Chapter 13 Answers to Exercises 1. Identify three objects that might belong to each of the following classes: a. Automobile b. NovelAuthor c. CollegeCourse The students will have a variety of answers for these questions. Some examples might be: a. myRedChevroletCamaro‚ theBlackfordMustangWithTheDentThatBobDrives‚ thePorschee911ThatDonaldTrumpOwns b. Terry Brooks‚ Steven King‚ Ray Bradbury c. English Composition‚ Calculus‚ Physics 2. Identify three different classes that might contain
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Date: July 16‚ 2012 U.S Congress Washington DC 20510 Dear Legislators: It is said by most scholarly articles and books they over 50 percent of marriages in the US end in divorce. Although this may not be the truth for some marriages‚ it is no secret that the California and even national divorce rate is at an all time high. Divorce is also the main cause of the degradation of the modern American family. Divorce can have lasting effects on all parties involved. It is a lasting and trying situation
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$40 and an expiration date in three months. The current stock price is $41 and the contract is on 100 shares. What have you committed yourself to? How much could you gain or lose? You have sold a put option. You have agreed to buy 100 shares for $40 per share if the party on the other side of the contract chooses to exercise the right to sell for this price. The option will be exercised only when the price of stock is below $40. Suppose‚ for example‚ that the option is exercised when the price is
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on the date of acquisition. (b) The net assets will be “marked up” to fair value and goodwill will be recorded at the end of the fiscal year when the consolidated financial statements are prepared through the use of a consolidated worksheet. 5. Puncho will record the net assets at their fair value of $800‚000 on its books. Also‚ Puncho will record goodwill of $100‚000 ($900‚000 – $800‚000) resulting from the excess of the price paid over the fair value. Semos will record the removal of its
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Tax 4001 Spring 2011 Homework Set #5 Solution PAGE 1 # 1 a) Amount Realized $37‚500 Basis (45‚000) Real Loss (7‚500) Recognized Loss $0 because personal use asset c. The real loss is $0. b) Same as (a). Like-kind exchange rules do not apply to personal-use assets c)Her recognized loss is $0. Since the form of the transaction is a theft‚ the recognized loss is the lesser of the adjusted basis or the fair market value of the asset‚ reduced by the insurance proceeds that she
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Solutions Guide: A3. (Net advantage to leasing) A firm is considering leasing a computer system that costs $1‚000‚000 new. The lease requires annual payments of $135‚000 in arrears for 10 years. The lessee pays income taxes at a 35% marginal rate. If it purchased the computer system‚ it could depreciate it to its expected residual value over 10 years. The lessee’s cost of similarly secured debt is 10% and its WACC is 15%. a. Calculate the net advantage to leasing assuming zero residual value.
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g = [0+12.5++ 20+12+8]/4 %=8% (Assumption: In this calculation‚ the growth rates significantly higher than 20% and negative figure have been ignored.) C8: Using CAPM: KE’=3.2%+0.91*5.5%=8.21% C9: Using DGM formula: P’=D1/ (KE’-g) =1.06*(1+8%)/(8.21%-8%)=$545 In Nike’s case‚ when Joanna Cohen calculated the WACC of Nike‚ she made several mistakes and led to a wrong estimate of the cost of capital. The first mistake comes to the book value of equity used in calculating WD. Nike became a publicly traded
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She used to wake him up in the morning and get him ready for school. Then she would fetch his wooden slate‚ a tiny earthen inkpot and a red pen. After a breakfast she accompanied him to the school. She carried several chapattis for the village dogs. She used to stay in the temple that was attached to school. After school hours they would walk back together. The second phase of their relationship began with their being called to the city. That was a turning point in their friendship. He used to go
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GREE‚ Inc. http://www.casehero.com/gree-inc/ In 2012‚ GREE Inc. was among the world’s most lucrative mobile social gaming companies. Its success in Japan was due both to the in-house games and also to the development platform it provided to third-party game designers. Its greatest challenge ended up being to replicate the prosperity of this two-pronged strategy in marketplaces around the globe‚ where it needed to contend not only with lots of other game developers (e.g. Zynga)‚ but additionally using
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Consider an infinitesimally small section of the ring that subtends an angle and is located at angle. The length of this infinitesimally small section of the ring is. Since the linear charge density of the ring depends on as ‚ the total charge contained in this infinitesimally small section of the ring is given by‚ The electric field generated by this infinitesimally small section of the ring at point O‚ as depicted in the figure‚ is then given by‚ As seen from the
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