29) Compute the present value of an ordinary annuity that pays S11,000 per year

Question

29) Compute the present value of an ordinary annuity that pays S11,000 per year for 15 years at 7% Present value of annuity of $1 13 8.358 7.904 103 6.424 159.1088.559 3676.628 8.061 76066.81 A) $100,921 B) $100,958 C) $100,188 30) Which of the following is true of a corporation? D) $9,41R A) A corporation has a limited life. B) A corporation cannot be privately held C) The stockhold D) The . rs of a corporation have unlimited liability for the corporation's debt earnings of a corporation may be subject to double taxation. 31) Which of the following statements is true of a corporation? 31) A) Shareholders are authorized to sign contracts or make business commitments on behalf of the corporation. B) Shareholders can be required to pay debts of the corporation. C Corporations pay income tax on corporate earnings, and shareholders pay income tax on corporate dividends. D) Shares of stock cannot be readily purchased and sold by investors on an organized stock exchange. 32) Which of the following is an advantage of the corporate form of business? A) limited liability of stockholders B) less degree of government regulation C) separation of ownership and management D) low start-up costs 33) 33) Outstanding stock represents shares of stock that A) are held by the stockholders B) have been authorized by state law C) are sold for the highest price D) have been issued but may or may not be held by stockholders 34) A) Stockholders may determine the issue price of common stock. s from corporate earnings. 34) Which of the following is a basic right of stockholders? authorize a business contract on behalf of the corporation D) Stockholders may sell their stock back to the company if they wish. B) paid-in capital and retained earnings D) common stock and bonds sources of stockholders' equity are A) common stock and preferred stock C no-par and stated value stock 35) The two basic

Explanation / Answer

Question 29). Answer :- Option C). $ 100,188.

Explanation :-

Present value of annuity = 11000 * Cumulative present value factors for 15 years at an interest rate of 7 %.

= 11000 * 9.108

= $ 100,188 (Option C).

Question 30). Answer :- Option D). The earnings of a corporation may be subject to double taxation.

Question 31). Answer :- Option C). Corporations pay income tax on corporate earnings, and shareholders pay income tax on corporate dividends.

Question 32). Answer :- Option C). Separation of ownership and management.

Question 33). Answer :- Option A). are held by the stockholders.

Question 34). Answer :- Option B). Stockholders may receive dividends from the corporate earnings.

Question 35). Answer :- Option B). Paid-in capital and retained earnings.

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