I believe the answers are:
a. there is no limit on the number of owners a corporation may have, thus allowing the corporation to raise substantial amounts of capital.
They do this by selling shares on the stock market. When the shares is sold in this place, every individuals who can afford the price of a single share are eligible to be part owner of the corporation.
b. the life of the business can continue beyond the death of any of the owners.
In corporations, when one of the owners somehow died, the ownership of the corporations would be transferred to the person whould receive the inheritence (usually immdediate family members)
c. the corporation can use the assets of the owners to pay for corporate liabilities.
This happen during the liquidation process. To pay for corporate liabilities, owners had to sell their assets with the equal value of their percentage of their ownership times the amount of liabilities.
It will decrease
because the marginal productivities of workers will decrease. Diminishing marginal product occurs when the
marginal product of an input goes down as the quantity of the input goes up. The transformation in product resulting from
employing one more unit of a particular input for instance, the change in
output when a firm's labor is mark up from five to six units, assuming that the
mass of other product are kept constant is
called The input of marginal product or marginal physical product.
Answer:
194,112.8
Explanation:
The computation of Net Present Value is shown below:-
Net Present Value = Present value of cash inflows - Present value of Cash outflows
= -757,000 + 396,000 × PVAF (12%, 3 years)
= -757,000 + 396,000 × 2.4018
= -757,000 + 951,112.8
= LLC 194,112.8
= 194,112.8
Therefore for computing the net present value we simply applied the above formula.
Answer:
A) $1384.24
Explanation:
Terminal Value = Free Cash Flow (FCF) of last forecast *(1+ perpetual growth rate)/(discount rate – perpetual growth rate)
FCF of last forecast = $88*(1+10%)^2 = $106.48
Gonzales Corporationʹs expected terminal enterprise value in year 2 = $106.48 * (1+4%)/(12%-4%) = $1382.24
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