Explain your answer.
Travka [436]

Answer:

The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.

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