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- Companies A and B differ only in their capital structure. A is financed 30% debt and 70% equity: B is financed 10% debt and 90% equity. The debt of both companies is risk-free. a. Rosencrantz owns 1% of the common stock of A. What other investment package would produce identical cash flow for Rosencrantz? b. Guildenstern owns 2% of common stock of B. What other investment package would produce identical cash flows for Guildenstern?AlpeshHOLDE O R, a self-employed stockbroker, becomes totally disabled on January 1 and receives $1,500 a month for the next twelve months from her owns trevased De which she had paid the premium. How much of this income is subject to federal income tox? OA $18,000 $12,800 $9,000 $0 B. O C. O D.
- 4. Explain how the existence of a lender of last resort might prevent bank runs.pls help ASAPScenario B (Australian Taxation Law): – Taxpayers at retirement age Inder Muller, aged 58, recently retired from his employment as chief accountant of Moon Light Pty Ltd, after 17 years and 4 months of service. Inder’s wife Belinda, aged 59, is currently running a small newsagency. Inder and Belinda visited you to seek advice on various retirement planning options specified below. Inder and Belinda both are covered by private health insurance. 2) Regarding Inder’s Termination payment & Superannuation Inder currently has superannuation valued at $582,000 with the Suncorp (complying Super fund). The total amount includes the following elements; > Tax free component $25,000 > Element untaxed in the fund $207,000 > Element taxed in the fund $350,000LAW6001 Required Advise Inder what would be the tax consequences of withdrawing his super prior to his retirement age, including all options available to him.
- Short answer is absolutely fine: Does an ancient redwood forest have value other than its economic one as potential lumber? If so, what is this value, and how is it to be weighed against the interests of a company like Maxxam? Are redwoods more important than jobs? Is it morally permissible for private owners to do as they wish with the timberland they own? Explain why or why not. What’s your assessment of Hurwitz? Is he a robber baron, a socially responsible businessperson, or something in between?helpAn apartment building in Ithaca, New York with 72 units was financed with a $7.2 million non-recourse first mortgage loan at a 3.6% annual interest rate and an additional $3.6 million fully recourse second mortgage loan at a 7.2% annual interest rate. The owner later borrowed another $720,000 with a fully recourse third mortgage loan at a 10.8% annual interest rate. The borrower ultimately found itself in financial distress and unable to make the monthly mortgage payments on the three outstanding mortgage loans and the property went into foreclosure. What happens to the claims of the second and third mortgage lenders if the foreclosure lawsuit by the first mortgage lender includes all junior mortgage lenders and the property is sold to an unrelated third party for a net price of $6.6 million at the foreclosure sale? a. The mortgage liens of the junior claimants and the loan amounts owed to them are unaffected by the foreclosure sale b. The mortgage liens of the junior claimants are…
- A rented a car owned by B for 50$ going to Seoul. Under the condition the A will cover the expenses for gasoline and will return the car after 18 hours. When A was already in Seoul, A parked the car in the park. The car was lost. The car is 700$ worth. What are A's obligations now under the concept of simple loan or mutuum? Will A just pay 50$ or 700$ to B?Explain. What should be the responsibility of A in relation to the lost rented-vehicle?Mr. Mermiad gets paid on commission. He sold a car for $56,000 and gets 8% commission. How much did Mr Mermaid make on this sale?Read and analyze the following situation.Bernard J. Ebbers, chief executive officer and founder of the telecommunications giant, WorldCom, owed the corporation $375 million for a loan secured by shares he owned in the company. The value of the company's stock was declining, to the point that the value of its shares was less than the amount of the loan. On February 2, 2002, Mr. Ebbers engaged in a series of communications with leading Wall Street stock analysts, whose opinions helped drive up the stock price, to refute negative news about the company's financial condition. , which was frightening investors. That day, the company's shares increased by 12% in value. Four months later, the company filed for bankruptcy protection due to its precarious economic condition. Answer the following questions:Are the actions mentioned above illegal? Are they unethical? Support and explain your answer. What is the difference between an illegal action and an unethical one? Support and explain your…