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Q. What do you mean by Inflation?
Predicts of future inflation of sales prices and variable costs should be prepared Therefore that a nominal NPV evaluation is able to be undertaken. This evaluation must employ a nominal after tax cost of capital it isn't stated whether the 12% after-tax cost of capital is in nominal or real terms. Sales price is presumed to be constant in real terms but in practice substitute products are likely to occur leading to downward pressure on sales price and sales volumes.
Constant fixed costs
The supposition of constant fixed costs should be verified as being acceptable. Sales volumes are predict to increase by 40% and this increase may result in an increase in incremental fixed costs.
Information concerning the capital structure of Piper Corporation is as follows: December 31, 2011 2010 Common stock 150,000 shares 150,000 shares Convertible preferred stock 15,00
TYPES OF GIFT BY WAY OF A WILL (a) A special (or specific) legacy is a testamentary gift of a particular part of the property of the testator, which identifies that part by a s
On January 1, 2010, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2016, Jacob retires 20% of these bonds by buying them on the open m
PROVABLE DEBTS All debts and liabilities present or future, certain or contingent, are provable in bankruptcy, except: 1) Claims for unliquidated damages in tort; 2) Debts
Illustration of Admission of a new partner XYZ have been trading as equal partners having capital contributions of £300,000, £250,000 and £200,000 respectively. They agreed
with the following data for a 60 percent activity, prepare a flexible budget for production at 80 percent and 100 percent activity production at 60% activity - 6000 units
Day Corporation purchased a patent on January 1, 2012 for $360,000. The patent had a useful life of 10 years at that date. In January of 2013, Day successfully defends the patent a
Determine the Various forms of business organizations There are various forms of business organizations: o Business-organization's objective is to earn a profit o Sole Pr
Look closely at the stock market in Fiji. Do a trend analysis of the stock market based on the following: ? The function of the stock market ? The trend analysis of the number of
Do liabilities fall under debtors
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