Answer and Explanation:
The computation of the present values of both alternatives is shown below:
For alternative one, the lump sum amount is
= Yearly payment × PVIFA factor at 8% for 12 years
= $50,000 × 7.5361
= $376,805
And, in the alternative 2, the lumpsum amount i.e. present value is $452,000
So as we can see that the alternative 2 is better as the lumspsum amount is high as compared with the alternative 1
Answer:
5) Nonsanctioned leadership is as important as formal influence.
Answer:
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Explanation:
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Answer: a common stock.
Explanation:
Following the information given in the question, the additional $10,000 of owners' equity will be regarded as a common stock.
Commission stock is regarded as a corporate equity ownership and each share of stock simply means the holder has a small portion of ownership of that particular company. Every addition in owner's equity is common stock.
