Answer:
Debt
Explanation:
Debt is the lowest cost source of financing because the <em>interest</em> return given to holders of debt has a <em>tax shield</em> (tax deductible) that is provided by the Section 11j of the Income tax Act.
The other sources of finance give a return in form of <em>dividends</em>. Dividends are are not tax deductible hence they attract a huge cost.
Answer:
The amount of the impairment loss for this asset is <u>$110,000</u>
Explanation:
A assets is impaired when the fair market value of that assets lowers than the book value of the asset.
To calculate the impairment of an assets following formula is used
Impairent = Book value of Asset - fair market value of the asset
Placing values in the formula
Impairent = $700,000 - $590,000
Impairent = <u>$110,000</u>
In the bond market if the government imposes a limit on the amount of daily transactions, liquidity of bonds relative to other assets will decrease, increasing the interest rate and lowering bond's prices.
In the bond market various debt instruments are bought and sold by a variety of entities. In the bond market, corporations and governments issue bonds in order to raise debt capital to fund operations or seek growth opportunities.
If the government imposes a limit on the amount of daily transactions in the bond market, then bonds will become less liquid with respect to alternative assets, by also lowering bond's prices and increasing the interest rate.
Hence, bonds are issued by governments and corporations when they want to raise money.
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Answer: Fee simple defeasible.
Explanation:
The estate sales is an example of fee simple defeasible contract, where a property is sold with a conditionality. A fee simple defeasible contract is a kind of property sales contract, where a property is sold on conditionality that if violated, the property would be returned back to the seller.
