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just olya [345]

2 years ago

9

Jim holds a commercial lease. Last year his rent went up 4% based on a 4% increase in the wholesale price index. What type of le

ase does Jim have?
A) Revolving lease.
B) Wholesale lease.
C) Index lease.
D) Leading Indicator lease.

1 answer:

Brilliant_brown [7]2 years ago

8 0

C. Index Lease
(This question will understand)

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Unlike a general partnership, in a limited partnership

Trava [24]

In a limited partnership:

The inactive partner has limited liability for the business's debts

Explanation:

In a general partnership all partners share equal financial responsibility for the firm's decisions.

This means that all partners are supposed to have equal liabilities but hat is not the case for limited ones.

In limited partnerships there is a general partner who owns most of the business and has most of the availability and the limited partner has pooled resources for the business but has very little personal responsibility to it.

This model is usually there when the firm needs some investors and the person running business is usually the owner only.

7 0

3 years ago

Which function is one that pertains to the Federal Reserve System?I. conducting fiscal policy.II. examining and supervising comm

Over [174]

Answer: yo mama

Explanation:

6 0

3 years ago

A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5%, and the risk premium for this stock is 4%.

ArbitrLikvidat [17]

Answer:

The value of the stock today is $20

Explanation:

Using the CAPM equation, we first calculate the required rate of retunr on the stock.

The equation for CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate
rpM is the risk premium on market
Beta * rpM is the risk premium on stock

r = 0.05 + 0.04

r = 0.09 or 9%

The value of the stock can be calculated using the zero growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock. As the dividend from the stock is expected to remain constant through out to an indefinite period, the value of the stock today is,

P0 = Dividend / r

P0 = 1.8 / 0.09

P0 = $20

3 0

2 years ago

Aspen's Distributors has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company

Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

$r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)$

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

$0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)$

$0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)$

$0.1384 - 0.125 = 0.34375 (.125-r_d)$

$0.0134 = 0.34375\times 0.125 - 0.34375\times r_d$

$r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375$

rd = 0.860181818 = 8.60%

6 0

2 years ago

Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey Inc. 50,000 additional shares in 2020 if Massey

Tpy6a [65]

Answer:

4. $3.00...$2.73

Explanation:

Basic EPS = Net income/average number of shares outstanding

= 1500000/500000

= $3 per share

Diluted EPS = 1500000/(500000 + 50000)

= $2.73 per share

Therefore, Colt should report earnings per share for 2018:

Basic Earnings Per Share of $3

Diluted Earnings Per Share of $2.73

4 0

3 years ago