Answer:
Equity financing
Explanation:
Equity financing is the kind of financing, which involves or comprise of a procedure for raising the capital or funds by the sale of the shares. The companies raise the money because they have a short term need in order to pay the bills or might have a objective and needs the funds or money to invest for the purpose of growth.
So, in short, it is a form or kind of financing which comprise of raising the funds or money by selling the shares or stock in a business.
Under this case, the Navim used the equity financing as he sold the stock of the company to investors in order to finance.
Answer:
The correct answer is option C.
Explanation:
Giving the following information:
The initial investment of $350,000. The investment would generate annual cash inflows of $133,000 for the life of the project, which is 4 years. At the end of the project, equipment that had been used in the project could be sold for $32,000. The company’s discount rate is 14%.
We need to use the following formula:
NPV= -Io + [Cf/(1+i)^n]
Io= 350,000
1= 133,000/1.14
2= 133,000/1.14^2
3= 133,000/1.14^3
4= 165,000/1.14^4
NPV= $56,470.31
Answer:
Elliot's qualified business income deduction is $28,000.
Explanation:
total income
= share in specified service business income + wages of wife
= 280000*50% + $90000
= $230,000
taxable income before QBI = total income - standard deduction
= $230,000 - $24,000
= $206,000
QBI deduction is lesser of:
- 20% of qualified business income
= $140,000*20%
= $28,000
Therefore, Elliot's qualified business income deduction is $28,000.
Answer:
Richard is trying to understand if his product or service is substitutable.
Explanation:
According to the resource based theory, businesses gain competitive advantages over other businesses in the industry based on the strength of their resources.
For competitive advantage to be sustainable however, such resources must be rare, and not easily imitated or substituted.
Richard is carrying out research on his competitors to find out what they have to offer, to know if his product can be easily substituted or replaced.
Answer:
correct option is c. 43.75
Explanation:
given data
share own = 700
stock outstanding = 320000
market price = $25
interest and taxes = $160,000
debt = $500,000
interest = 7%
loan = 7.5 percent interest
to find out
How many shares of JKL stock must Theo sell to unlever
solution
first we get here no of share that repurchased is express as
no of share = 
..............1
no of share = 
no of share = 20,000 shares
sell = share own × ( no of share ÷ stock outstanding ) .................2
sell = 700 × 
sell = 43.75 shares
so correct option is c. 43.75
