Firm A and Firm B are identical except that A is incorporated while B is an unlimited liability partnership. Both have assets worth $500,000 ($500K) funded with a debt ratio of 40 percent. Suppose that the assets suddenly become worthless, what is the maximum possible loss to the equityholders of each company?

Question

09-06-2022
Business

contestada

Firm A and Firm B are identical except that A is incorporated while B is an unlimited liability partnership. Both have assets worth $500,000 ($500K) funded with a debt ratio of 40 percent. Suppose that the assets suddenly become worthless, what is the maximum possible loss to the equityholders of each company?

Respuesta :

Otras preguntas

¿por qué tuvo que salir Cortés de Tenochtitlán y volver a la costa?

A triangle has two sides that measure 0.5 meters and 1.5 meters. Which could be the measure of the third side? A. 1.3 m B. 1 m C. 2 m D. 3 m

Peter wants to query to determine the names of students who scored more than 95 in the internal assessment test. Which function should he use in the query?

What happened in the North of the U.S. as a result of the “Great Migration”?

How does waves change over the beach anyone can help

Population growth during the glide age was due in large part to

11. When the United States Supreme Court ruled on Worcester v. Georgia in 1832, which role of a judiciary was it fulfilling? determining the difference between

How do cells synthesize and breakdown macromolecules?

Using "president Cleveland, where are you?" respond to the following prompt: Explain how authors use historical times or events as a basis for fiction. How do a

All flowering plants are gymnosperns true or false

gauravsingh23VT gauravsingh23VT · Answer 1 · 2022-06-15T07:22:09+02:00

The maximum possible loss to the equity holders of Firm A is $300k and for firm B is $500k. As the A is incorporated while B is an unlimited liability partnership.

What is an unlimited liability partnership?

Unlimited liability partnership is between the partners and sole proprietor where all the partners shares all the debts, liability and profits equally.

The main reason of doing unlimited liability partnership is when the partners are not able to increase their investment.

Thus, Firm A is $300k and for firm B is $500k.

For more details about Unlimited liability partnership, click here:

https://brainly.com/question/13034193

#SPJ1