Answer:
C.) Ajak, Tech, and Utech Corporations are an affiliated group.
Explanation:
An affiliated group refers to two or more separate corporations that have some type of common ownership relationship between them, but do not file consolidated financial statements, and therefore are considered separate entities for tax purposes.
To be considered an affiliated group, the parent company must own at least 80% of another corporation. Baxter corporation is excluded because Tech only owns 75% of it.
Answer:
$13.1
Explanation:
The value of the stock at the end of the 4 years from now shall be determined through following mentioned formula:
Value of stock at year 4=D5/R-G
R=required rate of return=12%
G=growth rate in dividends=7%
D5=dividend at the end of year 5, which shall be calculated as follows:
D1=$0.50
D2=$0.50*1.07=$0.535
D3=$0.535*1.07=$0.572
D4=$0.572*1.07=$0.612
D5=$0.612*1.07=$0.655
Based on the above calculations, the value of stock at the end of year 4 is given as follows:
Value of stock at year 4=$0.655/12%-7%
=$13.1
Answer:
D. Objectivity
Explanation:
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Answer:
a. It is easier to raise finance as the business can sell shares.
Explanation:
A private limited company can be defined as a type of legal hybrid-business structure that can combine both partnership and corporation form of business, and the owners are only responsible for its debts with respect to the amount of capital they have invested.
Some of the characteristics (features) of a private limited company include;
I. Shares can be issued by the private limited company to raise capital.
II. All the shareholders (owners) of a private limited company have limited liability.
III. After the death of a shareholder, a private limited company will continue to operate its business.
An advantage of operating a business as a private limited company is that it is easier to raise finance as the business can sell shares.
However, one of the disadvantages of a private limited company is that the general public are able to view a summary of their business accounts.
