This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements regarding limited partnership is TRUE? A) There is no limit on ... (Read 35 times)

tingc95

  • Hero Member
  • *****
  • Posts: 556
on: Jul 11, 2018
Which of the following statements regarding limited partnership is TRUE?
 
  A) There is no limit on a limited partner's liability.
  B) A limited partner is not liable until all the assets of the general partners have been exhausted.
  C) A general partner's liability is limited by the amount of their investment.
  D) A limited partner's liability is limited by the amount of their investment.

Question 2

White's World Wide Delivery Inc. has an unlevered beta = 1.25, a debt-equity ratio of 0.30, a tax rate of 0.20, and a levered beta = 1.55. If the firm increased the debt-equity ratio to 50, what would be the impact on the levered beta?
 
  A) Increase to a value of 1.75
  B) No change in value.
  C) Decrease to a value of 1.00
  D) There is insufficient information to make a levered beta estimate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

eliasc0401

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

A
Explanation: A) L = (1+(D/E)(1-t)) U
= (1+(.50)(1-.20)1.25 = 1.75.


tingc95

  • Member
  • Posts: 556
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review

Jossy

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Succession in the intertidal zone involves colonization and competition for limited space among spec Succession in the intertidal zone involves colonization and competition for limited space among spec
TrUe....FaLsE TrUe....FaLsE
Sample Exercise Program for Limited Older Adults Sample Exercise Program for Limited Older Adults
How to convert verbal statements into algebraic equations (Part 1) How to convert verbal statements into algebraic equations (Part 1)
True Dover Sole True Dover Sole
A diagram showing one of Mendel’s crosses. True-breeding strains of pea plants with smooth and ... A diagram showing one of Mendel’s crosses. True-breeding strains of pea plants with smooth and ...
Video: Primary Active Transport - electrochemical gradient and ion transport / water movement

For a complete list of videos, visit our video library