Yee Manages Huang Real Estate,a Partnership in Which She Is

question 22

Multiple Choice

Yee manages Huang real estate,a partnership in which she is also a partner.She receives 40% of all partnership income before guaranteed payments,but no less than $80,000 per year.In the current year,the partnership reports $100,000 in ordinary income.What is Yee's distributive share and her guaranteed payment?

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Definitions:

Weighted Average Cost of Capital (WACC)

Calculating a business's cost of capital by proportionally weighting each capital variety.

Riskiest Divisions

Business units or segments within a company that are subject to the highest levels of uncertainty and potential loss.

Positive NPV

A situation in which the net present value (NPV) of a project or investment is greater than zero, indicating that the projected earnings exceed the anticipated costs in present-value terms.

Cost of Capital

The rate of return that a business must earn on its investment projects to maintain its market value and attract funds.