Answer:
Pete
Explanation:
In a partnership ( limited ) as seen in the question, The general partner has an unlimited liability to debt owed by the partnership to its creditors hence he will bear the highest proportion of the basis in partnership interest. which is $95,000
A general partner runs the partnership business by providing <em>services</em> that will keep the partnership going ( i.e. runs the business on behalf of other limited partners )
Answer:
1)Protecting property rights and enforce contracts.
2)Providing tax breaks and patents for firms that pursue research and development in health and sciences.
Explanation:
These two alternatives are the most applicable in relation to policies that are most consistent with the goal of increasing productivity and growth in developing countries. The first alternative is related to the protection of property rights and compliance with contracts, which guarantees stability and political confidence to the country, which is important to attract new investors and consequently to leverage the growth and development of a country.
The other alternative concerns tax incentives and patents for companies seeking research and development in health and science. What is a way to encourage the growth of this sector, which in addition to generating savings and productivity for the country, also brings innovations and relevant discoveries in health and science, which helps the growth and development of the country.
In an equipment replacement decision, the cost of the old equipment is called Bsunk cost.
Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
