Explain how the tax code allows depreciation to contribute to
BU340 Managerial Finance I
Directions: Be sure to make an electronic copy of your answer
before submitting it to Ashworth College for grading. Unless
otherwise stated, answer in complete sentences, and be sure to use
correct English spelling and grammar. Sources must be cited in APA
format. Your response should be a minimum of one (1) single-spaced
page to a maximum of two (2) pages in length; refer to the
“Assignment Format” page for specific format requirements.
1. What form of partnership allows some of the investors to limit
their liability? Explain by giving examples. (25 points)
2. When does insider trading occur? What government agency is
responsible for protecting against the unethical practice of
insider trading? Explain by giving examples. (25 points)
3. Explain how the tax code allows depreciation to contribute to
cash flow. (25 points)
4. Explain why inflation may restrict the usefulness of the balance
sheet as normally presented. (25 points)our finance text book sold 50,500 copies in its first year.
The publishing company expects the sales to grow at a rate of 18.0
percent for the next three years, and by 5.0 percent in the fourth
year. Calculate the total number of copies that the publisher
expects to sell in year 3 and 4. (If you solve this problem with
algebra round intermediate calculations to 6 decimal places, in all
cases round your final answers to the nearest whole number.) Number
of copies sold after 3 years Number of copies sold in the fourth
2. Find the present value of $3,800 under each of the following
rates and periods.
(If you solve this problem with algebra round intermediate
calculations to 6 decimal places, in all cases round your final
answer to the nearest penny.)
a. 8.9 percent compounded monthly for five years.
Present value $
b. 6.6 percent compounded quarterly for eight years.
Present value $
c. 4.3 percent compounded daily for four years.