False
A corporation wouldn't have perpetual, or everlasting, life if the death of one of its shareholder could end it. Perpetual means never ending.
Answer:
C. VL = VU + PV(Tax Shield) - PV(CFD)
Explanation:
The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.
The factors that make capital appreciation bonds (CABs) a controversial method for local governments to finance projects include "Local governments tend to owe investors way above the amount borrowed."
Another factor that makes capital appreciation bonds (CABs) a controversial method for local governments to finance projects is that they enable local governments to fund new projects without raising taxes.
Capital appreciation bonds (CABs) is often described as a form of municipal security whereby its interest on principal rises and compounds until maturity.
Capital appreciation bonds (CABs) allows investor earns a sole payment indicating the face value of the bond and all accrued interest.
Hence, in this case, it is concluded that Capital appreciation bonds (CABs) are a controversial method of financing projects.
Learn more here: brainly.com/question/14325978
Answer:
Present value of this stream of payments=97,179.75
Explanation:
The payment stream described is an ordinary annuity, 10 equal payments in equal intervals, with the 1st payment being received at the end of year 10 and the last one at the end of the 20th year.
Present value of an ordinary annuity is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
Where PMT is equal payments made each period
= $20,500
i is the required rate of return per period
= 5%
n is the number of periods= 10
Applying this formula would thus give the present value of the annuity at the end of year 10 as follows:
![Present value(t=10) =20,500*\frac{[1-(1+0.05)^-^1^0]}{0.05}](https://tex.z-dn.net/?f=%20Present%20value%28t%3D10%29%20%3D20%2C500%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E0%5D%7D%7B0.05%7D)
= 158,295.57
This is the present value at the end of year 10, and this value has to be discounted 10 years back to today as follows:
=97,179.75
BRCK is an example of a <u>International company . </u>
<u>BRCK began in 2014 and from the start designed its products in a developing country while manufacturing in a developed country. Its corporate headquarters are in Nairobi, Kenya, at a technology center that houses a small group of entrepreneurs. By 2016, the company was selling in 50 countries.</u>
Explanation:
International companies are those companies that sell their products Globally,but when it comes to production they prefer ,to carry out the task in developing countries mainly because the governments in developing countries offer various incentives to international companies like lower taxe rate and less legal regulations, with the intention of encouraging them to to set up factories.
<u>BRCK began in 2014 and from the start designed its products in a developing country while manufacturing in a developed country. Its corporate headquarters are in Nairobi, Kenya, at a technology center that houses a small group of entrepreneurs. By 2016, the company was selling in 50 countries.</u>
<u></u>
<u>Thus BRCK IS AN EXAMPLE OF AN INTERNATIONAL COMPANY</u>
