Joel takes out a loan from his local bank at a rate of 5%. He invests 75% of that loan into common shares of ABC Co (making his the owner of all of that company's shares). The other 25% he uses to make an interest free loan to ABC Co. How much of the interest on the loan will be deductible? 0% 25% O 75% 100%
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- A debt instrument where the owner receives a fixed coupon every year until the maturity date and then repays the face value is called a O simple loan. O discount bond. O coupon bond. O fixed-payment loan.Erin's investment account changed by -17% of its value. After this change, the account's value was $13,790. What was its value before this change?Mr.Abdullah specializes on Arbitrage trading. He has got the following quotes regarding 3 currencies GBP 0.739541 / USD AUD 1.3081 / USD GBP 0.563789 / AUD Now he wants to use USD 1000000 and make a profit. Answer the following questions based on the data given above. After converting from USD to GBP and from GBP to AUD, How much will he get in converting AUD to USD in the above process? a. 1715879 b. 1002777.804 c. 739541 d. All the options are wrong e. 1311733.645 After converting from USD to GBP, How much will he get in converting GBP to AUD? a. 739541 b. 1002777.804 c. 416945 d. None e. 1311733.645 How much will he get in converting USD 1000000 to GBP? a. 1311733.645 b. 1002777.804 c. None d. 739541 e. 1352190 Which cross rate should he calculate and compare with actual quotes to make sure that he will get profit a. GBP/AUD b. USD/AUD c.…
- This year Don Adam signs a “Fifty Million Dollar” contract with the Atlanta City Warriors, a new basketball team. He will be paid $10 million per year over the next 5 years beginning next year. The interest rate is 10%, and the Warriors have enough in the bank to generate the payment stream. If the interest rate falls, the present value of this contract will fall. the present value of this contract will be unaffected. the present value of this contract will rise. Don will be paid less than $10 million each year. Don will be paid more than $10 million each year as he can invest the money.You are in the train station waiting for your train to arrive. You see a vending machine from where youcan buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZVendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet ofchips. However, when you open the packet of chips, you find bits of plastic inside and you don’t wantto eat the chips. You want your money back. With reference to the essential elements for the formation of a contract, explain:a) Did you enter into a contract in this scenario?words)b) If your answer is yes, with whom did you enter a contract?David runs his own business. He received an offer from a company for $50,000 per year. If he sells his business, he can get an amount of $100,000. Assume the annual interest rate is 5%. David is confused to run his own business or join the company. David annual revenue from his business is enough to cover all explicit costs and has $60,000 left over. There are no additional implicit costs. Calculate David’s accounting and economic profit.
- What is the main advantage for an LLC or Corporation? Select one: O a. taxes O b. to avoid personal liability O C. to raise capital O d. easy to createIt refers to an annual decrease in value of physical properties with passage of time and use O A. Annuity O B. Depreciation O C. Stock O D. BondYoung MBA Erica Cudahy can invest up to $20,000in stocks and loans. Each dollar invested in stocksyields $0.08 profit, and each dollar invested in a loanyields $0.13 profit. At least 40% of all money investedmust be in stocks, and at least $7000 must be in loans.Determine how Erica can maximize the profit earnedon her investments.
- im not sure if it is CA bank's assets are $670 million and its liabilities are $490 million, which means that the bank's net If the bank's assets rise by 6% at the same time worth (bank capital) is that its liabilities rise by 4%, the bank's new net worth will then be O $1,160 million; $168.8 million O $180 million; $200.6 million O $100 million; $104 million $580 million: $160.5 million5.6 Show What You Know - Buying vs Leasing A Vehicle /22 1. Tyler is a contractor in Winnipeg and needs a new truck for his business. The total purchase price is $59 300.45. He has $5000 saved for a down payment. He needs to decide whether he should buy or lease his vehicle. When you buy or lease a new vehicle you need to pay Federal and Provincial sales tax. Buying Option: O The loan for the purchase includes the taxes and must be repaid in 48 monthly payments of $1195.49 plus the down payment. Leasing Option: O There are 48 monthly payments of $720.25 plus taxes plus the down payment. O The purchase price at the end of the lease is $27 100. a. What is the total cost to buy the truck? b. What is the monthly lease payment including taxes? c. What is the total cost to lease for 4 years? d. What is the cost to buy the truck at the end of the lease? e. How much will Tyler have spent in total if he buys the truck after the four year lease? f. What would you suggest Tyler do and why?