Answer:
A cheque, or check, is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account where their money is held.
Answer:
d. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan
Explanation:
interests paid to debt holders = $13,500,000 x 10% = $1,350,000
generally, interest revenue is taxed as ordinary revenue = corporate income tax rate (if debt holder is a business) or personal income tax (if debt holder is an individual).
under the first plan, debt holders get nothing because there is no outstanding debt since the company is an all equity firm.
under the second plan, if the personal tax rate on interest income is 55%, which is really high, the debt holders will earn $1,350,000 x (1 - 55%) = $607,500
Answer:
False.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of trademarks, copyright and patents.
In this scenario, Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company.
Since Gidgit is patented it cannot be sold to the government because it is a registered intellectual property that cannot be used or sold without the approval or consent of the owner.
Answer:
Total present value=$617,523.24
Explanation:
The formula for calculating continuous compounding is given as follows
F=P(e^it)
F=future value
P=present value
i=interest rate
t=time involved i.e 1 year or 2 year
e=Mathematical constant=2.7183
By applying above mentioned formula, the present value of inventory control software by Baron Chemicals shall be calculated as follows:
Present value of year 2 Cash flow= $286,555.76
($350,000/e^10%*2)
Present value of year 1 Cash flow= $180,967.48
($200,000/e^10%*1)
Present value of year 0 Cash flow= $150,000
Total present value=$617,523.24
