Answer:
Saver's credit = $0
Explanation:
He is not entitled to any saver's credit, as he is not married and his AGI is greater than $32,000. Therefore the Saver's credit is equal to zero. Is also important to consider that Desmond is a head of a household and his AIG is between 31,126 and 48,000.
Answer:
Head Office Cost Allocations
Explanation:
Usually Projects have Head Office costs that are allocated to them.
Head office costs allocated to projects will be the same for the choices of alternatives (replacing or not replacing the machine).
The Head office costs are a costs that is incurred at Head office as well.
Thus, Head Office Costs allocations are <em>irrelevant</em> and must not be included in the analysis.
Answer:
derived demand
Explanation:
Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Company X must understand that this demand is actually <u>derived demand</u>, which means that the demand for industrial products and services is driven by demand for consumer products and services.
Answer:
D. international diversification
Explanation:
The Multinational corporations can reduce their risk by international diversification and reduced risk can increase debt capacity of MNC. The higher capacity to meet scheduled debt payment also reduces cost of capital.
The effect of international diversification on capital structure can be explained through
1. Co-insurance effect: Combining businesses with international firms provides reduction in operating risk and thereby increase debt capacity. This helps MNCs to include more debts in their capital structure.
2. Transaction cost theory. Internationalization is a way of internatilize intangible assets. Since intangible assets are not difficult to sale , international diversification helps MNCs to exploit their intangible assets. So MNCs with an eye of international diversification will try to develop these type of assets in their asset base.
3.Agency cost argument: MNCs will have high agency costs Diversification helps to reduce these agency costs International diversification creates larger markets and generates growth opportunities. Growth opportunities and debt ratios are inversely proportional .MNCs with higher growth opportunities will rely on equity rather than debt.
Answer:
c. $37.50
Explanation:
The computation of the market value of the stock split is shown below:
= Current market value ÷ four ÷ one
= $150 per share ÷ 4 ÷ 1
= $150 per share ÷ 4
= $37.50
Simply we divide the current market value by the four for one stock split ratio so that the correct market value can come. The four for one reflect the ratio criteria which is mentioned in the question
All other information which is given is not relevant. Hence, ignored it