Midterm Exam Business Valuation and Stock Valuation free essay sample

It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required. (b) Corporations face fewer regulations than sole proprietorships. (c) One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level. (d) One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership. If a regular partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business. (2) (TCO G) A security analyst obtained the following information from Prestopino Products’ financial statements: Retained earnings at the end of 2009 were $700,000, but retained earnings at the end of 2010 had declined to $320,000. †¢ The company does not pay dividends. †¢ The company’s depreciation expense is its only non-cash expense; it has no amortization charges. We will write a custom essay sample on Midterm Exam Business Valuation and Stock Valuation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page †¢ The company has no non-cash revenues. The company’s net cash flow (NCF) for 2010 was $150,000. On the basis of this information, which of the following statements is CORRECT? (Points : 10) (a) Prestopino had negative net income in 2010. ( b ) Prestopino’s depreciation expense in 2010 was less than $150,000. (c) Prestopino had positive net income in 2010, but its income was less than its 2009 income. (d) Prestopino’s NCF in 2010 must be higher than its NCF in 2009. (e) Prestopino’s cash on the balance sheet at the end of 2010 must be lower than the cash it had on the balance sheet at the end of 2009. Which of the following is most likely to occur? (Points : 10) (a) The required rate of return for an average stock will increase by an amount equal to the increase in the market risk premium. (b) The required rate of return will decline for stocks whose betas are less than 1. 0. (c) The required rate of return on the market, rM, will not change as a result of these changes. (d) The required rate of return for each individual stock in the market will increase by an amount equal to the increase in the market risk premium. (e) The required rate of return on a riskless bond will decline.

PARAPHRASING Essays - Emotions, Happiness, Personal Life

PARAPHRASING Essays - Emotions, Happiness, Personal Life PARAPHRASING 1.Once a private act of perhaps the most intensely familial nature, eating together has become for many Americans a public act evolving others in a variety of relationships, few of which are matters of blood. James Helmer states that for many of the Americans, having food together, which has profounding familial nature, is a public performance of developing various new kinships, in which only a little is about blood relations. 2.McDonalds would win because it, better than any of its competitors, was able to catch up and exploit in its advertising a number of significant historical and contemporary development in American community and family life. The success of McDonalds advertisement is that, it succeeded in communicating and conveying about the remarkable historical and modern progress in American society and family life far better than any of its opponents. 3.Specifically, it demonstrates how familial images were employed as a means of persuasion that ultimately portrayed McDonalds as a potential source of love and human happiness as a place of being family. In advertisements, McDonalds presents various familial images, which depicts family as a place of love and affection of ultimate human happiness. 4.Family for some of these people no doubt meant these similar others, or perhaps the people with whom they worked or carried on some other activity. To few people in America family means, people who are alike them or may be people with they are engaging in some works or other activity. 5.What McDonalds would do was paint itself as many things that answered peoples basic and powerful need for someone to mend the fragments with caring. The action of McDonald is that it refines itself in many terms as to answer publics essential and strong requirements, which requires someone to restore broken pieces with care.