Answer: business plan
Explanation:
Stock dividend, is a method used to distribute wealth to its shareholders by a company.
A stock certificate is a legal document which implies that the owner has some number of stocks or shares in a corporation.
Business loan agreement is simply an understanding that takes place between a business and a lender which contains the promises made by both parties regarding giving the money by the lender and the repayment plan by the borrower.
A business plan is a document that simply describes a business and, its products or services, its financing, leadership and staffing, its operations model, etc.
<span>This best reflects the broader regulatory environment in which the firm operates. Changes in this environment will undoubtedly have effects on the firms future product offerings and bottom line.</span>
Answer: 21.63%
Explanation:
The firm's cost of equity capital will be calculated thus:
Market value of assets = $50000
Debt = $12500
Cost of debt = 7%
Unlevered cost of equity = 18%
Then, we'll calculate equity which will be calculated as:
= Market value of assets - Debt
= $50000 - $12500
= $37500
Then, the cost of equity capital will be:
= Unlevered cost of equity + [(Debt/equity) x (Unlevered cost of equity - Cost of debt)]
= 18% + [($12500/$37500) x (18% - 7%)]
= 18% + [0.33 x 11%]
= 18% + 3.63%
= 21.63%
Answer:
2. double taxation of distributed profits
Explanation:
Corporation is a business entity that is formed by the issuance, sale and purchase of shares or stock. It is owned by people known as shareholders and their liability is limited to the shares or stock held.
Considering all the options given, the only disadvantage in a corporation is double taxation of distributed profits. as the company incurs company income tax (CIT) and the dividend paid to shareholders attracts other forms of tax such as withholding tax.
