Answer: The primary disadvantage of the corporate form is the double taxation to shareholders of distributed earnings and dividends. Advantages include: limited liability; ability to raise capital; and unlimited life 【Agency Problem】 Who owns a corporation? Describe the process whereby the owners control the firm’s management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context‚ what kinds of problems can arise? Answer: In the
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expanded abroad‚ through an international subsidiary of AD (AD International). At the end of 1998 AD was the largest independent wholesaler of automotive parts in France and even in Europe. The outlook in the auto market is favorable with a growth of 2 to 3% in the foreseeable future due to the growing number of cars in circulation‚ an aging car fleet‚ increased technical complexity of car parts‚ new legislation requiring more frequent vehicle inspections and
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Kristine Palisano HW week 6 Individual-work 2 August 24‚ 2013 1. Describe the general characteristics of a future contract. How does a clearinghouse facilitate the trading of financial futures contracts? 2. How does the price of a financial futures contract change as the market price of the security it represents changes? Why? 3. Explain why some futures contracts may be more suitable than others for hedging exposure to interest rate risk. 4. Will speculators
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Infancy: Socioemotional Development I. | Attachment: The Basic Life Bond | | | Define attachment. bond between caregiver and child (or 2 people) | | | What time period categorizes toddlerhood? (1-2 yrs. old) | | | Contrast Watson’s and Bowlby’s views on attachment * John Watson: warned about the danger of too much mother love. Wants babies to be cared for by many different people * John Bowlby: "no such thing as too much motherly love" | | | What did Lorenz
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Part 1: Review your notes on this presentation‚ then respond to the following questions: 1. Discus why it is important to adapt curriculum when working with children with special needs? It is important to adapt curriculum when working with children with special needs for many reasons. One‚ is that the children are a different levels of ability‚ so it is important to incorporate activities that can meet everyone’s needs by being able to engage in multiple ways. It is also important to be able to
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Discussion Question: Financial Statements • In what ways do the elements of the four financial statements interact with one another? How might changing one of the financial statements affect the other financial statements? Why is it essential to understand the relationship between the financial statements? The financial statements of an entity consist of: - Statement of Financial position - Statement of comprehensive income - Statement of changes in equity; and - Statement of Cash Flows In
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reflect the true value of JetBlue. Assumptions made in Exhibit 13 There were several valuation techniques used by analysts and underwriters to value an enterprise’s share‚ they are respectively the Discounted Cash Flow Method (DCF) for instance‚ Free Cash Flow to Equity (FCFE)‚ Free Cash Flow to Firm (FCFF)‚ and Dividend Discount Model‚ and the Relative Valuation Techniques‚ for instance Price Earnings Ratio (P/E) and Price Book Value Ratio (P/BV). Dividend Discount Model requires input of next year’s
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Cash is the life blood of a business and it can’t operate without it. Survival of a business depends upon its ability to meet liabilities when they fall and thus requires cash. When considering the overall cash flow of the yacht business we can see that it is suffering from cash flow problems ever since the business started. Although the monthly deficit has been decreasing every month due to the increased sales‚ the overall balance carried forward is gradually going up. It would be advisable
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purchasing a smaller chain‚ South Georgia Parts (SGP). Brau’s analysts project that the merger will result in the following incremental free cash flows‚ tax shields‚ and horizon values: Years 1 2 3 4 Free cash flow $1 $3 $3 $7 Unlevered horizon value 75 Tax shield 1 1 2 3 Horizon value of tax shield 32 Assume that all cash flows occur at the end of the year. SGP is currently financed with 30% debt at a rate of 10%. The acquisition would be made immediately‚ and if
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In the article “An Analysis of Patterns from the Statement of Cash Flows”‚ the writers Benton E. Gup‚ William D. Samson‚ Michael T. Dugan‚ Myung J. Kim‚ and Thawatchai Jittrapanun discuss some of the various aspects of the Statement of Cash Flows. Prior to 1987‚ the Statement of Cash Flows was not a mandatory portion of financial statements (73). On a Statement of Cash Flows‚ there can be three types of cash flows: operating activities‚ financial activities‚ and investing activities; these activities
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