Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following values and adjusted bases:
FMV Adjusted basis
Inventory $35,750 $10,100
Building 153,000 106,500
Land 291,750 375,000
Total $480,500 $491,600
The corporation also assumed a mortage of $153,750 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $320,750.
Required:
a. What amount of gain or loss does Carla realize on the transfer of the property to the corporation?
b. What amount of gain or loss does Carla recognize on the transfer of the property to the corporation?
c. What is Carla's basis in the stock she receives in her corporation?

Answers

Answer 1

Answer:

a. The amount of loss does Carla realize on the transfer of the property to the corporation is -$17,100

b. Carla does not recognized any gain or loss on the transfer of the property to the corporation

c. The amount of Carla's basis in the stock she receives in her corporation is $337,850

Explanation:

a. In order to calculate the amount of gain or loss does Carla realize on the transfer of the property to the corporation we would have to use the following formula:

amount of gain or loss=Fair market value of stock received+morgage assume by corporation-Adjusted tax basis of the property transferred

amount of gain or loss=$320,750+$153,750-$491,600

amount of gain or loss=-$17,100

The amount of loss does Carla realize on the transfer of the property to the corporation is -$17,100

b. Carla does not recognized any gain or loss on the transfer of the property to the corporation because the requirements are met and no boot is received in exchange.

c. In order to calculate the amount of Carla's basis in the stock she receives in her corporation we would have to use the following formula:

amount of Carla's basis in the stock=Adjusted tax basis of the property transferred-morgage assume by corporation

amount of Carla's basis in the stock=$491,600-$153,750

amount of Carla's basis in the stock=$337,850

The amount of Carla's basis in the stock she receives in her corporation is $337,850


Related Questions

The change in technology and the globalization have brought new pattern of organizing
today's companies, and thus, the managers need to consider these new concepts in
organization's design process. With this statement, discuss the emerging issues in
organization design and architecture.

Answers

Following are the emerging issues in organization design and architecture:Technology and Globalization, Customer Relations,Technical Knowledge, Flexibility, Employee's Well-being.

Following are the emerging issues in organization design and architecture:

Technology and Globalization: The modern era's rapid technology and globalization have forced the organizations to adopt a new pattern of organizing. Managers are focusing more on technology and globalization and they are ensuring that the company can cope with the emerging challenges.Customer Relations: Customers are the major driving force in every business. To maintain the customer base, the managers need to focus on customer relations as the organization's design process should be centered around their needs. This will help the managers in creating a company that provides excellent customer service to its customers.Technical Knowledge: The success of an organization depends on the technical knowledge of its managers. Managers need to have knowledge about new and emerging technologies so that they can use them to enhance the organization's capabilities. In addition, managers need to know how to apply this technical knowledge to improve the organization's structure and operations.Flexibility: Flexibility is a crucial component in the organization's design process. The managers need to design the organization that is flexible enough to adapt to new changes and technologies. This will help the managers in keeping up with the rapidly changing business environment.Employee's Well-being: The well-being of employees is also a significant issue in the organization's design process. The managers need to design the organization in a way that the employees can work efficiently, and their personal needs are also met. This will help in improving the employee's productivity and motivation level and ensure their loyalty to the organization.

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Nupur Nagpal, after compleftng her M.B.A. stud es, began to help her father, Shri Bhushan Nagpal, in his business. The business with a limited capital investment, was running successfully. All the workers were happy. Nupur wanted to use the modern business techniques in every area of business, namely, purchase, sale, production, finance, etc. In fact, she wanted to implement the methods, which she had studied in her M.B.A., in her business. As soon as she started interfering in the business with her latest techniques, the workers began to protest against her. Looking at the increasing protest against herself, she became disappointed. Ultimately, she gave up her business and started working in another company. In the business such circumstances were created that even her father could not take any balanced decision. Good Workers began to leave the business. The goodwill of the business in the market went on declining. In no time, the liabilities of business became many times more than his assets. On account of the pressure exerted on him by the creditors, Mr. Nagpal cleared the debts of business by disposing of his domestic properties. Mr. Nagpal could not bear with this situation and owing to his heart failure, he died. Ultimately, the business got closed. (a)To which form of business organization is concerned the above paragraph .

Answers

The above paragraph refers to the proprietorship form of business organization.Proprietorship is the most simple and common form of business organization. Proprietorship is owned, managed, and controlled by an individual who is the sole proprietor of the business.

A sole proprietorship is the easiest and most common type of business to form and dissolve. A sole proprietorship is owned and managed by one person, referred to as the sole proprietor.

Because the proprietorship form of organization is simple to establish, run, and manage, it is a popular choice for small and medium-sized firms.

The business owner has complete authority over the company's operations, as well as all profits and losses. The proprietor has total authority over the company and can make any changes they see fit. There is no distinction between personal and business assets in a proprietorship.

The proprietorship form of business organization has its own set of advantages and disadvantages. Proprietorship is best for small businesses because it is simple to set up, and there is no separate legal entity created.

However, one of the disadvantages of proprietorship is the unlimited liability of the proprietor for the business debts.  Nupur Nagpal, after finishing her M.B.A., began to help her father, Shri Bhushan Nagpal, in his business, which was running successfully with limited capital investment.

However, when Nupur tried to incorporate modern business techniques that she learned during her M.B.A., the workers began to protest, which led to a decline in the business's goodwill.

The business's liabilities became many times more than its assets, and Mr. Nagpal died of heart failure due to the pressure exerted on him by the creditors. The business ultimately failed, and it was closed down.

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E10.13 (LO 1, 3) (Entries for Acquisition of Assets) Presented below is information related to Zonker Company. 1. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land Buildings Equipment $400,000 1,200,000 800,000 Total $2,400,000 Zonker Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property. 2. Zonker Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. Repairs to building Construction of bases for equipment to be installed later Driveways and parking lots Remodeling of office space in building, including new partitions and walls Special assessment by city on land $105,000 135,000 122,000 161,000 18,000 3. On December 20, the company paid cash for equipment, $260,000, subject to a 2% cash discount, and freight on equipment of $10,500. Instructions Prepare entries on the books of Zonker Company for these transactions.

Answers

Answer:

See below

Explanation:

1. Journal entry

Land Dr $350,000

Building Dr $1,050,000

Machinery and equipment Dr $700,000

........................ To Common stock Cr $1,250,000

(12,500 × $100)

.......................To Paid in capital in excess of par Cr $850,000

($2,100,000 - $1,250,000)

Workings

Cost of plant is $168 × 12,500 = $2,100,000

2. Journal entry

Building Dr $266,000

($105,000 + $161,000)

Machinery and equipment Dr $135,000

Land improvements Dr $122,000

Land Dr $18,000

..............................................To Cash a/c Cr $541,000

3. Journal entry

Machinery and equipment Dr $255,500

..........................................To cash a/c Cr $255,500

Working

($10,500 + $245,000 which is 98% of $250,000)

when does your teacher tell you good boy?​

Answers

ANSWER: um when you get something correct lol

In the Response-Ability Axis handout, speaking with immediacy means moving towards what

Answers

In the context of the "Response-Ability Axis" handout, speaking with immediacy means moving toward the present moment and addressing the current situation or issue directly.

Speaking with immediacy entails actively engaging in the here and now, expressing thoughts, feelings, and observations in a timely manner. It involves communicating openly and honestly about what is happening, without delay or avoidance. This approach allows for effective and efficient communication, as it reduces misunderstandings and promotes a clear understanding of the present reality.

When individuals speak with immediacy, they demonstrate a willingness to address concerns or conflicts promptly, without letting them linger or escalate. It fosters open dialogue, enables timely problem-solving, and promotes accountability and responsibility in communication.

Speaking with immediacy also facilitates effective feedback and constructive conversations. It allows individuals to provide timely input, share their perspectives, and express their needs or concerns in a timely manner. This promotes a culture of open communication, collaboration, and growth, as issues can be addressed promptly and necessary adjustments can be made.

Overall, speaking with immediacy means moving toward the present moment, actively engaging in communication, and addressing the current situation directly. It supports effective and efficient communication, facilitates problem-solving, and promotes a culture of openness and accountability.

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Explaining your business partner has decided he wants to merge your business-healthy foods-with former competitor beta burger. He’s told you about the advantages, but you’ve got your doubts. What possible disadvantages about the merger would you explain to your partner before you both make your decision?

Answers

Prior to deciding upon a merger with Beta Burger, certain potential drawbacks should be examined:

What possible disadvantages about the merger would you explain to your partner before you both make your decision?

Brand Misrepresentation: Merging with a formerrival could bewilder patrons regarding the values of your business. They may possibly associate it with cheap fast-food outlets, conversely deterring those desirous of eating healthy meals.

Cultural Contradiction: Should the cultures at both companies be contrary in nature, it could result in arguments and an absence of collaboration among workers from either side. This discord could then have an adverse impact on morale and productivity for the staff.

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A company had issued 10,000 bonds which had a par value of $50 and currently sold at $60. The company is expected to pay 10% interest for the next 5 years. In addition to this the preferred stock of the company is issued at $150 which a promised dividend of 8 per share. The common stock holders will receive $2 per share and this will grow T 8% for the first 3 years, 6% for the other 3 years and it will grow at 5% for indefinite period. Assume the tax rate is 35%. The capital structure of the company is composed of 600,000 common stock, 200,000 preferred stock and 100,000 is debt.
A) Find the cost of capital for each sources A) Find the weighted average cost of capital​

Answers

To calculate the cost of capital for each source, we'll consider the cost of debt, cost of preferred stock, and cost of common stock.

1. Cost of Debt:

The cost of debt is the interest rate the company pays on its debt. In this case, the company has issued bonds with a par value of $50, currently selling at $60, and a coupon rate of 10% for 5 years.

Cost of Debt = (Interest Expense / (Bonds Market Value - Bond Discount)) * (1 - Tax Rate)

Interest Expense = Bonds Market Value * Coupon Rate

Bonds Market Value = Number of Bonds * Bond Selling Price

Number of Bonds = 10,000

Bond Selling Price = $60

Coupon Rate = 10%

Tax Rate = 35%

Interest Expense = $60 * 10,000 * 10% = $60,000

Bonds Market Value = 10,000 * $60 = $600,000

Bond Discount = Par Value - Bond Selling Price = $50 - $60 = -$10 (Negative value because the bond is selling at a premium)

Cost of Debt = ($60,000 / ($600,000 - (-$10))) * (1 - 0.35) = $6,000 / $600,010 * 0.65 = 0.064997 (approximately 6.50%)

2. Cost of Preferred Stock:

The cost of preferred stock is the dividend rate the company pays on its preferred stock. In this case, the preferred stock is issued at $150 with a promised dividend of $8 per share.

Cost of Preferred Stock = Dividend / Preferred Stock Price

Dividend = $8

Preferred Stock Price = $150

Cost of Preferred Stock = $8 / $150 = 0.053333 (approximately 5.33%)

3. Cost of Common Stock:

The cost of common stock is calculated using the dividend growth model. The dividend is expected to grow at different rates for different periods.

First 3 years: Dividend Growth Rate = 8%

Next 3 years: Dividend Growth Rate = 6%

Indefinite period: Dividend Growth Rate = 5%

Cost of Common Stock = Dividend / Current Stock Price + Growth Rate

Dividend = $2

Current Stock Price = Market Price

Growth Rate = Dividend Growth Rate

Cost of Common Stock = $2 / Market Price + Growth Rate

Weighted Average Cost of Capital (WACC):

The weighted average cost of capital is the weighted average of the costs of each source of capital, considering their respective proportions in the capital structure.

WACC = (Weight of Debt * Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Common Stock * Cost of Common Stock)

Weight of Debt = Debt / Total Capital

Weight of Preferred Stock = Preferred Stock / Total Capital

Weight of Common Stock = Common Stock / Total Capital

Debt = $100,000

Preferred Stock = $200,000

Common Stock = $600,000

Total Capital = Debt + Preferred Stock + Common Stock = $100,000 + $200,000 + $600,000 = $900,000

Weight of Debt = $100,000 / $900,000 = 0.111111 (approximately 11.11%)

Weight of Preferred Stock = $200,000 / $900,000 = 0.222222 (approximately 22.22%)

Weight of Common Stock = $600,000 / $900,000 = 0.666667 (approximately 66.67%)

WACC = (0.111111 * 6.50%) + (0.222222 * 5.

The cost of capital for each source can be calculated by determining the cost of debt, cost of preferred stock, and cost of common equity. The cost of debt is 8.33%, the cost of preferred stock is 5.33%, and the cost of common equity is 14.77%.

To find the cost of capital for each source, we will calculate the cost of debt, cost of preferred stock, and cost of common equity.

The cost of debt can be calculated using the formula: Cost of Debt = (Annual Interest Payment / Bond Price) x 100%. In this case, the bond price is $60 and the annual interest payment is 10% of the bond's par value of $50, so the cost of debt is (0.10 * $50 / $60) x 100% = 8.33%.

The cost of preferred stock can be calculated using the formula: Cost of Preferred Stock = Dividend / Stock Price. In this case, the dividend is $8 per share and the stock price is $150, so the cost of preferred stock is $8 / $150 = 5.33%.

The cost of common equity can be calculated using the Dividend Discount Model (DDM) formula: Cost of Common Equity = Dividend / Current Stock Price + Growth Rate. The growth rate for the first 3 years is 8%, for the following 3 years is 6%, and for an indefinite period is 5%. The dividend for common stock is $2 per share. The current stock price can be calculated using the market value of the common stock ($2 * 600,000 = $1,200,000) divided by the number of shares (600,000), which equals $2 per share. The cost of common equity is $2 / $2 + 0.08 + 0.06 + 0.05 = 14.77%.

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Ben took some steps to use the concept of economies of scale in his company and failed. Which step caused his attempt to fail?
A.
he bought a machine that was fast in production
B.
he produced similar products on different machines
C.
he bought the raw materials in bulk at a discount
D.
he used labor specialization in his processes

Answers

Answer:

it is A i hope it helps you on the test

Answer:

a.) Bought machine that was fast in production

Explanation:

correct

Which of the following is not true of the critical path?
a. critical path can not be changed during the life of project.
b. critical path is always longest in a network.
c. critical path demands careful monitoring and controlling.
d. all of the answers are correct.\

Answers

The statement that not true of the critical path is critical path can not be changed during the life of project.

What is critical path?

Critical path is a method in project graph to determine the minimum time that necessary to complete the entire of project. The critical path can be calculated by sum the longest time of path from start to finish.

Since, it calculate the entire project, the critical path need to estimated all activities. But, often the unforeseen circumstances make the duration in one activities changed, and this will make the original critical path no longer relevant.

Thus, the critical path will not remain static and can be changed during the completion of project. So, the option A is not true.

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what is descriptive statistics?

Answers

Answer:

Descriptive statistics are brief descriptive coefficients that summarize a given data set, which can be either a representation of the entire or a sample of a population.

what is different between applied market research and basic market research

Answers

Basic Research or otherwise called as pure or fundamental research, is one that focuses on advancing scientific knowledge for the complete understanding of a topic or certain natural phenomenon, primarily in natural sciences. In a nutshell, when knowledge is acquired for the sake of knowledge it is called basic research.

Applied Research can be defined as research that encompasses real life application of the natural science. It is directed towards providing a solution to the specific practical problems and develop innovative technology.

While basic research aims at expanding knowledge by creating new theories and modifying existing ones, applied research is focused on providing practical solutions to specific problems by analyzing empirical evidence.
Basic market research is basically scientific knowledge, something you know based on information. Applied market research is digging deeper into the problem and looking for solutions.

how can I draw the circular flow of Income in an open economy?​

Answers

The unending flow of goods and services, income, as well as expenditure in an economy is referred to as the circular flow. It depicts the circular redistribution of income between the production unit and households. Land, labour, capital, as well as entrepreneurship are examples of these.

The circular flow of diagram's outer loop depicts the flow of factor services from households to firms, as well as the corresponding flow of payments for factors from firms to households.

The inner loop depicts the flow of goods and services from firms to households, as well as the flow of consumer spending from households to firms. The entire amount of money paid by firms as factor payments is returned to the firms by the factor owners.

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how can I draw the circular flow of Income in an open economy?

*WILL AWARD BRAINLIEST IF CORRECT ANSWER IS GIVEN!*

Rene is a new Processing Technician. You are explaining where she would find specific information in the EHR for her various work duties. Since one of her areas is R-ADT productivity, she will have access to the MPI and DSS but not the CIS. Identify the function that does not fall under the CIS.

Group of answer choices

A. Quality improvement
B. surgery
C. nursing
D. pharmacy

Answers

The Answer Choice that seems correct is
B. Surgery

Hope this helps you

The function that does not fall under the CIS or Clinical Information System for the new Processing Technician focused on R-ADT productivity is C. nursing.

What is nursing?

Nursing involves all the healthcare activities of nurses in the promotion of health, prevention of illness, and the care of ill, disabled, and dying patients.

Nursing also promotes a safe environment, conducts research, participates in shaping health policy and patient and health systems management, and education.

On the other hand, R-ADT productivity deals with the recording, admission, discharge, and transfer activities in the clinical information system.

Thus, the function that does not fall under the CIS or Clinical Information System is C. nursing.

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Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax’s sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $400,000. During 2021, Halifax sold merchandise on account for $12,500,000. Halifax merchandise costs it 70% of merchandise selling price. Also during the year, customers returned $613,000 in sales for credit, with $338,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. A) Prepare the entry to record the merchandise returns and the year-end adjusting entry for estimated returns. Note: Record the estimated returns at net amounts. B) What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded?

Answers

A)To record the merchandise returns: Sales Returns and Allowances $613,000 Accounts Receivable $613,000 To record the year-end adjusting entry for estimated returns:

Estimated Sales Returns and Allowances $625,000Allowance for Sales Returns and Allowances $625,000 The estimated sales returns and allowances of $625,000 is calculated as follows: Sales = $12,500,000 Estimated returns (5% of sales) = $625,000 Since $338,000 of the returns were for merchandise sold prior to 2021, we need to subtract this amount from the total returns to determine the amount of returns for merchandise sold during 2021: Returns for merchandise sold during 2021 = $613,000 - $338,000 = $275,000 The net amount of the estimated returns is calculated as follows: Estimated returns = $625,000 Less: Returns for merchandise sold prior to 2021 = $338,000 Net estimated returns for merchandise sold during 2021 = $287,000 The adjusting entry is recorded for the net estimated returns of $287,000. B) The year-end allowance for sales returns after the adjusting entry is recorded is calculated as follows: Refund liability at the beginning of the year = $400,000 Add: Returns for merchandise sold during 2021 = $275,000 Subtract: Net estimated returns for merchandise sold during 2021 = $287,000 Year-end allowance for sales returns = $388,000 Therefore, the year-end allowance for sales returns after the adjusting entry is recorded is $388,000.

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If Maverick Incorporated can reasonably estimate warranty costs as 2% of total monitor sales each year, what will the company need to do to account for the lifetime warranty in its financial statements

Answers

Answer:

Record it as a liability

Explanation:

If Maverick Incorporated can reasonably estimate warranty costs as 2% of total monitor sales each year, the company needs to record as per liability account for the lifetime warranty in its financial statements.

What is Liability?

Accounts payable, wages and taxes are examples of current responsibilities, which are fully owed for continuing costs. Current obligations will also include costs on long-term debt due in the subsequent year.

Liabilities include things like -

a bank loan

a mortgage loan

Amount due to suppliers (accounts payable)

Settled wages

tax debt

Liabilities are listed on a corporation balance sheet. The entire number of liabilities must match the contrast between the total quantity of assets and the total quantity of equity, according to the accounting equation.

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How is inflation being affected globally

Answers

Answer: Inflation is pushing up the prices of essential goods such as food, transport and utilities.

More than two-thirds of people around the world are feeling the squeeze, according to new research.

As the cost of living rises, the poorest in society are suffering most.

Explanation:

Interest will gather on all of the
following EXCEPT which one?
A. a cash purchase
B. an automobile loan
C. a home loan
D. a credit card loan

Answers

A cash purchase is the correct answer.
C. a home loan . Is the answer

The US Senate overwhelmingly passed the 2022 Defense Authorization Act. The $768 billion "Defense Authorization Act" not only exceeds the defense spending proposed by the Biden administration by $25 billion, but also increases the US defense budget by about 5% compared to last year.

Answers

The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.

1. The US Senate passed the 2022 Defense Authorization Act.

2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.

3. The total amount allocated for the Defense Authorization Act is $768 billion.

4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.

5. The Act represents a 5% increase in the US defense budget when compared to the previous year.

6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.

7. The Act was passed overwhelmingly, indicating strong support from the Senate.

8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.

9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.

10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.

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If you will become a manager or part of the management how will you implement the effective organizing strategies?​

Answers

Answer:

A well-developed strategy is easier to implement than one that has not received sufficient thought. Create strategies that can be effectively implemented by specifying clear objectives and projecting measurable milestones. Align these strategic steps with your company's overall mission.

Explanation:

Answer and Explanation:

A well-developed strategy is easier to implement than one that has not received sufficient thought. Create strategies that can be effectively implemented by specifying clear objectives and projecting measurable milestones. Align these strategic steps with your company's overall mission.

Clearly define the change and align it to business goals. ...
Determine impacts and those affected. ...
Develop a communication strategy. ...
Provide effective training. ...
Implement a support structure. ...
Measure the change process.

The HR department at Clearwater Electronics has been asked to develop a job description for a new managerial position in Dubai. Clearwater’s policy states that subsidiary managers should be employees from the parent company. What benefits does the company hope to realize from this ethnocentric approach?

Answers

dang no quema cuh

Explanation:

Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $55,000. The sausage system will save the firm $155,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 21 percent and the discount rate is 10 percent, what is the NPV of this project?

Answers

Answer:

The Net Present Value (NPV) of this project is $93,405.59.

Explanation:

Note: Find attached the excel file for the calculation of the NPV of this project.

Net present value (NPV) refers to the present value of cash inflows minus the present value of cash outflows over a specified period of time.

On its own, present value (PV) refers the value that a future sum of money or stream of cash flows has now or currently given a specified rate of return. The formula for calculating the PV is given as follows:

PV = FV / (1 + r)^n

Where,

FV = Future value

r = discount rate. This is given as 10% in this question

n = Relevant period, e.g. year

The above explanation and formula together with other stated formulae in the attached excel file is used in calculating the NPV of this project.

QUESTION ONE
ABC Ltd wishes to expand its business. On 31 Dec 2021, the company had
the following existing and proposed capital structures to support the
expansion programme.
1. The existing 8% debt capital has a book value of Ksh 50 000 000 and
matures in 10 years. The market value of debt at the close of business on
31 Dec 2021 was Ksh 40 000 000
2. A ten year loan of Ksh 300 000 000 is to be raised at an interest of 10
percent p.a. A cost of Ksh 20 000 000 will be incurred in raising this loan
3. A 12% preference stock capital stands in the books at Ksh 100 000 000
( 1 000 000 shares) and has a total market value of Ksh 150 000 000.
4. There are 40 000 000 ordinary shares with a current market price of Ksh
1500 each. The firm’s expected earnings per share (EPS) stand at Ksh
200, its growth rate is 6% and has a dividend payout of 60%.
5. The company plans to issue 10 000 000 ordinary shares at a market price
of Ksh 1 500 per share. The cost of floating the shares is estimated at Ksh
10 000 000.
Required:
i) Firm’s current weighted average cost of capital (10 marks)
ii) Firm’s expected weighted average cost of capital after the expansion
programme (i.e. marginal cost of capital) (5 marks)
QUESTION TWO
An investor intends to place Ksh 112,000,000 in the 91 days Treasury bill at a quoted rate/yield of 7.65%
p.a.
Required:
a) Compute the investor’s return, assuming that he is withholding tax-payer
b) Compute the investor’s return, assuming that he is non-withholding taxpayer (6 marks)

Answers

Answer:

rat

Explanation:

9-13. LinkedIn targets a specific demographic: working professionals. They tend to be older and better educated. Why might advertisers be more interested in this group over others?

Answers

Answer:

Explanation:

Theme 3: Education ... most engaged, and you can reach a professional ... people that are most relevant for your content goals and your business.

Isaiah is a Financial Quantitative Analyst for a major stock investment company. What does Isaiah do on a daily basis as a part of his job?

He researches, analyzes, and summarizes information about fraud.
He assesses financial situations using mathematical models.
He analyzes tax information using mathematical formulas.
He manages the paperwork for buying and selling securities.

Answers

Isaiah is a Financial Quantitative Analyst for a major stock investment company. He assesses financial situations using mathematical models. Therefore Option B is correct.

What is a Financial Quantitative Analyst?

A quantitative analyst, also known as a "quant," is a professional who uses statistical and mathematical techniques to solve financial and risk management issues. In order for businesses to make financial and business decisions on things like investments, pricing, and other things, they create and implement complicated models.

An expert in financial quantitative analysis advises organizations and people who are making investment decisions. In order to locate profitable investments for their clients, they examine and assess available investment alternatives.

To create trading algorithms and computer models, financial quantitative analysts process a wide range of data. They just use numbers to determine their investments.

Hence, He assesses financial situations using mathematical models.

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in 200 words do you think that Microsoft should decline to do business with the likes of ExxonMobil unless they also adopt ambitious sustainability targets as some critics have suggested?

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Answer:

Explanation:

The debate over whether tech companies such as Microsoft should refuse to do business with companies that do not adopt ambitious sustainability targets, like ExxonMobil, is a complicated issue. Some critics argue that companies such as Microsoft have the power to make a significant impact by using their influence to push for more sustainable practices across industries.

On the other hand, it can be argued that businesses should not be penalized for not meeting sustainability targets if they are not legally required to do so. Additionally, it may not be fair to hold tech companies to a higher standard than other industries that also contribute to environmental degradation.

Furthermore, refusing to do business with companies like ExxonMobil could have negative consequences, such as harming the economy and increasing unemployment. It may be more effective for companies like Microsoft to work with ExxonMobil to develop sustainable practices and gradually transition to more environmentally-friendly operations.

Overall, while it is important for companies to prioritize sustainability and work towards reducing their environmental impact, it is not necessarily productive or fair to refuse to do business with those who are not yet meeting ambitious sustainability targets. Instead, collaboration and partnership between industries may be a more effective approach to achieving long-term sustainability goals.

The amount that the shareholders have invested into the company is called: Multiple Choice Retained earnings. Accumulated other comprehensive income. Paid-in capital. Shareholders’ equity.

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You got to chose who’s your real friend to help you with home work

You purchased 500 shares of A.M.J. Inc. common stock one year ago for $50 per share. You received a dividend of $2 per share today and decide to take your profits by selling at $54.50 per share. What is your holding period return?a. 13.0%b. 9.0%c. 6.5%d. 4.0%

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Holding period return is 13.0%. Holding length return (or yield) is the whole return earned on an investment throughout the time that it has been held.

What is the difference between preserving duration return and expected return?

The return from investing in an asset over a exact length is referred to as the conserving length return. Realized return refers to a return carried out in the past, and anticipated return refers to an predicted return over a future period.

Holding Period Return Formula

Capital Appreciation = Ending Value – Beginning Value.

Holding Period Return (HPR) = [(Ending Value — Beginning Value) + Income] / Beginning Value.

HPR = Capital Gains Yield + Dividend Yield.

Annualized HPR = (1 + Holding Period Return\() ^ {(1 / t)}\) – 1.

The following is how the holding period return is calculated:

\(\mathrm{Earnings + \dfrac{End \ of \ period value - Initial \ value}{Initial \ value} }\)

\(= 2 + \dfrac{54.5-50}{50}\)

\(= \dfrac{6.5}{50}\)

= 13%

The holding term return is therefore 13%. A conserving period is the amount of time the investment is held by an investor, or the length between the buy and sale of a security.

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Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $156,000. The machine's useful life is estimated to be 20 years, or 110,000 units of product, with a $1,000 salvage value. During its second year, the machine produces 4,400 units of product. Determine the machines' second-year depreciation under the straight-line method.

Multiple Choice

$7,800.


$6,240.


$6,200.


$7,850.


$7,750.

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Answer:

Explanation:

Annual depreciation=(cost-salvage value)/useful life

Annual depreciation =(156,000-1000)/20

Annual depreciation =$7750/year

Hence Depreciation for second year=$7750.

Can some of please help me with this question?

In USA, amazon can manufacturer Electric Mug? If so, how? if not which places in machina, USA Electric Mugs are made?

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It is possible for Amazon to produce electric cups in the USA. Uncertainty surrounds whether Amazon now produces electric cups.

If not, where are USA Electric Mugs created in machina?

If so, they might have factories or other manufacturing facilities spread out across the nation. Alternately, there might be further businesses inside the USA that produce electric mugs.

You can perform an online search or get in touch with companies that produce electric mugs for further information to learn where in the USA electronic mugs are created.

There are several manufacturers in the USA, but China is where most electric mugs are made. You can look through internet directories or get in touch with nearby businesses that specialise in making electric appliances to locate a producer in the USA.

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Please select the word from the list that best fits the definition
Level of a woman's income relative to that of a man.

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There are different ways to define a term. Th word from the list that best fits the definition is Wage gap

What is wage gap?

This is a term that refers to the level of women's income that is relative to that of men.

The wage gap exist due to the Differences in pay that is due to occupational segregation where there is more men in higher paid industries and women in smaller paid industries.

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Answer:

Wage gape

Explanation:

2023-2024 EDGE

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