Answer:
$8.30 million approx
Explanation:
The computation of the present value of the interest tax shield is shown below:
Year 0 1 2 3 4
Outstanding debt $100 million $75 million $50 million $25 million $0
Less: Interest $10 million $7.5 million $5 million $2.5 million
Less: Tax shield at 40% $4 million $3 million $2 million $1 million of interest
Discount factor at 10% 0.90909 0.82645 0.75131 0.68301
Present value $3.63 million $2.48 million $1.50 million $0.683 million
So, the present value is $8.30 million approx
The discount factor should be computed below
= 1 ÷ (1 + rate) ^ years
Answer:
D. Listing, marketing, facilitating transactions, and managing information
Explanation:
The real estate brokers helps in facilitating the following activities:
Listing - They help in listing out the best options for the buyers
Marketing - The brokers representing the developer ( i.e the seller ) markets their product which is the real estate property
Facilitating transactions - They help the buyers and sellers for the ease in transaction by being a mediator between the seller and the buyer.
Managing information - They manage the information related to the products and the information of the buyer so as to have an hassle free transaction.
Answer:
Should be prepared monthly or as needed to enhance cash management, investment management, and short-term debt management.
Explanation:
The government budget with respect to the cash receipts and cash disbursement should be prepared on the monthly basis or it should be prepared as per the requirement so that the managing of the cash could be enhanced also along with it the managing of the investing and managing of the short term debt could also be enhances
Therefore the first option is correct
Answer:
The correct answer is D
Explanation:
Cash flow method is the method where the costs or the expenses are moved or shifted from the starting to the end of the firm. The flow of expenses does not apply to the inventory but also involve the other factors in the extra processes to which the cost is attached.
So, the baker purchased the inventory items at different prices and then the sold the one inventory item at profit, so the amount of the cash flow from the operating activities will not affected through the method of cash flow.
Answer:
The correct answer is option C
When inflation is constant for an extended period of time,
C. People will correctly anticipate the actual inflation rate, and the actual rate of unemployment will approach the natural rate of unemployment.
