Under the impulse of money‚ people may act somehow unethical. For example: Benefit themselves from prejudicing the interests of others. The financial term economic bubble is refers to “the temporary condition caused by unjustified speculation in the price of a stock or commodity to a level that bears no relation to its real worth or potential.” (business dictionary.com) Throughout the history of finance‚ there are many notable bubbles. Numerous people paid heavy prices to endure the consequences
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Article 1. Nature of the tax The income tax on individuals is a personal‚ direct tax levied according to the principles of equality‚ universality and progressivity‚ the income of individuals according to their nature and their personal and family circumstances. Article 2. Object of the tax The object of the taxpayer’s income tax‚ understood as the entirety of their income‚ capital investments and losses and income allocations established by law‚ regardless of where they may have occurred and
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Financial Management Mock Midterm Name___________________________________ 1) Which of the following organization forms accounts for the greatest number of firms? A) Limited Partnership B) "S" Corporation C) "C" Corporation D) Sole Proprietorship Section: 1.1 The Four Types of Firms 2) The person charged with running the corporation by instituting the rules and policies set by the board of directors is called A) the Company President. B) the Chief Operating Officer. C) the Chief Executive
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Consideration in contract formation ------------------------------------------------- Top of Form Consideration is essential to the formation of any contract made without deed. It distinguishes a bargain or contract from a gift. Lush J in the case of Currie v Misa (1875) referred consideration consist of a benefit to the promisor or a detriment to the promisee as: “Some right‚ interest‚ profit or benefit accruing to one party‚ or some forbearance‚ detriment‚ loss or responsibility given‚ suffered
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1. A change in the amortization rate for an intangible asset should be accounted for as a a. change in accounting principle. b. change in reporting entity. c. correction of an error. d. change in accounting estimate d 2. Wriglee‚ Inc. went to court this year and successfully defended the brand name of its product‚ "Sweet Gum‚" from infringement by a competitor. The cost of this defense should be charged to a. patents and amortized over the legal life of the patent. b. legal fees and amortized
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help meet the investment‚ protection‚ retirement and lifestyle needs of more than 15 million customers. Genworth operates through three segments: Retirement & Protection (which includes Life Insurance‚ Long Term Care‚ and Fixed and Variable Annuities)‚ U.S. Mortgage Insurance and International (which includes payment protection products). Its products and services are offered through financial intermediaries‚ advisors‚ independent distributors and sales specialists. Genworth Financial‚ which
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Interest Income C. Dividend Income D. Other (Net) Income—Reduced by Deductible Expenses 1. State & Local Income Tax Refunds 2. Alimony Received 3. Business Income or Loss 4. Capital Gains or Losses 5. Taxable IRA Distributions‚ Pensions‚ & Annuities 6. Rents‚ Royalties‚ Partnerships‚ S-Corporations‚ Estates‚ Trusts 7. Unemployment Compensation & Social Security 8. Other Income II. Less “Above the Line” Deductions— A. Unreimbursed Qualified Moving Expenses B. ½ of Self-Employment Tax C
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Time Value of Money Exercise 1. If you invest $1000 today at an interest rate of 10% per year‚ how much will you have 20 years from now‚ assuming no withdrawals in interim? 2. a. If you invest $100 every year from the next 20 years starting one year from today and you earn interest of 10% per year‚ how much will you have at the end of the 20 years? b. How much must you invest each year if you want to have $50000 at the end of the 20 years? 3. What is the present value of the following
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1. Question : (TCO 1) The goal of financial management is to increase the: Student Answer: future value of the firm’s total equity. book value of equity dividends paid per share current market value per share number of shares outstanding‚ thereby increasing the market value of equity Instructor Explanation: Chapter 1‚ Page 10 Points Received: 0 of 3 Comments: 2. Question : (TCO 1) When analyzing alternative capital structures for
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Period (n) =10 years At IRR‚=10%‚Net Present Value of Investment=0 i.e. Present Value of 10 years Cash Flow-Initial Investment=0 Initial Investment =Present Value of 10 year Cash Flow We will get Present value of 10 year equal cash flow(CF) using annuity formula Initial Investment=CF*(1-(1+IRR)^(-n))/IRR $212000=CF*(1-(1+10%)^(-10))/10% CF=$212000*10%/(1-0.385543) CF=$212000*10%*0.614457 CF=$345020.6 So Polaris must earn =$345020.6 from these projects for 10 years so that IRR becomes 10% Ques 2
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