Question 2

Question 3

Question 4

You own shares representing 25% of Sinclair Company. You paid $500,000 for these shares 5 years ago. The corporation has 3 other shareholders each with a 25% equity position in the company. The corporation has grown over the past 4 years and your shares are now worth $1,000,000. The corporation recently issued bonds in the amount of $4,000,000 to fund an acquisition. The acquisition was a disaster and the company is now unable to meet its interest commitments and is on the verge of bankruptcy. There are no other debts. As a 25% shareholder, what is the maximum potential loss you could have if the company declares bankruptcy? Explain. How would your answer change if the company was a general partnership instead? In 2019, the average annual salary in Canada was $52,600. In 1967 it was $15,776. What is the annual percentage increase in salary for this 52-year period? At a rate of 6% compounded annually, approximately how long would it take for your money to grow to twelve times its original value? Angela and Bill are saving for a down payment on a house. They have $25,000 to invest. Bill wants to invest the funds in an investment expected to earn 5% compounded annually over the next 5 years. Angela wants to invest in a riskier investment which is expected to earn 8 % compounded annually over the next 5 years. How much more would they have to invest today in the less risky investment to achieve the same value as they would earn by holding the riskier investment in 5 years' time