Explanation for all please

6. Suppose your credit card issuer states that it charges a 15.00% nominal annual rate, but you must make m athly payments, which amounts to monthly compounding.What is the effective annual rate? a. 15.27% b. 16.08% c. 16.88% d. 17.72% e. 18.61% 7. Which of the following statements is CORRECT? a. If a corporation elects to be taxed as an S corporation, then both it and its stockholders can avoid all Federal taxes. This provision was put into the Federal Tax Code in order to encouragerthe formation of small businesses. The more capital a firm is likely to require, the smaller the probability that it will be organized as a corporation b. c. It is generally easier to transfer one's ownership nterest in a partnership than in a d. One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. This problem would be avoided if you formed a corporation to operate the business. e. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation. New Business is just being formed by 10 investors, each of whom will own l0% ofthe business. The firm is expected to earn $1,000,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. The firm does not need to retain any earnings, so all of its after-as income will be paid out as dividends to its investors. The investors will have to pay personal taxes on whatever they receive. How much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation? a. $20,384 b. $20,800 c. $21,225 d. $21,658 e. $22,100 8. Janice has $5,000 invested in a bank that pays 3.8% annually. How long will it take for her funds to mple a. 23.99 b. 25.26 c. 26.58 d. 27.9 c. 29.46 9. Which of the following is not one of the five basic corporate finance functions? a external financing function b. capital budgeting function 10. d. auditing