Answer:
Alexandra took the land subject to the $100,000 liability. Therefore the Alexandra’s basis in the land is $200,000.
Explanation:
in the current scenario "Dove Corporation distributes all of its property in a complete liquidation. Alexandra, a shareholder, receives land having a fair market value of $200,000". Thus, the Basis of property received in a complete liquidation is the property's fair market value on the date of distribution, or %200,000
Answer:
Willow Trees Inc. should use bottom-up planning
Explanation:
Bottom-Up Planning is an effective method to increase productivity and efficiency of the production process. It includes planning, and defining the objectives that company needs to achieve through bottoms first.
Firstly, targets that will help achieve lower level hierarchy are set into place. From there they are slowly incorporated in higher level goals that will eventually reach the global goals of the company.
Answer:
Company HD pays less in taxes
Explanation:
In the case when the company HD and LD have the similar rate of tax, sales revenue, etc even both have favorable net incomes also the company Hd contains greater debt ratio due to which it has more interest expense so that means company hd would pay less taxes
Therefore the above represent the answer
and, this is the answer but the same is not provided in the given options
Answer: 9.7%
Explanation:
Given Data
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
Re = Rf + Beta (Rpm)
= 0.06 +0.9 (0.04)
= 0.096 * 100
= 9.6%
Unlevered Equity Cost ;
ReU= Wd × rd + We × re
= 0.20 × 8% + 0.80 × 9.6%
= 9.28%
Levered Equity Cost:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 * 100
= 9.7%