Answer:
The correct answer is letter "D": sole proprietor.
Explanation:
A sole proprietorship is a type of organization where the owner is only one person and the individual files taxes on the profits earned with the business. Under this regime, the owner is fully liable for the company which implies personal assets can be considered in front of debt.
When it comes to reporting equity, a <em>sole proprietorship</em> does it in the same way as a <em>Limited Liability Corporation</em> (LLC). The only difference relies on reporting the equity under the sole proprietor name rather than the name of the LLC.
Answer:
The answer is Fixed cost.
Fixed cost remains constant for a given period and does other change with the eh level of production. However, the per unit fixed cost decreases when the Level of production increases and vice versa.
Also, fixed cost is difficult to.control and manage relatively to the variable.costs.
Explanation:
Answer:
WACC 13.85600%
Explanation:
First we calculate Eastern Pizza CAPM:
risk free = 0.08
market rate = 0.12
premium market = (market rate - risk free) 0.04
beta(non diversifiable risk) = 2
Ke 0.16000
Then we solve for WACC
Ke 0.16000
Equity weight 0.8
Kd 0.08
Debt Weight 0.2
t 0.34
WACC 13.85600%
The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.
The answer I think it is ,is (B.)
Answer:
low
Explanation:
cost of borrowing money is less
