Southwestern Bell, a phone company, is considering expanding its operations into the media business. The beta for the company at the end of 2010 was 0.90, and the debt/equity ratio was 1. The media business is expected to be 30 percent of the overall firm value in 2016, and the average beta of comparable firms is 1.20; the average debt/equity ratio for these firms is 50 percent. Estimate the beta for Southwestern Bell in 2016, assuming that it maintains its current debt/equity ratio of 1. Assume a 36% tax rate. Group of answer choices

Which of the following statements is correct? a) due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u. s. businesses (in terms of number of businesses) are organized as corporationsb) most businesses (by number and total dollar sales) are organized as proprietorships or corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships. c) due to legal considerations related to ownership transfers and limited liability, which affect the ability to attract capital, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' less favorable tax treatmentd) large corporations are taxed more favorably than proprietorshipse) corporate stockholders are exposed to unlimited liability

Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.

Sole proprietorships produce more goods and services than does any other form of business organization.