Answer:
Option C Both statements are correct.
Explanation:
An S Corporation is not liable for taxes under US tax system, the taxable income of the company is included in the income of shareholders for the year. So if the company is S company then the share of taxable income attributable to Jennifer is 60% of the total Taxable Income which is $48,000 for the year. So the statement 1 is correct.
If the company is taxed under US tax system which means it is C Corporation, then its taxable income will not be included in the income of its shareholders because it would be double taxed for the year. The only income that will be included in the shareholder's income will be the dividends that the shareholder will receive. So the taxable income for the year would be $18000 which is the dividend income for the year. So the statement 2 is also correct.
Answer:
option (A) $1,384.24
Explanation:
Given:
Free Cash Flow in Year 3 = $88 million
Expected growth rate = 10% = 0.1
Constant Growth Rate, gC = 4%
Gonzales Corporationʹsexpected terminal enterprise value in Year 2
=
=
Here,
FCF3 is the Free Cash Flow in Year 3
FCF3 is Free Cash Flow Now
=
= $1,384.24
Hence,
The correct answer is option (A) $1,384.24
Answer: Option (A) is correct.
Explanation:
Correct Option: A.supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve.
In the long run, equilibrium price of a perfectly competitive firm implies that there is no economic profit for the firm. This situation occur when the marginal cost is equal to the average total cost.
The firm is break even when the price is equal to the minimum point of average total cost of the firm. So, there is no possibility of economic profit for the firm.
B. Investment
Hope this helps. :)
Answer:
Money is a concept which we all understand but which is difficult to define in exact terms. Money is anything serving as a medium of exchange. Most definitions of money take 'functions of money' as their starting point. 'Money is that which money does.