Chapter 1 Starting up a Proprietorship Proprietorship-an unincorporated business owned by one individual Easy to start Three advantages o Easily and inexpensively formed o Few government regulations o Its income is not subject to public taxation Three limitations o May be difficult for them to obtain capital needed for growth o Proprietor has unlimited personal liability o Life of a proprietorship is limited to the life of the founder Used primarily for small businesses Only account for
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of Capital Homework 1. Suppose Garageband.com has a 28% cost of equity capital and a 10% cost of debt capital. The firm’s debt-to-equity ratio is 1.5. Garageband is interested in investing in a telecomm project that will cost $1‚000‚000 and will provide $600‚000 annually for the next 4 years. Given the project is an extension of their current operations‚ what is the net present value of the this project if the corporate tax rate is 35. D/E = 1.5‚ D/V = 1.5/2.5‚ E/V = 1/2.5‚ re = 28%‚ rd = 10%
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Question #1: Use the table of US Treasury bond prices for settle on May 15‚ 2010 to derive the discount factors for cash flows to be received in 6 months‚ 1 year‚ and 1.5 years. Bond Price 4 ½ s of 11/15/2010 102.1581 0s of 5/15/2011 99.6012 1 ¾ s of 11/15/2011 101.6435 Discount Factors (Use four decimal points and not in 32nd): D(0.5) = _________________0.9991 D (1.0) = _________________0.9960 D (1.5) = _________________0.9903 Show your work or formula. (100+4.5 /2) d(0
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1. Identify an accounting scandal at a corporation that has resulted in a loss of reputation to the accounting profession. Explain the crime(s) committed. In early 2008 Lehman borrowed large amounts to fund its investing in the years leading to its bankruptcy in 2008‚ “a process known as leveraging or gearing”. A large part of their investments were towards housing market‚ making it vulnerable to a downturn in that market. This firm generated large profits during the housing boom‚ this place them
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True / False Questions 1. The liability of sole proprietors is limited to the amount of their investment in the company. FALSE AACSB: Communication Abilities Bloom’s: Knowledge Difficulty: Easy Learning Objective: 1-3 2. General partners have limited personal liability for business debts in a limited partnership. FALSE AACSB: Communication Abilities Bloom’s: Knowledge Difficulty: Medium Learning Objective: 1-3 3. The separation of ownership and management is one
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2014 THEO 202-C05 LUO Test Quiz 1 Started 2/17/14 5:02 PM Submitted 2/17/14 5:16 PM Status Completed Attempt Score 45.5 out of 70 points Time Elapsed 14 minutes out of 15 minutes. Instructions Covers this week’s textbook readings Open-book‚ open-Bible‚ open-notes 15-minute time limit 20 multiple-choice and true/false questions Do not click the BACK button because this will lock you out of the quiz. The timer will continue if and when you leave this quiz. Question 1 0 out of 3.5 points The
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Corporate Financial Theory SEMESTER: Summer Session II Aug 2014 Coursework 1 Chapters 4‚5‚7‚8‚9 PART 1 SELF-TEST QUESTIONS 1. Casino Inc. is expected to pay a dividend of $3 per share at the end of year-1 (D1) and these dividends are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 18%‚ what is current value of the stock today? a. $25 b. $50 c. $100 d. $54 2. MJ Co. pays out 60% of its earnings as dividends. Its return on
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Part 1 of 2 - True & False 17.0 Points Question 1 of 40 1.0 Points Practically all innovative ideas become successful products. True False Question 2 of 40 1.0 Points Flexible manufacturing technologies have increased the importance of production economies of scale. True False Question 3 of 40 1.0 Points Innovation and new technology have caused the product life cycle to become longer as better quality products are being produced. True False Question
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7/14/2012 Time Spent: 1 h ‚ 12 min ‚ 15 secs Points Received: 30 / 30 (100%) Question Type: # Of Questions: # Correct: Multiple Choice 5 5 Grade Details - All Questions 1. Question : (TCO B) There are two basic ways to compensate physicians in an IPA model HMO: _____. Student Answer: capitation and global fees capitation and fee for service salary and bonuses fee for service and salary Instructor Explanation: Textbook Chapter 1‚ Week 1 Points Received:
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Question 1 of 20 1.0/ 1.0 Points A scatterplot allows one to see: A.whether there is any relationship between two variables B.what type of relationship there is between two variables C.Both (a) and (b) are correct D.Neither (a) nor (b) is correct Answer Key: C Question 2 of 20 1.0/ 1.0 Points The length of the box in the boxplot portrays the A.mean B.median C.interquartile range D.range Answer Key: C Question 3 of 20 1.0/ 1.0
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