The adjusted present value method (APV), the flow to equity (FTE) method, and the weighted average cost of capital (WACC) method produce equivalent results, but each can have difficulties making computation impossible at times. Given this, which one of these is a correct statement?
The WACC method is preferred, when evaluating a leveraged buyout.
The APV method is the most commonly used method in actual practice.
Use the FTE method, when the level of debt is known over a project's life.
Use the WACC method, when the level of debt is known over a project's life.
The WACC method is appropriate, when the target debt-to-value ratio applies over a project's life.

Answers

Answer 1

The WACC method is appropriate when the target debt-to-value ratio applies over a project's life is a correct statement regarding the adjusted present value method (APV), the flow to equity (FTE) method, and the weighted average cost of capital (WACC) method.

WACC is the weighted average of a company's cost of equity and cost of debt that is proportional to its respective capital structure. The WACC is used as a benchmark rate for a company's capital expenditure projects. WACC is also the minimum acceptable return that a company must earn on an existing asset base to create value for its shareholders.

The present value method is a financial analysis tool that discounts future cash flows to their current value. The method calculates present value by determining the future cash flows that will result from an investment, then dividing that total by a discount factor. The discount factor is often a weighted average cost of capital or the hurdle rate used by the investment firm.

Learn more about WACC: https://brainly.com/question/25566972

#SPJ11


Related Questions

the term tax shield refers to the amount of income tax saved by deducting depreciation for income tax purposes. assume that supreme company is considering the purchase of an asset as of january 1, 2017. the cost of the asset with a five-year life and zero residual value is $110,000. the company will use the straight-line method of depreciation. supreme's income for tax purposes before recording depreciation on the asset will be $49,500 per year for the next five years. the corporation is currently in the 25% tax bracket. required: calculate the amount of income tax that supreme must pay each year if the asset is and is not purchased.

Answers

If Supreme purchases the asset, the tax shield will be $5,500 per year.

Define the term income tax?

Income tax is a tax that is imposed by the government on individuals or entities based on their income or profits.

Annual Income for tax purposes: $49,500

Tax rate: 25%

Income tax: $49,500 x 25% = $12,375

The amount of income tax is calculated as follows:

Annual Income for tax purposes: $49,500 - $22,000 = $27,500

Tax rate: 25%

Income tax: $27,500 x 25% = $6,875

Tax Shield = Income tax without asset - Income tax with asset

Tax Shield = $12,375 - $6,875

Tax Shield = $5,500

Therefore, if Supreme purchases the asset, the tax shield will be $5,500 per year.

To know more about tax, visit:

https://brainly.com/question/30157668

#SPJ1

Which of the following is an appropriate discretionary fiscal policy to use when the economy is in a recession?a. Increased government spendingb. Higher taxesc. A balanced-budget reduction in both spending and taxesd. An expansion in the money supply

Answers

The appropriate discretionary fiscal policy to use when the economy is in a recession is increased government spending.

What is Discretionary Fiscal Policy? Discretionary fiscal policy is a kind of government policy that changes government expenditure or taxes to stabilize the economy. Government bodies use this policy to alter the pattern of aggregate demand in order to stabilize the economy. During a recession, the government should increase its expenditures, and during a boom, it should decrease its expenditures. On the other hand, when the economy is over-heated, the government should raise taxes in order to decrease demand.

Let's look at the given options:a. Increased government spending is the correct choice to be used when the economy is in a recession.b. Higher taxes is incorrect because it will reduce demand further.c. A balanced-budget reduction in both spending and taxes is incorrect because it reduces the overall spending that will not help in stabilizing the economy.d. An expansion in the money supply is a monetary policy, not a fiscal policy, which is used to reduce interest rates in order to increase spending. It is not used to stabilize the economy when it is in recession.

Learn more about discretionary fiscal policy: https://brainly.com/question/17438320

#SPJ11

since harley-davidson owners share a set of values that differ in certain respects from those of the overall culture, they would be classified as a(n)

Answers

Since Harley-Davidson owners share a set of values that differ in certain respects from those of the overall culture, they would be classified as a subculture.

A subculture is a distinct group of people with a unique set of characteristics that distinguishes them from the larger culture to which they belong. They are united by a common interest or activity, and they often have their own language, style, and symbols. A subculture can form around almost anything, from music to fashion to motorcycles.There are many subcultures in the world, and Harley-Davidson owners are one of them. They share a love of motorcycles, and they value freedom, individuality, and the open road. Harley-Davidson owners often form clubs or groups, and they attend events like rallies and rides. They also have their own slang and style, with leather jackets, boots, and bandanas being common attire.Overall, subcultures can be a powerful force in society. They allow people to connect with others who share their interests and values, and they often have a strong sense of community and identity.

Learn more about Harley-davidson here:https://brainly.com/question/30076936

#SPJ11

during which stages of an audit examination are auditors required to exhibit the appropriate use of professional judgment?

Answers

The stages of an audit examination during which auditors are required to exhibit the appropriate use of professional judgment are planning, internal control evaluation, risk assessment, evidence gathering and evaluation, and reporting.

Auditors are required to exhibit the appropriate use of professional judgment throughout all stages of an audit examination. The use of professional judgment is essential in planning the audit, identifying risks, assessing materiality, evaluating the sufficiency and appropriateness of audit evidence, and forming conclusions. In the planning stage, auditors need to use professional judgment to determine the scope of the audit and the areas of the financial statements that require the most attention. During the risk assessment stage, auditors need to use professional judgment to identify and evaluate the risks of material misstatement in the financial statements.

Learn more about Auditing: brainly.com/question/7890421

#SPJ11

Determine which of the items below would show up on a monthly bank statement.
- Deposits and other credits increasing the account during the period
- Checks and other debits decreasing the account during the period
- Beginning-of-period balance in the account
- End-of-period balance in the account

Answers

A monthly bank statement is a report that details all transactions made in a bank account during a specific period of time. End-of-period balance in the account is one of the items that would show up on a monthly bank statement.

A bank statement provides information regarding a bank account that an account holder uses to manage their money. Banks generally issue monthly statements to their customers. The statement includes a list of all transactions made during the month, as well as the beginning and ending balances.The statement also shows the beginning balance of the account, the deposits made during the month, the withdrawals made during the month, and the end-of-period balance in the account. Checks, automated teller machine (ATM) transactions, and electronic transfers are all examples of transactions that may be found on a bank statement. The statement also shows any fees charged for account management, such as overdraft fees, monthly service fees, or ATM fees.Bank statements serve as an important financial record that individuals can use to manage their money. Account holders can compare their receipts and their bank statements to ensure that all transactions are accounted for and to check for any discrepancies.
A monthly bank statement typically includes various details regarding your account activity within a specific period. One of the items that will show up on a monthly bank statement is the end-of-period balance in the account. This balance represents the total amount of money in your account at the end of the statement period, after taking into account all the deposits, withdrawals, and other transactions that occurred during that time. The end-of-period balance helps you keep track of your financial progress and ensures that you are aware of your current financial situation.

For search more questions on bank statement

        https://brainly.com/question/15525383

        #SPJ11

Hi! A monthly bank statement provides an overview of your account activity, including deposits, withdrawals, fees, and interest earned. In relation to the end-of-period balance, the items that would show up on a monthly bank statement are:

1. Beginning balance: The account balance at the start of the month.
2. Deposits: Money added to the account, such as salary, transfers, or cash deposits.
3. Withdrawals: Money taken out of the account, like ATM withdrawals, check payments, and electronic transfers.
4. Fees: Any charges imposed by the bank, including account maintenance, overdraft, or ATM fees.
5. Interest earned: If the account earns interest, this amount will be included.
6. End-of-period balance: The final balance in the account after accounting for all transactions during the month.

These items provide a comprehensive summary of your account's financial activity, allowing you to track your spending, ensure accuracy, and maintain a healthy financial status.

to learn more about : monthly bank statement

https://brainly.com/question/28079535

#SPJ11

a computer hardware company is interested in decreasing its sales force turnover as it seems to be higher than the industry average. management looks at the incentives for the sales force and realizes that it takes, on average, sixty days to close a sale. currently there is no base salary for the sales force and they are paid only commission on their total sales. management decides on a blended approach and makes changes to balance salary and commissions carefully to achieve optimum sales volume, profitability, and customer satisfaction. over the next two quarters, there is no turnover and morale among the sales team is higher. this change in incentives is an application of:

Answers

In a case whereby a computer hardware company is interested in decreasing its sales force turnover as it seems to be higher than the industry average this change in incentives is an application of reinforcement theory.

What is reinforcement theory?

Reinforcement theory is a psychological theory that explains how people learn and modify their behavior based on the consequences of their actions. It suggests that behavior is shaped by the consequences that follow it, and that people are more likely to repeat behaviors that are reinforced, or rewarded, and less likely to repeat behaviors that are punished.

The theory is based on the idea that behavior is determined by its consequences, and that positive reinforcement (rewarding desired behavior) and negative reinforcement (removing or avoiding a negative consequence) increase the likelihood of a behavior being repeated, while punishment (administering a negative consequence) decreases the likelihood of a behavior being repeated.

Learn more about reinforcement theory at:

https://brainly.com/question/28117659

#SPJ1

what is the best factual book on how the world works, economics of the world , and human behavior analysis

Answers

The best factual book on how the world works, economics, and human behavior analysis is "The Worldly Philosophers" by Robert Heilbroner.

This book provides a comprehensive overview of how economic systems and ideas have developed throughout history.

It delves into how economic systems and philosophies have influenced world history and how various ideologies shape our modern world. It is a great resource for learning about economics, human behavior, and the world.

The Worldly Philosophers provides an in-depth exploration of the development of economic thought throughout history. It focuses on the major economic theories and thinkers, such as Adam Smith and Karl Marx.

It explains how these ideologies have influenced our world today, as well as how different cultures have approached economic systems. It also covers topics like technology, population growth, and global markets. This book provides an easy-to-understand and comprehensive understanding of the world's economy and how it works.

To know more about economic systems click on below link:

https://brainly.com/question/2929332#

#SPJ11

b. find the actual price of the bond assuming that its yield to maturity immediately increases from 6.6% to 7.6% (with maturity still 10 years). assume a par value of 100.

Answers

The actual price of the bond when the yield to maturity immediately increases from 6.6% to 7.6% is $405.96.

The actual price of the bond can be calculated by using the bond price formula. The formula to calculate the bond price is:

P = C / r * [1 - 1 / (1 + r) ^ n] + F / (1 + r) ^ n

Where P = Bond Price, C = Annual Coupon Payment, r = Yield to maturity, n = Number of years to maturity, and F = Face Value (Par Value). The given bond has a maturity of 10 years and pays a 6.6% coupon rate (with coupon payments coming once annually).The face value of the bond is $100 as it is selling at par value.

Calculate the annual coupon payment:

Annual coupon payment = Coupon rate * Face value

Annual coupon payment = 6.6% * $100 = $6.6

Using the formula, calculate the price of the bond when the yield to maturity is 6.6%:

P = $6.6 / 0.066 * [1 - 1 / (1 + 0.066) ^ 10] + $100 / (1 + 0.066) ^ 10P = $66.33 * 6.033 + $39.67P = $400.00

The actual price of the bond when the yield to maturity immediately increases from 6.6% to 7.6% (with maturity still 10 years) can be calculated using the above formula by using 7.6% as the yield to maturity:

P = $6.6 / 0.076 * [1 - 1 / (1 + 0.076) ^ 10] + $100 / (1 + 0.076) ^ 10P = $61.83 * 6.865 + $36.15P = $405.96

Therefore, the actual price of the bond when the yield to maturity immediately increases from 6.6% to 7.6% is $405.96.

Note: The question is incomplete. The complete question probably is: A newly issued bond has a maturity of 10 years and pays a 6.6% coupon rate (with coupon payments coming once annually). The bond sells at par value. Find the actual price of the bond assuming that its yield to maturity immediately increases from 6.6% to 7.6% (with maturity still 10 years). Assume a par value of 100. (Round your answer to 2 decimal places.)

Learn more about Yield to maturity:

https://brainly.com/question/457082

#SPJ11

for a european call option on a currency, the exchange rate is 1.0000, the strike price is 0.9100, the time to maturity is one year, the domestic risk-free rate is 5% per annum, and the foreign risk-free rate is 3% per annum. how low can the option price be without there being an arbitrage opportunity?

Answers

the low option price without an arbitrage opportunity will be $0.1333.

The option price for a European call option on a currency with an exchange rate of 1.0000, a strike price of 0.9100, a time to maturity of one year, a domestic risk-free rate of 5% per annum, and a foreign risk-free rate of 3% per annum cannot be lower than the no-arbitrage price.

This price is calculated by taking the present value of the expected payoff from the option (max[S - K, 0]) and subtracting the cost of purchasing the option, which is equal to the present value of the option premium. The present value of the option premium is equal to PV(Option Premium) = Option Price / (1 + r)^t, where r is the risk-free rate of the foreign currency and t is the time to maturity.

In this case, the no-arbitrage price would be calculated as follows: No-arbitrage Price = PV(Max[S - K, 0]) - PV(Option Price) = 1.0000 - 0.9100 / (1.03)^1 = 0.0835. Therefore, the option price cannot be lower than 0.0835 without creating an arbitrage opportunity.

To find out the arbitrage opportunity in European call option, one should use the concept of put-call parity. The concept of put-call parity states that the premium of a call option and a put option should be equal. Also, a call option premium should be equal to a put option premium with the difference of the present value of the strike price and the present value of the spot price (with domestic interest rate as the base).

According to the question, the given parameters are: S = $1.0000K = $0.9100r (domestic risk-free rate) = 5% p.a. r (foreign risk-free rate) = 3% p.a.  Time to maturity = 1 year The formula for put-call parity can be written as: C + PV(K) = P + S  where, C = Call option price P = Put option price PV (K) = Present value of the strike price Therefore, PV(K) = $0.9100 / 1.05 (as the given risk-free rate is 5% p.a.)= $0.8667

Thus, the equation of put-call parity will be: C + $0.8667 = P + $1.0000The option price should be such that the equation of put-call parity should hold true. Therefore, the value of the call option price should not exceed $0.1333 (i.e. 1.0000 - 0.8667). Hence, the low option price without an arbitrage opportunity will be $0.1333.

To know more about option price refer to:

https://brainly.com/question/30010449

#SPJ11

When the federal government is paid the amount owed for social security tax, an entry is made on the ____________________ side of the Social Security Tax Payable account.

Answers

When the federal government is paid the amount owed for social security tax, an entry is made on the credit side of the Social Security Tax Payable account.

Social Security taxes are a type of payroll tax that is paid by both employers and employees in the United States. Employers are responsible for withholding the employee's portion of Social Security taxes from their paychecks and submitting that amount, along with their own matching contribution, to the federal government.

The Social Security Tax Payable account is a liability account used to track the amount of Social Security taxes owed by an employer to the federal government. When an employer pays the Social Security tax owed, the amount is credited to the account, which reduces the liability. The debit entry is made to the Cash or Bank account as the employer pays the taxes to the federal government

Learn more about Tax, here: brainly.com/question/16423331

#SPJ11

Using the "resource-based view" helps firms ______.

Answers

The resource-based view helps firms achieve competitive advantage.

What is the resource-based view?

The resource-based view (RBV) is an approach to strategic management that focuses on the resources and capabilities of a firm rather than the external environment. It considers the internal resources and capabilities of a firm to be the main drivers of competitive advantage. The RBV suggests that a firm should identify and develop its unique resources and capabilities to achieve and maintain a competitive advantage in the market. These resources and capabilities can include physical assets, financial resources, human capital, intellectual property, and organizational processes.

How does RBV help firms?

Using the RBV helps firms achieve competitive advantage by enabling them to develop a unique set of resources and capabilities that are difficult to imitate or replicate by competitors. This makes it more challenging for other firms to enter the market or compete effectively, leading to sustainable competitive advantage.

RBV helps firms in the following ways:

1. Identifying the firm’s unique resources and capabilities

2. Developing resources and capabilities that are valuable, rare, inimitable, and non-substitutable (VRIN)

3. Creating a competitive advantage that is difficult to imitate or replicate

4. Building a sustained competitive advantage that allows the firm to maintain its position in the market over time.

In conclusion, the resource-based view helps firms achieve competitive advantage by identifying and developing unique resources and capabilities that are difficult to imitate or replicate by competitors.

Learn more about resource-based view here: https://brainly.com/question/30979218

#SPJ11

appealing to consumers' needs, values, and goals will enhance a. wants b. beliefs c. affect d. motivation e. cognitions

Answers

The answer is that appealing to consumers' needs, values, and goals will enhance their motivation.

What is Consumer Motivation?

Consumer motivation refers to the behavior's inner desire that propels him to take a certain action. In the purchase of goods and services, consumer motivation plays an important role. The consumers are motivated to make the purchase of a particular product, brand, or service.There are several factors that motivate consumers to purchase goods and services. Understanding the consumer motivation factors is vital for marketers. A marketer can understand the factors that motivate consumers by conducting research on consumer behavior.Types of Consumer Motivation Factors

1. Biological Motivation: It refers to the physiological requirements of an individual, which includes hunger, thirst, shelter, and sex.

2. Emotional Motivation: It refers to the emotional needs and feelings of an individual.

3. Cognitive Motivation: It refers to the desire to acquire knowledge, skills, and information.

4. Personal Motivation: It refers to the needs and desires of an individual, which include achievement, recognition, and status.

5. Social Motivation: It refers to the needs and desires of an individual to be part of a group, family, or society.

6. Cultural Motivation: It refers to the needs and desires of an individual to belong to a specific culture or tradition.

To know more about motivation click on below link :

https://brainly.com/question/951988#

#SPJ11


Appealing to consumers' needs, values, and goals will enhance motivation.  The correct answer is d. motivation.

Motivation is the inner force that drives a person to take action in order to achieve a goal or complete a task. In order to satisfy one's needs and achieve their goals, one must be inspired, encouraged, and motivated. To put it another way, motivation is the driving force behind any activity that a person undertakes.

By appealing to consumers' needs, values, and goals, a company may increase its market share and profits. The message is delivered through marketing and advertising campaigns that connect with the consumer's basic values, interests, and wants, causing them to be more involved in the product's offering.

Appealing to consumers' needs, values, and goals can enhance motivation by providing a sense of purpose or direction. For example, if a company emphasizes how its product meets consumers' needs and values, customers may be more likely to purchase it due to the product's potential to meet their needs and values.

To know more about motivation , refer here

https://brainly.com/question/30071879#

#SPJ11

hich resource management task determines the type, quantity, receiving location, and users of resources?

Answers

The resource management task that determines the type, quantity, receiving location, and users of resources is called capacity planning.

Capacity planning is an important process for organizations to ensure that their resources are utilized in the most effective and efficient manner.

Capacity planning is the process of determining how many resources are needed and how to best deploy them. This includes assessing the type and quantity of resources required, determining where and how the resources should be received, and deciding who should use the resources.

Capacity planning involves a combination of forecasting, estimating, and scheduling. Forecasting helps determine the future demand for resources, estimating helps determine the number of resources needed to meet the demand, and scheduling ensures that resources are utilized in an orderly manner.

By assessing the demand for resources and the number of resources available, organizations can ensure they are efficiently utilizing their resources to meet their business objectives.

To know more about capacity planning click on below link:

https://brainly.com/question/29802728#

#SPJ11

Final answer:

Resource allocation is the resource management task that determines the type, quantity, receiving location, and users of resources. It is a fundamental strategy in general business and organization operation.

Explanation:

The task that determines the type, quantity, receiving location, and users of resources is resource allocation. This is a fundamental strategy in resource management, an aspect of business and organizational operation. Resource allocation involves identifying the necessary resources, deciding the amounts to distribute, assigning them to specific places, and designating the people who will utilize these resources. For example, a project manager may allocate human resources by determining which employees will work on a project, the location of the project, and the equipment needed.

Learn more about Resource Allocation here:

https://brainly.com/question/31674763

the idea of___is that if different jobs require similar skills, have similar demands, are equally difficult, and so forth, then the pay for the jobs should be the same, regardless of who holds the jobs.

Answers

The idea of pay equity is that if different jobs require similar skills, have similar demands, are equally difficult, and so forth, then the pay for the jobs should be the same, regardless of who holds the jobs.

Pay equity aims to eliminate wage discrimination based on factors such as gender, race, or other personal characteristics. It ensures that employees performing work of equal value receive equal pay. This concept is important for promoting fairness and equal opportunity in the workplace.

To achieve pay equity, employers should regularly analyze their pay structures and make adjustments as needed to ensure that workers with similar skills, demands, and job difficulty are paid the same. This can involve comparing jobs, assessing the value of each role, and adjusting wages accordingly.

By implementing pay equity, employers not only promote fairness but also contribute to a more inclusive and diverse work environment.

To know more about pay equity click on below link:

https://brainly.com/question/15208523#

#SPJ11

what are dynamic, nonroutine, long-term business processes such as financial planning, expansion strategies, and stakeholder interactions?

Answers

Dynamic, nonroutine, long-term business processes are those that require regular updates or adjustments to stay current and effective. These processes include financial planning, expansion strategies, and stakeholder interactions.

What are dynamic, nonroutine, long-term business processes?

Dynamic, nonroutine, long-term business processes refer to processes that cannot be fully automated and require human intervention. They are processes that are not static and require regular updates or adjustments to stay current and effective. These processes involve a high degree of uncertainty, risk, and complexity.

These processes can be categorized as follows:

Dynamic processes are those that change over time or require frequent updates.

Nonroutine processes are those that are not easily automated or cannot be entirely automated.

Long-term processes refer to those that take a considerable amount of time to complete.

Some examples of dynamic, nonroutine, long-term business processes include:

Financial planning

Expansion strategies

Stakeholder interactions

Organizational culture development

Product development and innovation

Marketing and branding strategies

Employee development and training

Quality management and assurance initiatives

Risk management

Corporate social responsibility programs

Strategic planning and execution

The primary characteristic of dynamic, nonroutine, long-term business processes is that they require a significant amount of human judgment, decision-making, and intervention. They cannot be fully automated, and they require regular updates or adjustments to stay current and effective.

To learn more about financial planning, refer below:

https://brainly.com/question/21780268

#SPJ11

when too much or too little output gets produced there is: no profit. a very high price. forgone production. deadweight loss.

Answers

Deadweight loss is an economic concept that occurs when an economy produces either too much or too little of a product or service. In this case, when too much or too little output is produced, deadweight loss occurs.

Deadweight loss is the result of an inefficient market, when production does not equal demand. In a perfectly efficient market, the quantity supplied would equal the quantity demanded. If the quantity supplied is higher than the quantity demanded, the price of the good will decrease, and vice versa.

Deadweight loss is measured by the triangle formed between the price, quantity supplied, and quantity demanded. The base of the triangle is the difference between the quantity supplied and quantity demanded, and the height of the triangle is the difference between the price that buyers are willing to pay and the price producers are willing to accept.

Deadweight loss affects everyone in the market, as the inefficient market results in a net loss of welfare for both buyers and sellers. For buyers, they are unable to purchase the quantity they wish to purchase, so their welfare decreases. For sellers, the decrease in price means that they receive a lower profit, leading to lower welfare for them as well.

Overall, deadweight loss is an economic concept that occurs when an economy produces either too much or too little of a product or service. It is measured by the triangle formed between the price, quantity supplied, and quantity demanded, and affects both buyers and sellers by decreasing their welfare.

To learn more about Deadweight loss here:

https://brainly.com/question/26362939#

#SPJ11

which of the followig people would prioritizing returns over liquidity be the most productive choice

Answers

Prioritizing returns over liquidity would be the most productive choice for a long-term investor.

When one prioritizes returns over liquidity, they invest in a longer-term asset that provides a higher rate of return, rather than one that is more liquid, meaning that it is more easily converted into cash. The following people would benefit the most from prioritizing returns over liquidity: Long-term investors are individuals who prioritize long-term gains over short-term gains.

Prioritizing returns over liquidity would benefit them because they are in it for the long haul and want to earn a high return on their investment over time. They are not seeking for instant returns or quick liquidity, but rather to grow their assets over time. Portfolio managers, hedge funds, and mutual funds, for example, are organizations that manage money for their clients. By prioritizing returns over liquidity, they can provide their customers with a higher rate of return on their investments over time, resulting in satisfied clients and, as a result, more business.

To learn more about liquidity: https://brainly.com/question/25894261

#SPJ11

adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to swift corporation for 90% of the stock. the property is subject to a liability of $60,000, which swift assumes.

Answers

"Adam recognizes a gain of $10,000 and the basis of the Swift stock to Adam is $0."

Adam transferred property with an adjusted basis of $50,000 and a fair market value of $400,000 to Swift Corporation for 90% of the stock; the basis of the Swift stock to Adam is $0, and Adam recognizes a gain of $10,000 on the transaction under § 357(c) due to the assumption of the liability exceeding the adjusted basis of the property transferred.

In a § 351 transaction, the stock received by the taxpayer has a substituted basis, which is the same as the basis the taxpayer had in the property transferred, increased by any recognized gain and decreased by any boot received.

In this case, Swift Corporation assumed a liability of $60,000, which exceeded the adjusted basis of the property transferred by $10,000, resulting in a recognized gain for Adam but a zero basis in the Swift stock received.

The calculation is as follows:

Recognized gain = Liability assumed - Adjusted basis of the property transferred. Thus:

Recognized gain = $60,000 - $50,000Recognized gain = $10,000

Basis of Swift stock to Adam = Basis in the property transferred + Gain recognized - Boot received. Thus:

Basis of Swift stock to Adam = $50,000 + $10,000 - $60,000Basis of Swift stock to Adam = $0

Therefore, the basis of the Swift stock to Adam is $0, and Adam recognizes a gain of $10,000 on the transaction under § 357(c) due to the assumption of the liability exceeding the adjusted basis of the property transferred.

The complete question:

Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation for 90% of the stock. The property is subject to a liability of $60,000, which Swift assumes. What is the basis of the Swift stock to Adam?
Adam recognizes a gain of _____________ and the basis of the Swift stock to Adam is $___________.

Learn more about Recognized gain https://brainly.com/question/29583931

#SPJ11

a check endorsement that transfers ownership to anyone that has possession of the check is called a:

Answers

A check endorsement that transfers ownership to anyone that has possession of the check is called a blank endorsement.

What is a blank endorsement?

A blank endorsement is when the name of the recipient, or payee, of a payment is not mentioned or simply signed by the issuer. A blank endorsement is just the payee's signature on the reverse side of the check. The signature on a check's back is the only requirement for a blank endorsement, with no other words or information included.

A check that has been endorsed in blank by the payee can be cashed or deposited by any individual or organization in possession of the check. A blank endorsement is not a secure method of payment transfer, as it means that anyone in possession of the check can cash or deposit it.

A blank endorsement, on the other hand, is frequently employed by businesses or government agencies to speed up payment processing times.

To know more about check endorsement, click on the link below:

https://brainly.com/question/13582639#

#SPJ11

apple has just paid a quarterly dividend of $3.02. dividends are expected to grow by 10% for the next 4 quarters, and then grow by 1.2% thereafter. apple has a required quarterly return of 5%.what is the terminal value in the fourth quarter (

Answers

The terminal value in the fourth quarter is $101.58 if Apple has a required quarterly return of 5% in the last quarter.

Quarterly dividend  = $3.02

Growth rate = 10% in the next 4 quarters

After 4 quarters, growth rate = 1.2%

Quarterly return of required =  5%.

To calculate the terminal value in the fourth quarter, we need to calculate the present value for future dividends. The formula for the present value is:

PV = D / (r - g)

PV1 = D1 / (r - g)

PV1 = $3.02 / (0.05 - 0.1)

PV1 = -$60.40

PV2 = D2 / (r - g)

PV2 = ($3.02 * 1.1) / (0.05 - 0.1)

PV2 = $34.13

PV3 = D3 / (r - g)

PV3 = ($3.02 * 1.1^2) / (0.05 - 0.1)

PV3 = $49.33

PV4 = D4 / (r - g)

PV4 = ($3.02 * 1.1^3) / (0.05 - 0.1)

PV4 = $71.46

We need to calculate the terminal value. The formula is:

PV(Terminal Value) = D5 / (r - g)

PV(Terminal Value) = ($3.02 * 1.1^4) / (0.05 - 0.012)

PV(Terminal Value) = $101.58

Now by adding all the present values, we get the terminal value:

Total PV = PV1 + PV2 + PV3 + PV4 + PV(TV)

Total PV = -$60.40 + $34.13 + $49.33 + $71.46 + $101.58

Total PV = $196.10

Therefore, we can conclude that the terminal value in the fourth quarter is $101.58.

To learn more about dividends

https://brainly.com/question/2960815

#SPJ4

Your available credit is $1,000, but you keep your debt to $200.00. How does this help you build a positive credit history?

Answers

Keeping a low debt-to-credit ratio can demonstrate responsible credit usage, which is a key factor in building a positive credit history.  

Building a good credit history requires maintaining a low debt-to-credit ratio.Your debt-to-credit ratio measures how much of your available credit you are currently using.A lower debt-to-credit ratio implies prudent credit use because you aren't using credit excessively and can properly manage credit.Keep this percentage as low as you can because creditors and lenders use it to assess your credit worthiness. Maintaining a low debt to credit ratio may make you appear less dangerous to lenders and increase your chances of getting future loan applications accepted.Another important element in establishing a solid credit history is having a low debt-to-credit ratio, which can enhance your credit score.

learn more about  credit here:

https://brainly.com/question/30791179

#SPJ1

if a handbag manufacturer offers three different purses (a budget-conscious version, a slightly higher-end version, and a luxury version) to three different target markets, which targeting strategy is it using?

Answers

If a handbag manufacturer offers three different purses (a budget-conscious version, a slightly higher-end version, and a luxury version) to three different target markets, the targeting strategy that it is using is a differentiated targeting strategy.

Differentiated targeting strategy is the approach of creating two or more distinct product lines, which each aim to target a specific customer base, with specialized messaging and unique pricing. The firm aims to differentiate its product offerings and promote them to a particular target audience with distinct marketing strategies to meet their needs.

A manufacturer can employ the differentiated targeting strategy to market their product to specific consumer segments who are willing to pay different prices for it. It is aimed at customer groups who are prepared to pay a premium price for a luxury handbag and those who are looking for budget-conscious items. This strategy aims to satisfy the demands of consumers with different preferences and budgets by producing different goods for each group.

The objective is to optimize sales and revenue while minimizing the amount of overlap between customer groups. This method has been shown to be successful in markets where consumers have unique needs and are willing to pay a premium price for a high-quality product.

For more about budget-conscious :

https://brainly.com/question/30465616

#SPJ11

which discipline has provided organizational behavior with much of its theoretical foundation for team dynamics, organizational power, and organizational socialization?

Answers

Sociology is the discipline that has provided organizational behavior with much of its theoretical foundation for team dynamics, organizational power, and organizational socialization. Organizational behavior is a discipline that studies the behavior of people in organizations.

It combines the fields of sociology, psychology, anthropology, and communication to examine how people interact in groups and how organizations operate. The discipline of sociology has been instrumental in establishing the theoretical foundations for team dynamics, organizational power, and organizational socialization in organizational behavior. Sociology is a social science that studies human social structures, interactions, and social behavior, and it provides a theoretical perspective for understanding the relationships between people in groups and organizations. Different theoretical perspectives in sociology, including conflict theory, symbolic interactionism, and functionalism, have contributed to the development of organizational behavior as a discipline.

The discipline that has provided organizational behavior with much of its theoretical foundation for team dynamics, organizational power, and organizational socialization is sociology. It is one of the social sciences that studies human social structures, interactions, and social behavior, and it provides a theoretical perspective for understanding the relationships between people in groups and organizations.

Learn more about organizational discipline https://brainly.com/question/29313650

#SPJ11

if the consumer price index is 75, then prices have group of answer choices risen 75 percent in the last year. risen 75 percent since the base year. declined 25 percent since the base year. declined 75 percent since the last year.

Answers

The Consumer Price Index (CPI) is a measure of the average change in prices of goods and services consumed by households over time. It is a widely used economic indicator .

that aids in determining whether an economy is experiencing inflation or deflation. A CPI of 75 shows that prices have grown by 75% from the base year, which is the year against which the current year's prices are compared. It does not imply that the increase in prices over the past year has been 75%. Instead, it signifies that the current year's prices are 75% greater than those of the base year. A CPI of 75 also signifies a 25% decrease in the value of money since the base year.  It is a widely used economic indicator . It would thus require 25%.

learn more about CPI  here:

https://brainly.com/question/26682248

#SPJ4

Risen 75 percent since the base year.

Declined 25 percent since the base year.

If the consumer price index is 75, prices have not risen or declined by a percentage amount in the last year.

Risen 75 percent in the last year.

the time required to pass legislation necessary to stabilize the economy can lead to a(n) lag.

Answers

The time required to pass the legislation necessary to stabilize the economy can lead to a policy lag.

The time required to implement a new policy to achieve a specific objective is known as a policy lag.

This is the period of time between the initial proposal of a policy change and its actual implementation.

Policy lags can occur for a variety of reasons, including the fact that the legislative process takes time to pass new laws or that bureaucratic procedures must be followed before new policies can be put into action.

Assume that the Federal Reserve Bank of the United States determines that the economy requires a monetary stimulus to boost economic growth. It has been determined that the best way to achieve this objective is to lower the interest rate.

The Federal Reserve Bank of the United States will need to wait until the next FOMC meeting to lower the interest rate if it determines that this is the best course of action.

The policy lag would be the time between the Federal Reserve Bank of the United States' decision to lower the interest rate and its actual implementation.

Learn more about policy lag here:

https://brainly.com/question/27326508

#SPJ11

true or false: the increased focus on business ethics that followed the business scandals of the early 2000s, including the enron collapse and civilian contractor abuses in iraq, also lead to the growing use of ethics officers.

Answers

The statement that 'the increased focus on business ethics that followed the business scandals of the early 2000s, including the Enron collapse and civilian contractor abuses in Iraq, also led to the growing use of ethics officers' is true as due to these scandals, there was a growing concern about ethical practices in business.

The increased focus on business ethics that followed the business scandals of the early 2000s, including the Enron collapse and civilian contractor abuses in Iraq, also led to the growing use of ethics officers. The rise in the number of ethics officers was a response to the heightened concern about business ethics.

In the aftermath of the Enron scandal, the importance of ethical conduct in the workplace was highlighted. The role of the ethics officer became more significant, as companies required individuals who could evaluate and regulate ethical standards. In addition, the ethics officer was responsible for developing policies that promoted ethical behaviour among the employees.

This gave the employees a clearer understanding of the standards and behaviours required of them. The growing use of ethics officers can also be attributed to the increased scrutiny of companies. Corporate responsibility and accountability became an important aspect of business operations.

Companies, therefore, required the services of ethics officers to ensure that they met the required ethical standards. The role of the ethics officer has become more significant in recent years. The current business environment is highly competitive, and companies must maintain ethical practices to remain competitive. Ethics officers play a critical role in ensuring that companies meet these ethical standards.

Hence, the statement is true.

Learn more about Business ethics:

https://brainly.com/question/26461133

#SPJ11

how does dividends, growth of the dividends and earnings, and required return on the stock affect airlines overall valuation

Answers

There are several factors that can affect the overall valuation of airlines. These include dividends, growth of dividends and earnings, and required return on the stock. Let us see how each of these factors can affect the valuation of airlines

Dividends Dividends are the distribution of a company's earnings to its shareholders. When a company pays dividends, it signals to investors that it is financially stable and profitable. This can lead to increased demand for the company's stock, which can drive up the stock price. In the case of airlines, the payment of dividends can help increase the overall valuation of the airline.Growth of dividends and earningsThe growth of dividends and earnings is another factor that can affect the overall valuation of airlines. If a company is able to grow its earnings and dividends over time, it can attract more investors, which can increase the demand for its stock. This can lead to an increase in the stock price, which can increase the overall valuation of the airline.

Required return on the stock- The required return on the stock is the rate of return that investors demand in order to invest in a particular stock. This rate of return is determined by the riskiness of the stock and the overall market conditions. If investors require a higher rate of return on the stock, it can lead to a decrease in the stock price, which can decrease the overall valuation of the airline.On the other hand, if investors are willing to accept a lower rate of return on the stock, it can lead to an increase in the stock price, which can increase the overall valuation of the airline. Therefore, the required return on the stock is an important factor that can affect the overall valuation of airlines.

To know more about airlines valuation click on below link :

https://brainly.com/question/31062315

#SPJ11

: firms achieve and sustain differentiation advantages and attain above-average performance when their price premiums do not exceed the extra costs incurred in being unique. group of answer choices true false

Answers

The correct option is true, Firms achieve and sustain differentiation advantages and attain above-average performance when their price premiums do not exceed the extra costs incurred in being unique.

Firms achieve and sustain differentiation advantages and attain above-average performance when their price premiums do not exceed the extra costs incurred in being unique. A differentiated product is a product that is unique from other products in the market in some manner.

Firms that produces differentiated products  charge a higher price as compared to their competitors. They earn a price premium for the unique features that they provide.

However, if the extra costs incurred in being unique are higher than the price premium charged, then it is difficult for the firms to sustain their differentiation advantages and attain above-average performance. Thus, the given statement is true.

For more such questions on Firms

https://brainly.com/question/24553900

#SPJ11

what is today's sport marketer able to do that was impossible 20 to 30 years ago, due to the ubiquitous nature of electronic media, the widespread use of social media, and the proliferation of purchases online?

Answers

The use of social media, electronic media, and online shopping has made it possible for today's sport marketer to reach a wider audience, engage with consumers in real-time, and tailor their marketing strategies to meet the needs of their target audience.

Due to the widespread use of social media, the ubiquitous nature of electronic media, and the proliferation of purchases online, today's sport marketer can do the following:

Use social media: Today's sport marketer has access to social media, which enables them to engage with consumers in real-time. Social media provides a platform for businesses to advertise their goods or services, monitor customer feedback, and offer exclusive deals and promotions.

Utilize electronic media: Today's sport marketer has access to a variety of electronic media platforms. They can create advertisements, videos, and other content for broadcast on television, radio, and the internet. This enables them to reach a wide audience with their message.

Use online shopping: Online shopping has become increasingly popular in recent years. Today's sport marketer can leverage online shopping to offer exclusive deals and promotions. They can also use data analysis to track customer preferences and tailor their marketing strategies to meet the needs of their target audience.

For more about electronic media:

https://brainly.com/question/23976774

#SPJ11

to save money, taylor decided not to go to a concert where her favorite musician was performing. what was the opportunity cost of that decision?

Answers

Option d. having fun at the concert.  Having fun at the concert was the opportunity cost of that decision took by Taylor.

Opportunity cost is generally defined as the next best option. Also called replacement cost, it is the loss of profit that could have been incurred if another option had been chosen. This can also be explained as a loss of utility due to change of choice.

Opportunity cost is an economic concept that arises from realistic assumptions of resource scarcity. Due to the limited amount of resources, the number of production options is also limited. The production capacity is limited, so in order to produce a certain combination of goods, you must forget to produce another combination of goods. This can be called an opportunity cost.

Opportunity cost is a concept commonly used by project promoters and economic analysts to conduct feasibility studies and make policy decisions.

To learn more about opportunity cost, here:

https://brainly.com/question/13036997

#SPJ4

Complete question:

To save money, Taylor decided not to go to a concert where her favorite musician was performing. what was the opportunity cost of that decision?

a. having time to study

b. spending time at home

c. having extra money

d. having fun at the concert

Other Questions
For 5 days mr fransico had a total 10. 5 hours of overtime in the office what was his average daily overtime? when providing cpr to a child or infant with an advanced airway in place, one provider should deliver 1 ventilation every 2 to 3 seconds, while the other provider delivers continuous chest compressions without pausing for ventilations. true or false? which application can be used to perform a vulnerability assessment scan in the reconnaissance phase of the ethical hacking process? I need help on this asap! What type of radiation would have a wavelength of 10 -2 m? Which of the following best describes the relationship between worldview, culture, and intercultural communication?Culture influences worldviewb.Worldview influences culturec.Intercultural communication is impacted by culture and worldviewd.Worldview influences culture and intercultural communication is impacted by culture and worldview an imaging technique in which a computer monitors the degree of absorption of x-ray beams is known as . which phase of the business cycle is characterized by increasing levels of unemployment? answer unselected peaks unselected growth unselected recessions benefits/advantages of friedel crafts acylation reactions as compared to friedel crafts alkylation reactions? the organ dysfunction that has increased pressure in the abdominal cavity due to ischemia of abdominal tissues is called: make r subject of R=r-1/r+1 if the total amount of flour in a recipe is 44 ounces and the weight of water is 1 pound 8 ounces, what baker's percentage best represents the water. what are three characteristics that affect decision making by a group? (choose every correct answer.) if iq scores are normally distributed with a mean of 100 and a standard deviation of 15, what proportion of people have iq scores between 80 and 125? having an established risk management program means that an organization's assets are completely protected. question 4 options: true false The types of schools that have accredited funeral service programs: - schools with regional accreditation in addition to accreditation by the american board of funeral service education - single philosophy schools which teach only funeral service and are not colleges with other programs - schools with international accreditation in addition to accreditation by the international board of funeral service education 9x-7=-7 please answer quick suppose that the risk-free rate is 3% and that the market risk premium is 4%. round your answers to one decimal place. the most commonly installed type of fire sprinkler systems are? pre-action systems dry-pipe systems wet-pipe systems deluge systems 1.reason that businesspeople use their resources efficiently in production consumers 2.individuals, businesses, and different regions produce certain products profit 3.people whose wants are being satisfied demand 4.another name for a businessperson entrepreneur 5.what determines how much is produced specialization