Answer:
The appropriate answer is "$9,300".
Explanation:
The given values are:
FMV,
= $31,000
Adjusted basis,
= $15,500
Encumbered mortgage,
= $9,300
Now,
The Gerald's outside basis will be:
= 
On substituting the given values, we get
= 
= 
= 
= 
($)
Answer:
(a) increase its dividend;
dividends are increased for two reasons:
- the company has excess cash and it doesn't have any possible investments on hand
- the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.
(b) buy back some of its common stock shares;
- the company has excess cash and the board and upper management believe that the stock price is too low.
(c) pay down some of its debt;
- the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.
(d) increase its use of internal financing;
- the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.
(e) take the public firm private
- the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.
Answer:
This is false.
Explanation:
The statement in the question interchange the meanings of the two terms. The correct definitions are therefore given as follows:
Libel is can be described as a written or published false statement about another person that damages their reputation unjustly.
Slander refers a spoken false statement about another person that damages their reputation unjustly.
Based on the definitions above, the statement in the question can be correctly rewritten as follows:
Slander is a defamatory or hurtful remark told about someone to others, and libel is when this remark or comment is broadcast over the TV, radio, printed in a publication, or forwarded to others on the Internet.
Answer: 4 years
Explanation:
First find the amount Rula borrowed from her hometown bank:
= Price of car - Down payment
= 15,000 - 2,000
= $13,000
The amount that Rula is to pay is an annuity. The loan is the present value of that annuity.
Present value of annuity = Annuity * Present value interest factor of annuity
13,000 = 4,280 * Present value interest factor of annuity
Present value interest factor of annuity = 13,000 / 4,280
= 3.0373
Use an annuity table to find out the year that 12% as a discount rate intersects with, such that the present value of interest factor of annuity is 3.0373.
That number is:
= 4 years
