8. Which of the following features are unique to a page border?

On May 1, Melany contributed $7,000 and property, with an adjusted basis of $9,500 and a FMV of $11,500, for a 15% share of part

deff fn [24]

Answer:

her beginning basis is $16500.

Explanation:

basis of partnership

= money contributed + adjusted basis of equipment contributed

= $7000 + $9500

= $16500

Therefore, her beginning basis is $16500.

6 0

3 years ago

You plan to retire in 30 years and plan to contribute the same amount of money each year to your retirement fund. The fund earns

tatyana61 [14]

Answer:

$11,215.24

Explanation:

After retirement:

Annual Withdrawal = $100,000

Period = 20 years

Annual Interest Rate = 7%

Amount required at retirement = $100,000 * PVIFA(7%, 20)

Amount required at retirement = $100,000 * (1 - (1/1.07)^20) / 0.07

Amount required at retirement = $100,000 * 10.5940

Amount required at retirement = $1,059,400

Before retirement:

Period = 30 years

Annual Deposit * FVIFA(7%, 30) = $1,059,400

Annual Deposit * (1.07^30 - 1) / 0.07 = $1,059,400

Annual Deposit * 94.46079 = $1,059,400

Annual Deposit = $11,215.24

So, you should contribute $11,215.24 each year into your retirement fund.

3 0

3 years ago

Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stoc

Nat2105 [25]

Answer:

the weighted average cost of capital is 9.22 %.

Explanation:

Weighted average cost of capital is the weighted return required by all providers of permanent sources of finance to the Company.

WACC = ke × (e/v) + kp × (p/v) + kd × (d/v)

where,

ke = cost of equity

= 12.40 %

e/v = weight of equity

= ($22 × 105,000) ÷ ($22 × 105,000 + $45 × 25,000 + $1,500,000 × 98%)

= 0.4709

kp = cost of preference stock

= 8.00 %

p /v = weight of preference stock

= ($45 × 25,000) ÷ ($22 × 105,000 + $45 × 25,000 + $1,500,000 × 98%)

= 0.2294

kd = cost of debt

= Interest × ( 1 - tax rate)

= 7.80 % × (1 - 0.34)

= 5.148%

d/v = weight of debt

= ($1,500,000 × 98%) ÷ ($22 × 105,000 + $45 × 25,000 + $1,500,000 × 98%)

= 0.2997

Therefore,

WACC = 12.40 % × 0.4709 + 8.00 % × 0.2294 + 5.148% × 0.2997

= 9.22 %

4 0

3 years ago

34. Which of the following statements is correct? a. If oligopolists successfully collude, then their combined output will be eq

grandymaker [24]

Answer:

The correct answer is option d.

Explanation:

If oligopolists are able to collude successfully, they will be able to fix price and output similar to a monopoly.

In order to maximize profits, the oligopoly firms keep their prices higher than a perfectly competitive firm but lower than monopoly. The output level is kept higher than a monopoly firm but lower than a perfectly competitive firm.

5 0

3 years ago

"Dream, Inc., has debt outstanding with a face value of $4 million. The value of the firm if it were entirely financed by equity

Artist 52 [7]

Answer:

expected bankruptcy costs = $190000

Explanation:

given data

face value = $4 million

equity = $18.6 million

stock outstanding = 510000 shares

sell price = $31 per share

corporate tax rate = 35 percent

to find out

decrease in the value of the company due to expected bankruptcy costs

solution

we get here value of levered firmed by M & M proportion

value of levered firm = value of equity + value of debit

value of levered firm = $18.6 million + 35% ( $4 million)

value of levered firm = $20 million

and

now we get total market value of firm that is

total market value of firm = market value of equity + market value of debit

total market value of firm = $31 ( 510000 ) + $4 million

total market value of firm = $19810000

so expected bankruptcy costs are here as

expected bankruptcy costs = $20 million - $19810000

expected bankruptcy costs = $190000

7 0

3 years ago