Full question attached
Answer:
B. Choose investment A
Explanation:
Looking at the investment cash flows for the four years, investment A maximises the shareholders wealth mostly because it covers cost of investment quicker than other investments B, C and D. It begins with the highest cash flow return, for first and second year therefore pay back period is lower with investment A. Also net present value is higher.
Answer:
$4,300
Explanation:
Since the call expired, the $500 premium must be reported as a short term capital gain. Short term capital gains are taxed in the periods that they occur, so they do not affect the basis of the stocks. It is something similar to dividends, if you receive dividends they will be taxed as short term gains = ordinary income, bu they do not affect the stocks' basis.
<h3>In the above scenario, World Corp. engaging in Compensation trade
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Explanation:
Compensation trade is a type of countertrade procedure in which an incoming investment is repaid from the income generated by that investment.
In compensation trade, an investor is repaid by a share of the proceeds or outcomes produced by the goods and services provided by the investor.
Compensation trade is a type of barter where one of the flows is partly in commodities and partly in hard currency.
World Corp. take partial payment for the plant in the form of lumber products produced at the plant is a Compensation trade.
True. Traits are similar to characteristics of a character
