1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
An entrepreneur risks _______ in return for financial gain.
satela [25.4K]
I think what would fill that blank space would be failure due to the fact that something with his business may have gone wrong or a wrong transaction was made. But sometimes these things can actually be a major plus for them without them even realizing before they made the choice.
5 0
3 years ago
The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly.
Bond [772]

Answer:

$60 per unit

Explanation:

Total overheads:

= Overheads of fabrication department + Overheads of assembly department

= $90,500 + $109,700

= $200,200

Total labor hours:

= Blinks + Dinks

= (1,013 × 4) +  (1,859 × 5)

= 4,052 + 9,295

= 13,347

Overhead rate per hour = Total overheads ÷ Total labor hours

                                        = $200,200 ÷ 13,347

                                        = $15 per hour

Total overhead cost for blinks:

= Total hours for blinks × rate per hour

= 4,052 × $15 per hour

= $60,780

Overhead cost per unit for Blinks:

= Total overhead cost for blinks ÷ Total units

= $60,780 ÷ 1,013

= $60 per unit

5 0
3 years ago
True or False. Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (F
slavikrds [6]

Answer:

True

Explanation:

Plz mark brainliest thxxx :) hope it helps

5 0
3 years ago
Read 2 more answers
You are stocking shelves when you notice that a large line has formed at the only open cash register. what will you do?
Sauron [17]
I will stop what I am doing to go open another cash register so things will move by quicker and customers won't get irritated
7 0
3 years ago
Read 2 more answers
Consider the following five situations. In which situation would a borrower be best off and in which situation would a lender be
umka2103 [35]

Answer:

The borrower is best off in situation <u>"a"</u> and the lender is best off in situation ▼  "C" .

Explanation:

Considering all the situations given in the options, the <u>borrower</u> is best in situation <u>a</u> and <u>lender</u> is best off in situation in <u>c</u>.

<u>Part a </u>

Real Interest rate = Nominal Interest rate - Inflation rate = 14 - 17 = -3 per cent. Thus, the purchasing power of money has fallen and the person has to pay back money with little purchasing power as compared to the value of the purchasing power at the time he borrowed money. Thus, borrowers are best off.Thus, <u>borrower</u> is best off when the inflation rate is very high.

<u>Part c</u>

Inflation rate is negative, thus the purchasing power of money will increase and lenders will get back money with higher purchasing power as compared to the value of the purchasing power of money at the time he lend the money. Thus, <u>lender </u>is best off when inflation rate is lowest.

5 0
3 years ago
Other questions:
  • Assume baseball player salaries are fully determined before the season starts. From the point of view of the baseball team owner
    11·1 answer
  • The model of competitive markets relies on these three core assumptions: 1. There must be many buyers and sellers—a few players
    13·1 answer
  • Determine the following:_______
    9·1 answer
  • CA5-5 WRITING (Cash Flow Analysis) The partner in charge of the Kappeler Corporation audit comes by your desk and leaves a lette
    6·1 answer
  • Marika is a senior journalist at a news agency. She goes on a temporary leave for six months and travels around different parts
    15·1 answer
  • Upon graduation from​ college, Warren Roberge was able to defer payment on his ​$33 comma 000 student loan for 9 months. Since t
    15·2 answers
  • Alex works as a customer service representative at an insurance company. Before starting his shift, Alex reviews issues from his
    5·2 answers
  • Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth
    7·1 answer
  • How to become a firefighter. I want to become one.
    14·1 answer
  • Which market is most likely to be characterized by oligopolistic competition in the united states?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!