BUS 225 DAYONE LL
17th Edition
ISBN: 9781264116430
Author: BLOCK
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 1, Problem 3DQ
Summary Introduction
To Explain: The major advantages and drawbacks of a sole proprietorship.
Introduction:
Sole proprietorship:
A business entity owned and operated by one person is a sole proprietorship entity. It is not a separate legal entity and is neither required to be registered nor incorporated. The type of business opted by a sole trader is usually a small or medium one.
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Make a report on Human Resource Development Practices in Nepalese Private Sector Business Industries.
Eccles Inc., a zero-growth firm, has an expected EBIT of $100.000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%.
If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)?
a. $475,875
b. $536,921
c. $587,750
d. $623,050
e. $564,167
Refer to the data for Eccles Inc. earlier. If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)?
a. $475,875
b. $536,921
c. $587,750
d. $623,050
O $564,167
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