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1. Suppose a firm's tax rate is 35%. What affect would a $10 million operating expense have on this year's earnings? What effect would it have on next year's earnings?
2. What effect would a $10 million capital expense have on this years earnings if the capital is depreciated at a rate of $2 million per year for five years? What effect would it have on next years earnings?
3. Suppose the risk free interest rate is 4%. Having a $200 today is equivalent to having what amount in one year? Having $200 in one year is equivalent to having what amount today? Which would you prefer,$200 today or $200 in one year?
4. Your firm has a risk free investment opportunity where it can invest $160,000 today and receive $170,000 in one year, for what level of interest is this project attractive?
Unity of Command Unity of command is the principle in which each subordinate should be responsible to only one manager.
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Briefly define the terms proprietorship , partnership , and corporation . A proprietorship is a business possessed by one person. Two or more people who unite together to
Accounting to Budget: Accounting to budget is a commonly used term to describe how an organisation controls its accounting process. Typically, an organisation divides its re
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QUESTION a) Discuss the importance of diversification in the context of stock markets using appropriate numerical illustrations. b) Mimine and Minush are two companies with
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discuss the applicability
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