Your sister is thinking about starting a new business. The company would require $300,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business?
A. $38,475
B. $44,145
C. $33,210
D. $40,500
E. $41,310
Answer: D
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Jillian, a single taxpayer, has a net long-term capital gain for the year, and it is all made up of 25% long-term capital gain. She has positive taxable income for the year. Which of the following is not a possible tax rate that could be applied in taxing this gain as part of her taxable income?
A. 0%. B. 12%. C. 20%. D. 25%. E. Choices a. and c.
Edie is the payee of a bearer instrument¾a promissory note in the amount of $1,000. Frank offers to irrigate Edie's ranch next week in exchange for the note. Edie agrees and delivers the note to Frank. Frank is
A. an HDC, because he promised to perform services at a future date. B. not an HDC, because he did not take the instrument without notice. C. not an HDC, because he did not acquire the instrument in good faith. D. not an HDC, because he did not yet give value for the instrument.
Which generation has been highly nurtured by family and others, and uses the Internet as their medium for communicating, entertaining, and learning?
A. Baby Boomers B. Generation X C. Generation Y D. Generation Z
The requirements for a patent include all of the following EXCEPT A)the invention must be novel
B)the invention must be nonobvious. C)the invention must be commercially valuable. D)the invention must be useful.