Answer:
option a
Explanation:
owner keeps all the profits
Answer:
d. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan
Explanation:
interests paid to debt holders = $13,500,000 x 10% = $1,350,000
generally, interest revenue is taxed as ordinary revenue = corporate income tax rate (if debt holder is a business) or personal income tax (if debt holder is an individual).
under the first plan, debt holders get nothing because there is no outstanding debt since the company is an all equity firm.
under the second plan, if the personal tax rate on interest income is 55%, which is really high, the debt holders will earn $1,350,000 x (1 - 55%) = $607,500
Answer:
The company should sale each kilograms for $5.68
Explanation:
We have to solve for the cost saving the kilograms of L could bring if replace the other material:
additional cost x kilograms needed
0.62 x 3 = 1.86 per finished goods unit
with acost of 1.86 dollar the company can replace a raw material which cost:
9.45 x 2 = 18.9 per finsihed goods unit
The differencial gain will be for: 17.04 for every three kilograms
we divide this gains to get the marginal cost saving per kilograms:
17.04 / 3 = 5.68
The company should sale the kilogram of L at $5.68 as this is the benefit they can provide to the company if used
Answer:
yes, there is no separation between the administration and ownership in a partnership.
the partnership contract stipulates which partners have the decision making ability and which partners don't. We cannot say specifically that limited partners have no say in decision making.
Moreover, the control of the partnership is not based on the amount invested like in corporations. that too is based on the contract. however, in practice, yes if you have more money invested in the business, you have more influence.
Explanation: