Employees of the valley country club are allowed to use the golf course without charge before and after working hours on mondays when the number of players on the course is at its lowest. tom, an employee of the country club, played 40 rounds of golf during the year at no charge when the nonemployee charge was $20 per round.
a. tom must include $800 in gross income.
b. tom is not required to include anything in gross income because it is a de minimis fringe benefit.
c. tom is not required to include the $800 in gross income because the use of the course was a gift.
d. tom is not required to include anything in gross income because this is a "no-additional-cost service" fringe benefit.
e. none of the above

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

Social computing forces companies to deal with customers as opposed to

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805