Sarah and Wei have an opportunity to buy a large parcel of land on the Willamette River, just two miles south of Salem. They want to build an amusement park on the land. Sarah approaches you and says, "Hey, I know you took that BA 333 class, so maybe you can help me figure out what to do. Wei and I need a lot of money to start up our amusement park and buy the land we want, and we're a little nervous about getting sued if someone gets thrown out of our roller coaster. What kind of business do you think we should we set up? We were thinking maybe we could just be partners. We'd prefer not to have anything formal written down--we think that might be bad for our friendship. What's your advice?"Draft an answer to Sarah and Wei and include it in your document. Your answer should include: 1) your recommendation for the best entity choice; 2) a complete explanation of why this is the best option; 3) a secondary recommendation, in case Sarah and Wei don't like your first option; 4) an explanation as to why this is your second choice (i.e., compare to your first choice and explain why this is not as good, but still an acceptable option).

Answers

Answer 1
Answer:

Answer:

Explanation below.

Explanation:

The recommendation that I will give or propose is that the agreement must have a legal backing.

This is the best recommendation that a wise person can proposes. It is a show of height of stupidity when an individual go into conjunction with another person without any written agreement that is backed legally. This because, when there is a problem in the future, the documents will be a way to solve it.

The other secondary option is written and signed agreement with video recording. This is not as good as the one mentioned above, but can still be considered as an alternative.


Related Questions

At December 31, 2018, Novak Corp. Company had a credit balance of $ 18,000 in Allowance for Doubtful Accounts. During 2019, Novak Corp. wrote off accounts totaling $ 13,300. One of those accounts ($ 3,200) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $ 27,200. Prepare journal entries to record the 2019 transactions of Novak Corp. Company
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economyâs multiplier is 3.If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level?
By the late 1800s, soft coal miners earned a higher hourly wage than other industrial workers of similar skill levels. The mining wage is an example of a. wage discrimination. b. a monopsony market. c. a compensating wage differential. d. an efficiency wage.
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year?
A stainless steel knife set is one item it stocks. Demand (2,400 sets per year) is relatively stable over the entire year. Whenever new stock is ordered, a buyer must ensure that numbers are correct for stock on-hand and then phone in a new order. The total cost involved to place an order is about $5. RW figures that holding inventory in stock and paying for interest on borrowed capital, insurance, and so on, add up to about $4 holding cost per unit per year.Analysis of the past data shows that the standard deviation of demand from retailers is about four units per day for a 365-day year. Lead time to get the order is seven days.What is the economic order quantity?

People want information communicated quickly and clearly. To make your writing more concise and understandable, avoid flabby expressions, long lead-ins, and unnecessary fillers.a. For the following sentence, choose the best revision.
1. I am sending you this letter to inform you that we have experienced an unexpected surprise within our expense sheet, but we are positively certain we will solve it.
A) We need to inform you that we have experienced an unexpected surprise with our expense sheet, but we are midway to an end result.
B) We have identified a problem with our expense sheet, but we will solve it.
C) I am sending you this letter to inform you that we have a problem with our expense sheet, but we are positively certain we have a solution.

Answers

Answer:

The best revision for the following sentence is:

B) We have identified a problem with our expense sheet, but we will solve it.

Explanation:

In e-mail, letters, messages, memos, and other business documents intended for a busy audience who appreciates getting the information they need quickly and easily, replacing a phrases with a word  in a formal tone, detracting from adding meaning: "we have identified" instead of: "I am sending" or "we need to inform you", keeping the sentence just as it is with certain rhythm and concise.

Otherwise in option 1. I am sending you this letter to inform you that we have experienced an unexpected surprise within our expense sheet, but we are positively certain we will solve it.

The sentence has a redundant pair:  "send" and "inform", it is “wordy,” and includes irrelevant “fillers” as "unexpected" that makes it lack of conciseness in the substantive information, not getting to the point promptly. I also includes passive voice which is not a grammatical error, but it often leads to using more words than necessary frustrating or confusing the audience; and it has prepositional phrases overuse: "that", within", "but" making this sentence clunky and unclear.

In option A) We need to inform you that we have experienced an unexpected surprise with our expense sheet, but we are midway to an end result.

The sentence has unnecessary modifiers: "unexpected" and "end", and passive voice again.

In option C) I am sending you this letter to inform you that we have a problem with our expense sheet, but we are positively certain we have a solution.

The sentence has unnecessary modifier: "positively".

Rachel's Designs has 1,700 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $14,000 in 2021. How much of the $14,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders

Answers

Answer:

$12,750 and $1,250

Explanation:

The computation of the dividend paid is shown below:

For 2021, the preference dividend is

= 1700 shares × $50 × 5%

= $4,250

Since in 2019 and 2020 the dividend is not paid

So, For 2019 and for 2020, the preference dividend is

= $4,250 × 2 years

= $8,500

So total preference dividend is

= $4,250 + $8,500

= $12,750

And, the total dividend paid is $14,000

So, for the common stockholder, it is

= $14,000 - $12,750

= $1,250

Suppose demand for a product is highly elastic. What will likely happen to a company's total revenue if it raises the price of that product?a. total revenue will riseb. total revenue will fallc. total revenue will remain the samed. total revenue will fluctuate

Answers

Answer:

The correct answer is b. Total revenue will fall.

Explanation:

The equation for the price elasticity of demand (PED) is ε = (dQ/Q)/(dP/P)

where Q represents the quantity, P represents the price and d represents variation.

If the demand for a product is highly elastic, mathematically it means that the PED in absolute value is greater than 1.

|ε| > (dQ/Q)/(dP/P) ⇒ |ε| > 1

Economically that means that the quantity demanded of that product will decrease more than proportionally to the increase in price of that same product. In other words, the company will experience that a increase in price of its product raises the revenue for each unit sold, but given that the PED is highly elastice an increase in price reduces the number of units actually sold to the extent the company's total revenue actually falls.

Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the major issues. What are some of the fiscal solutions that he mentions tweaking?

Answers

Answer:

Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways are as follows: 1. Raise social security retirement age

2. Reduce medicare for wealthy seniors

3. Raise medical healthcare contributions question

According to davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the united states. in his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the democrats aim at making sure that everyone lives in an “equitable, fair society”. i think i would agree more with the democrat philosophy because equity and fairness to everyone is a key public value outcome in every society.question

The two fiscal issues that are hyper-partisan are as follows: i. military defense spending. ii. issues of taxes - the parties are so divided chiefly because they have extreme opposites points of view on several issues.- on the issues, i lean towards the democrat view. question

Towards the end of his talk, davidson says he fears that the longer we delay any solution, the more the world will look to the u.s. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. he explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.

Answer:

The fiscal solutions that Davidson offer are raising the social security retirement age, reducing Medicare for wealthy seniors, and raising medical healthcare contributions question.

Explanation:

Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 12.9 % per year thereafter until the 6th year.​ Thereafter, growth will level off at 1.7 % per year. According to the​ dividend-discount model, what is the value of a share of Gillette stock if the​ firm's equity cost of capital is 8.8 %​?

Answers

Answer:

what is the value of a share of Gillette stock if the​ firm's equity cost of capital is 8.8 %​?

$ 13,36  

Explanation:

First it's necessary to find the present value of the annual dividend paid during the next 6 years, which is calculate by the formula of the Present Value.

PV = Dt / (1+r)^t , it means that each Dividend at the year "t" will be value with the rate r calculated a this same moment "t".

  • Will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 12.9 % per year thereafter until the 6th year.​

Year 1

0,61 = Div

1,09  = (1+0,88)^1

0,56  = Div/1,09

Year 2

0,69 = Div Year 1(0,61) * 1,129, because increase at 12,9%  by year

1,18  =  (1+0,88)^2

0,58  = Div/1,18

Year 3

0,78 = Div Year 2(0,69) * 1,129, because increase at 12,9%  by year

1,29  =  (1+0,88)^3

0,60  = Div/1,18

Year 4

0,88 = Div Year 3(0,78) * 1,129, because increase at 12,9%  by year

1,24 =  (1+0,88)^4

0,63  = Div/1,24

Year 5

0,99 = Div Year 4(0,88) * 1,129, because increase at 12,9%  by year

1,52 =  (1+0,88)^5

0,65  = Div/1,52

Year 6

1,12 = Div Year 5(0,99) * 1,129, because increase at 12,9%  by year

1,66 =  (1+0,88)^6

0,67  = Div/1,66

PV of 6 Years= 0,56 + 0,58 + 0,60 + 0,63 + 0,65 + 0,67 = $3,70  

  • Thereafter, growth will level off at 1.7 % per year.

To this second part the model indicates that de dividend is calculated by = Dividend /(Rate-Growth) , which means that if a dividend grows forever, we applied the perpetuity formula where dividend growth it's applied as negative to the discount rate.

Year 6

1,14 = Div Year 6(1,12) * 1,017, thereafter will growth at 1,7%  by year.

7,1% =  (8,8%-1-7%) Discount rate less growth of dividend.

16,03  = Div/0,071 = In this case we use the rate not the 1+rate.

This value it's calculated at the moment of Year 7, we need to apply the Present Value to calculate the actual value, which is:

16,03 = Perpetuity calculated before until year 6.  

1,66  = Discount Rate applied this year.

9,66   = Present Value of the Dividen which grows forever at 1,7%

TOTAL Value of Share = PV of 6 Years + PV Perpetuity =

                                          $3,70 + $9,66=$13,36

If you buy 100 shares of IBM for $120/share, and the margin on your account is 50%, the broker will float you an interest-free loan of $6,000, until the price of IBM sufficiently rises to the point where you are willing to sell. You pay the broker back its $6,000, and you enjoy the capital gain.

Answers

Answer:

False

Explanation:

This is a True/False question and the answer is false because of the reason highlighted below.

When there's a decrement in the values of the market price of a 100 shares, there's a high probability that one will receive a margin call. The essence of the margin call is none other than asking to make up for the loss in the decreased value of the 100 shares because legally, the brokerage firm have the right to sell one's shares in other to cover your losses.

And also because, buying on margin can never be an "interest free.", this is the reason why the broker will demand the payment of interest on the loan.

Final answer:

The question discusses margin trading in the stock market, where the investor borrows money from a broker to buy more shares. In this example, the investor buys 100 IBM shares at $120 each, contributing half the total cost and borrowing the rest. If the share price rises, the investor can sell, repay the loan, and make a profit.

Explanation:

The topic here is related to stock market investing and more specifically, margin trading. When you buy on margin, you are essentially borrowing money from your broker to purchase more stocks than you could with just your available cash. In your example, you bought 100 shares of IBM for $120/share, which totals $12,000.

Since the margin on your account is 50%, this means that you only need to provide half of this amount, or $6,000, and the broker will loan you the remaining $6,000. The goal is that the price of IBM shares sufficiently rises, at which point you may choose to sell your shares, repay the broker's $6,000 loan, and then keep any remaining profit as your capital gain.

Learn more about Margin Trading here:

brainly.com/question/33051597

#SPJ3

Other Questions
4th Time posting same QUSETION; I have due on tomorrow assignment; please some one help and provide correct answer.Problem 9-17WACC EstimationThe table below gives the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains.Travellers Inn: December 31, 2012 (Millions of Dollars)Cash $10 Accounts payable $10Accounts receivable 20 Accruals 10Inventories 20 Short-term debt 5Current assets $50 Current liabilities $25Net fixed assets 50 Long-term debt 30Preferred stock 5Common equity Common stock $10Retained earnings 30Total common equity $40Total assets $100 Total liabilities and equity $100The following facts also apply to TII:1. Short-term debt consists of bank loans that currently cost 8%, with interest payable quarterly. These loans are used to finance receivables and inventories on a seasonal basis, bank loans are zero in the off-season.2. The long-term debt consists of 30-year, semiannual payment mortgage bonds with a coupon rate of 8%. Currently, these bonds provide a yield to investors of rd= 12%. If new bonds were sold, they would have a 12% yield to maturity.3. TII's perpetual preferred stock has a $100 par value, pays a quarterly dividend of $2.50, and has a yield to investors of 11%. New perpetual preferred would have to provide the same yield to investors, and the company would incur a 3% flotation cost to sell it.4. The company has 4 million shares of common stock outstanding. P0 = $20, but the stock has recently traded in price the range from $17 to $23. D0 = $1 and EPS0 = $2. ROE based on average equity was 26% in 2008, but management expects to increase this return on equity to 31%; however, security analysts and investors generally are not aware of management's optimism in this regard.5. Betas, as reported by security analysts, range from 1.3 to 1.7; the T-bond rate is 10%; and RPM is estimated by various brokerage houses to be in the range from 4.5% to 5.5%. Some brokerage house analysts reports forecast dividend growth rates in the range of 10% to 15% over the foreseeable future.6. TII's financial vice president recently polled some pension fund investment managers who hold TII's securities regarding what minimum rate of return on TII's common would make them willing to buy the common rather than TII bonds, given that the bonds yielded 12%. The responses suggested a risk premium over TII bonds of 4 to 6 percentage points.7. TII is in the 35% federal-plus-state tax bracket.8. TII's principal investment banker predicts a decline in interest rates, with rd falling to 10% and the T-bond rate to 6%, although the bank acknowledges that an increase in the expected inflation rate could lead to an increase rather than a decrease in interest rates.Assume that you were recently hired by TII as a financial analyst and that your boss, the treasurer, has asked you to estimate the company's WACC under the assumption that no new equity will be issued. Your cost of capital should be appropriate for use in evaluating projects that are in the same risk class as the assets TII now operates. Do not round intermediate steps. Round your answer to two decimal places.%NOTE:Wrong Answers:14.29% & 14.76% --> Please someone give me right answer, I am posting same question 4th time; please dont post spam.--> It's Problem 9-17 of mangerial finance course WACC Estimation problem; required to consider above table with given 8 assumption to get WACC value; it will be only one answer liike 15.12%; 17.32%.....