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Kryger [21]
3 years ago
12

Four friends plan to form a corporation for purposes of constructing a shopping center. Charlie will be contributing the land fo

r the project and wants more security than shareholder status provides.
He is contemplating two possibilities:

receive corporate bonds for his land or take out a mortgage on the land before transferring it to the corporation.

Comment on the choices Charlie is considering. What alternatives can you suggest?
Business
1 answer:
grandymaker [24]3 years ago
4 0

Answer:

The two security possibilities that Charlie wants in exchange for contributing land for the purpose of constructing a shopping center, a project that he joined his three friends to accomplish are to:

  • receive corporate bonds for his land or
  • take out a mortgage on the land before transferring it to the corporation.

Another alternative would be equity in the corporation.

Explanation:

If charlie opts for the fist option which is to receive bonds for his land,  He can hold it  until their maturity date and collect interest payments on them. Bond interest is usually paid twice a year or he can resell them at a higher price.

Taking out a mortgage on his land will also accrue earnings that is secure before transferring it to the operation.

However, having an equity stake in  the corporation will pay much more. A shopping center is a real estate investment which is also secure and less risky.

His best best would be to negotiate a good percentage higher than 25% stake on the corporation's equity.

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The inflation rate over the past year was 3.8 percent. If an investment had a real return of 6.9 percent, what was the nominal r
Natalka [10]

Answer:

Nominal rate of return= 10.96%

Explanation:

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money

<em>Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.  </em>

<em>Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation. </em>

The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;

N = ( (1+R) × (1+F)) - 1

N- nominal rate, R-real rate, F- inflation

Nominal rate of return =(1.038)× (1.069) - 1 = 0.109622

Nominal rate of return =  0.109622 × 100 = 10.96%

Nominal rate of return= 10.96%

6 0
3 years ago
Even though many ballparks practice price discrimination between adults and children in selling tickets, such discrimination is
IRISSAK [1]
Discrimination is not applied at the concession stands because there can be exchange of the product from children, who'd buy it at a lower price, to adults.
3 0
3 years ago
Read 2 more answers
Explain why you wouldn't want to use the customer first or last name field as the primary key for a table. What problem could th
zlopas [31]

Answer:

There could be a customer with the same name or surname. It could cause a mess in your database if the customer wants payback for something and there will be the customer with the same name. I think that the primary key should be consisted of unique Customer's ID number.

Read more on Brainly.com - brainly.com/question/2870954#readmore

Explanation:

Asked on brainley already

4 0
3 years ago
You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exac
allsm [11]

Answer:

PV= $620,921.32

Explanation:

Giving the following information:

Cash flow (Cf)= $100,000

Interest rate (i)= 7.25%

<u>First, we need to calculate the value of the investment at the moment of the first payment (five years from now). </u>To calculate the present value we need to use the following formula:

PV= Cf / i

PV= 100,000 / 0.1

PV= $1,000,000

<u>Now, the value today:</u>

PV= FV / (1 + i)^n

PV= 1,000,000 / (1.1^5)

PV= $620,921.32

8 0
3 years ago
Akika Corporation started as a small firm and has grown substantially in the past decade. Its interests span from electronics to
lakkis [162]

Answer:

a. Unity of direction

Explanation:

Unity of direction: In this principle, the direction of work is given by the higher authority with a view to achieving the organizational objective.  

Division of work: In this principle, the work is divided between many subordinates/ employees, so that the task should be done in proper time and in an efficient & effective manner.

Scalar chain: This scalar chain represents the rank from high authority to low authority in a straight line so that proper communication/ cooperation can be done without any misunderstanding.  

Unity of command: In this principle, the employees are responsible for only one person/ one supervisor/ one commander.  

In the given scenario, the unity of direction principle applies as the board of directors wants to establish an independent business so that each domain objective can be achieved so that it becomes to accomplish the organizational objective.  

6 0
3 years ago
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