4. timco shares are currently valued at 53 each. there are two million outstanding. last year, the dividend was 2, but we expect it to grow at 8% forever. net income is expected to be 10 million. the firm uses 40% debt in their capital structure. they can borrow more at 4%. the tax rate is 35%. new shares can be sold for 6% flotation costs. find the breakpoint and the wacc before and after. (9.47, .083, .0844).

Ann and jack have been partners for several years. their​ firm, a​ & j tax​ preparation, has been very​ successful, as the pair agree on most​ business-related questions. one​ disagreement, however, concerns the legal form of their business. for the past two​ years, ann has tried to convince jack to incorporate. she believes that there is no downside to incorporating and sees only benefits. jack strongly​ disagrees; he thinks that the business should remain a partnership forever. ​ first, take​ ann's side, and explain the positive side to incorporating the business. ​ next, take​ jack's side, and state the advantages to remaining a partnership. ​ lastly, what information would you want if you were asked to make the decision for ann and​ jack? which of the following statements are the advantages of a partnership compared to a​ corporation? ​(choose all that​ apply.) a. less expensive to organize. b. ownership is readily transferable. c. lower income taxes. d. owners have limited liability. e. long life of firm.