Answer:
$25,891,632.37
Explanation:
The computation of the market value of the bond in two years is given below:
We know that
Market value of the bonds be in two years is
= pv(rate, nper,pmt,fv)
Here
Nper = 2
PV = ?
PMT = 25000000 × 10% = 2500000
FV = 25000000
Rate = 8%
Now
Market value of the bonds be in two years is
= pv( 8%,2,2500000,25000000)
= $25,891,632.37
Answer:
0.31
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
Percentage change in income = 
= 2.3
when income was $300, ramen was demanded twice, that is 2/7 times a week. converting to fraction gives 0.29
Percentage change in quantity = 
= 0.72
0.72/2.3 = 0.31
Answer:
Increase interest deductions for the limited partners.
Explanation:
In the given scenario the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property to the original amount of $8,000,000. The interest rate on both mortgages is the same.
Refinancing a loan means that more money is disbursed to the borrower before the termination of the loan.
When a loan is refinanced at the same interest rate the borrower pays more interest.
For example if the mortgage remains at $5,000,000 the interest paid on this principal will be lower.
When the loan is refinanced to $8,000,000 at the same Interest rate the interest paid will be higher because principal is higher.
So the general partner aims to increase the amount of interest paid.
Answer:
$ 210 million
Explanation:
Data provided :
Taxable income for the current year = $ 300 million
Tax rate of the income = 40%
therefore, the income tax for the current year = 0.40 × $ 300 million
or
the income tax for the current year = $ 120 million
Decrease in the deferred tax assets = $ 30 million
Increase in the deferred tax liabilities = $ 60 million
Hence,
the total income tax expense for the year
= $ 120 million + $ 30 million + $ 60 million
or
= $ 210 million
