Glenn refuses an invitation to become a partner of dorothy and cynthia in a retail grocery business. nevertheless, dorothy inserts an advertisement in the local newspaper representing glenn as their partner. glenn takes no steps to deny the existence of a partnership between them. ron, who extended credit to the firm, seeks to hold glenn liable as a partner. is glenn liable? explain.

What is the most important type of decision that the financial manager makes?

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Investors who put their own money into a startup are known as a. mannequins b. obligators c. angels d. borrowers