Describe bill’s children interest in the property

Assignment Help Financial Management

Reference no: EM131982040

1. Bill Butler established an irrevocable trust and transferred his ski house to the trust. The ski house was located in Maine and Bill lived in Rhode Island. The terms of the trust provided that Bill’s wife Lori had the right to use the home during her lifetime, or to rent the home out. Following Lori’s death, the house would pass outright to his children if they survived Lori. Bill filed a gift tax return reporting the transfer of the house to the trust.

Which of the following best describe Bill’s children’s interest in the property?

A. Bill’s children have a vested remainder interest in the home.

B. Bill’s children have a contingent remainder interest in the home.

C. Bill’s children are current income beneficiaries of the home.

D. Bill’s children have no interest in the home.

2. The Tire Treader needs to raise $25 million to build a new manufacturing facility. The estimated direct costs of floating an equity issue to fund this project are $615,000 and the underwriting spread is 8.6 percent. What is the minimum number of shares of stock the firm must sell to reach its financing goal if the offer price is set at $28.50 a share?

983,339.00 shares

919,430.00 shares

937,816.00 shares

955,179.00 shares

Reference no: EM131982040

Questions Cloud

Generate an icmp echo request packet : You need two VMs on the same LAN. From VM A, you ping an IP X. This will generate an ICMP echo request packet. If X is alive, the ping program will receive

What should be the market price of this stock today : What should be the market price of this stock today if investors' required rate of return is 13 percent?

How would their decision process be comparable to yours : What were the most important features and functions of the purchase? In the end, what feature led (will lead) you to your final decision?

How many square kilometers of crop should community plant : How many square kilometers of each crop should the community plant in order to maximize profits? What is the maximum profit?

Describe bill’s children interest in the property : Which of the following best describe Bill’s children’s interest in the property?

Identify one stock from each of the two stock exchanges : Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges.

What is the standard deviation of shields returns : Returns for the Shields company over the last 3 years are shown below. What's the standard deviation of Shields' returns?

What is vandell pre-acquisition levered cost of equity : What is Vandell’s pre-acquisition levered cost of equity? What is its unlevered cost of equity?

What are five most important concepts that you have learned : As you complete this course, look back on the experience. What are the five most important concepts that you have learned from the course?

User Account

All Pages