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1. Which of the following are required for an acquisition to be considered tax free? 

a. continuity of equity interest

b. a business purpse, other than avoiding taxes, for the acquisition

c. a payment in the form of equity shares for the acquired firm

d. cash payment for the equity of the acquired firm

2. Jamil invested $9,500 in an account he expects will earn 5% annually. Approximately how many years will it take for the account to double in value?

3. Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92794922

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