This year, Faro Incorporated, a calendar year taxpayer, issued 500 shares of its publicly traded stock as a bonus to its employee, Mrs. Doyle. On the date of issuance, the stock’s fair market value was $17,900. Required:

What are the tax consequences to Mrs. Doyle and Faro if Mrs. Doyle’s ownership of the stock was fully vested on the date of issuance (the stock was transferable and not subject to risk of forfeiture).

What are the tax consequences to Mrs. Doyle and Faro if Mrs. Doyle can’t dispose of the stock before July 1, 2025, and if she quits her job with Faro before that date, she must forfeit the stock back to Faro. Mrs. Doyle made no election with respect to the restricted stock.

Kinkead inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its fcf at t = 2 will be $20 million. after year 2, fcf is expected to grow at a constant rate of 4% forever. if the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.