Corporations of types are subject to corporate income tax

Assignment Help Financial Management
Reference no: EM131047596

Which of the following statements is CORRECT?

a. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.

b. One of the advantages of the corporate form of organization is that it avoids double taxation.

c. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., "one person, one vote."

d. Corporations of all types are subject to the corporate income tax.

e. It is easier to transfer one's ownership interest in a partnership than in a corporation.

Reference no: EM131047596

Questions Cloud

Any additional cost from the university budget : Suppose you would like to fund the salary of a professor of finance at your college so that the university could hire an additional faculty member without incurring any additional cost from the university budget. how much money must you donate to the..
The finance charges for a loan may include : The finance charges for a loan may include
Estimated annualized return based on these predictions : A 7-year, 5 percent coupon bond has a yield to maturity of 4 percent. A portfolio manager with a four-year horizon needs to forecast the total return on the bond over the coming four years. Calculate the estimated annualized return based on these pre..
Contingent immunization policy with your bond portfolio : You are following a contingent immunization policy with your bond portfolio. The targeted minimum annual return is 4 percent annual return for 5 years. Portfolio value is $300 million. The current interest rate is 5 percent. How much money you can lo..
Corporations of types are subject to corporate income tax : One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. One of the advantages of the corporate form of organization is that it avoids double taxation. Corporations of all types are subject to the co..
Price of the bond using both duration and convexity : Calculate the duration and convexity of a 4-year, 4 percent coupon bond with a face value of $1000. Assume that the yield on this bond is 5 percent. If the interest rates decrease 10 basis points, what would be the approximate change in the price of ..
Price of the bond using duration approximation : Calculate the duration of a 4-year, 4 percent coupon bond with a face value of $1000. Assume that the yield on this bond is 5 percent.  If the interest rates decrease 10 basis points, what would be the approximate change in the price of the bond usin..
How can the manager immunize the obligation : An insurance company must make a payment of $5,788.125 in 3 years and another $12,762.82 in 5 years. The market interest rate is 5 %. The company’s portfolio manager wishes to fund the obligation using 2-year zero-coupon bonds and perpetuities paying..
The travel costs can melissa deduct as business expenses : Melissa recently paid $400 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $250 fee to register for the conference, $300 per night for three night’s lodging, $200 for m..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Fundamentals of corporate finance tenth edition

Review the material in Chapter 23 on hedging with swap contracts and the role of the swap dealer. Then refer to Figure 23.6 on page 764 in your course text Fundamentals of Corporate Finance tenth edition.

  Discount rate-calculate the present value of annuity

You will receive $5,000 per year, every year for the next five (5) years, beginning at the end of this year. If you use 6% as your discount rate, calculate the present value of this annuity.

  Firms cost of debt and the cost of equity capital

Suppose Mr. Thomas, president of your company, has hired you to determine the firm's cost of debt and the cost of equity capital. Based on the most recent financial statements, the company's total liabilities are $8 millions. Total interest expense f..

  Made a gain or loss due to the exchange rate change

Your Boston headquartered manufacturing company, Wruck Enterprises, obtained a 50 million-peso loan from a Mexico City bank last month to fund the expansion of your Monterrey, Mexico plant. When you took out the loan the exchange rate was 10 US cents..

  The degree of pretax cash flow operating leverage

The degree of pretax cash flow operating leverage at Rackit Corporation is 2.2 when it sells 104,000 units of its new tennis racket and its EBITDA is $85,000. Ignoring the effects of taxes, what are the fixed costs for Rackit Corporation?

  Should treasurer choose forward hedge or put option hedge

Using any of the available information, should the treasurer choose the forward hedge or the put option hedge? Show your workings.

  Defines the value of a firm

Which of the following defines the value of a firm?

  What will be the market value of the firms common equity

The Jimmer Company has a historical growth in its free cash flows of 4% with little variability. With the addition of a new plant and equipment, however, you expect that free cash flows will grow 2% in year 1, 4% in year 2, 8% in years 3 to 5, and 5%..

  Calculate your portfolios new beta

Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 2.15. Now, suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1...

  What are the transaction costs in index arbitrage activity

Compute the ‘fair’ value of the two nearest to expiration futures contracts on the S&P500 Index (SPX) using SPX as the underlying asset. What are the transaction costs in index arbitrage activity?

  The investment timing decision relates

The investment timing decision relates to:

  Establish a coverdale education

The Jones’ want to save for their child’s education. They have four options:   (1) Establish a 529 plan; (2) Establish a custodian Roth IRA; (3) Establish a Coverdale Education IRA; (4) Establish a “regular” non-tax deferred account.   State which on..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd