Why are business office established

Rose has a $20,000 basis in the 60% of the Parent Corporation stock that she owns. Parent Corporation owns a 70% interest in Chi

Degger [83]

Answer:

The answer is: Rose will be taxed as receiving a $15,000 dividend distribution.

Explanation:

Since Parent Corporation owns 70% of Child Corporation, for tax purposes they are considered as one single firm. Rose is the main stockholder of Parent Co. so for tax purposes she is also a stockholder in Child Co. When Child Co. gives her $15,000 in exchange for Parent Co. stock, this would be considered as a dividend distribution rather a stock sale.

7 0

3 years ago

Eddie just landed his first job out of college, and he’s excited about the position. However, Eddie needs to be dressed up every

Reptile [31]

Answer:

Why is it important to assess various credit options before making a decision on how to pay for

Explanation:

at questions should Selena ask before deciding on this option?

OPTION 3: Get a private college loan from her bank, Wells Fargo, which is currently offering fixed rates between 5.94% and 10.92%

PROS

What questions should Eddie ask before deciding on this option?

OPTION 2: Use $1250 of the $1500 he has saved in an Emergency Fund

PROS

CONS

What questions should Eddie ask before deciding on this option?

OPTION 3: Get a loan from Lending Club at an APR of 24.99%

PROS

CONS

What questions should Eddie ask before deciding on this option?

Selena is about to enter her senior year of college, when all of a sudden she realizes her school raised the tuition cost, and she’s short $6600 in her financial aid package.

OPTION 1: Charge the payments on the joint credit card account she shares with her mom, at a 14.99% APR

PROS

CONS

What questions should Selena ask before deciding on this option?

OPTION 2: Apply for a Federal Student Loan to coverhe’s excited about the position. However, Eddie needs to be dressed up every day and has no appropriate clothes right now. Eddie figures it will cost about $1250 to start a professional wardrobe.

OPTION 1: Open a 0% (for the first 6 months) credit card

PROS

CONS

What questions should Eddie ask before deciding on this option?

OPTION 2: Use $1250 of the $1500 he has sa

Eddie just landed his first job out of college, and he’s excited about the position. However, Eddie needs to be dressed up every day and has no appropriate clothes right now. Eddie figures it will cost about $1250 to start a professional wardrobe.

OPTION 1: Open a 0% (for the first 6 months) credit card

PROS

CONS

What questions should Eddie ask before deciding on this option?

OPTION 2: Use $1250 of the $1500 he has saved in an Emergency Fund

PROS

CONS

What questions should Eddie ask before deciding on this option?

OPTION 3: Get a loan from Lending Club at an APR of 24.99%

PROS

CONS

What questions should Eddie ask before deciding on this option?

Selena is about to enter her senior year of college, when all of a sudden she realizes her school raised the tuition cost, and she’s short $6600 in her financial aid package.

OPTION 1: Charge the payments on the joint credit card account she shares with her mom, at a 14.99% APR

PROS

CONS

What questions should Selena ask before deciding on this option?

OPTION 2: Apply for a Federal Student Loan to cover the cost

PROS

CONSbwls

What questions should Selena ask before deciding on this option?

OPTION 3: Get a private college loan jsiaolqhs alkas

4 0

3 years ago

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the fir

Gwar [14]

Answer:

$18.29

Explanation:

Material Conversion

Units transferred to

the next department 7.400 7.400

Ending WIP

Materials 50% 1.900 950

Conversion Cost 35% 1.900 665

Equivalents Units Production 8.350 8.065

Cost of beginning work in process inventory $ 10.600 $ 12.800

Costs added during the period $ 142.100 $ 359.500

TOTAL COST $ 152.700 $ 372.300

Equivalents Units Production 8.350 8.065

Cost per equivalent unit $18,29 $46,16

3 0

3 years ago

The market price of a security is $74. Its expected rate of return is 20.2%. The risk-free rate is 3% and the market risk premiu

tigry1 [53]

Answer:

The market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged) will be $44.10.

Explanation:

Note: This question is not complete. The complete question is therefore presented before answering the question as follows:

The market price of a security is $74. Its expected rate of return is 20.2%. The risk-free rate is 3% and the market risk premium is 6.5%. What will be the market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged)

Assume that the stock is expected to pay a constant dividend in perpetuity.

Explanation of the answer is now given as follows:

Since the correlation coefficient with the market portfolio doubles (and all other variables remain unchanged), it implies that beta and also the risk premium will also double.

From the question, we can obtain:

Current risk premium = Expected rate of return - Market risk premium = 20.2% - 6.5% = 13.70%

As the current risk premium will double, we have:

New risk premium = Current risk premium * 2 = 13.70% * 2 = 27.40%

Also, we have:

New discount rate = New risk premium + Market risk premium = 27.40% + 6.5% = 33.90%

Since it is assumed that the stock is expected to pay a constant dividend in perpetuity, the dividend can therefore e calculated as follows:

Dividend = Current market price * Current expected rate of return = $74 * 20.2% = $14.95

The new market price of the security can now be calculated as follows:

New market price of the security = Dividend / New discount rate = $14.95 / 33.90% = $44.10

Therefore, the market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged) will be $44.10.

5 0

3 years ago

Shannon says that she works out in the evenings instead of the afternoons because Roger is always late coming home from work. Ro

IrinaVladis [17]

Answer:

The options are given below:

a) punctuation

b) interpretation

c) perceptuation

d) conjugation

e) intrepidation

The correct option is A. Punctuation.

Explanation:

To punctuate a communication refers to the interpretation of an ongoing sequence of events by determining that one event is the cause and the resulting event is the response. In a situation with communication, if one thing happens, something else always happens.

In the scenario above, both Shannon and Roger are exemplifying the theory of punctuation, because they each think that their actions are as a result of the actions of the other person.

7 0

3 years ago

Why are business office established​

Why are business office established