Answer:
Dividend growth rate is 4.94%
Explanation:
The share price formula comes handy in this case in determining the dividend growth rate.
Share price=Next year dividend/expected return-dividend growth rate
share price is $83
next year dividend is $5.61
expected return is 11.7%
Dividend growth rate is the unknown which is denoted by g here
$83=$5.61/11.7%-g
by cross multiplication the equation becomes:
$83*(11.7%-g)=$5.61
divide both sides by $83
11.7%-g=$5.61/$83
11.7%-g=0.06759
g=11.7%-0.06759
g=0.117-0.06759
g=0.04941
g=4.94%
Answer:
B. Any one of the partners can be held solely liable for all of the partnership's debt.
Explanation:
In a partnership the liabilities of the partners are not limited to the share they contributed in the partnership, rather they can be individually held liable if the partnership is not able to meet the debt.
Further the taxation of profits under the partnership is based on the principle similar to sole proprietorship, as the profits are taxed in the hands of partners and not in the hands of partnership firm.
All the partners are equally liable for the operations of business, and there are types of partners, active partner, sleeping partner, etc:
Answer:
Susan qualifies for the loan under section 403(b) plan at work. However, this loan should be well negotiated as regards repayment of the interest elements and the principal.
Explanation:
When a loan is taken up, one has invariably taken up the pledge to repay the Principal component and the Interest element. At the point of funding the loan, a good and favorable interest rate should be well negotiated. As an active employee, the repayment is taken from the monthly pay, after the deduction of statutory tax payment.
It must be advised that Susan should pursue the intention of applying for the loan with utmost faithfulness, as a deviation from this will be frowned upon. Such loan are not to be invested and/or diverted for other purposes.
Susan should properly understand the attending obligation before her - the repayment of principal and interest within the agreed period of time. A default is not advised as this comes with a penalties. The entirety of the loan may be treated as an income, and subsequently taxed in same breath. Plus other penalties.
Answer:
2) Chemotherapy for cancer patients
Explanation:
Chemotherapy for cancer patients is a basic necessity needed for the patient to continue living, so if the price of chemotherapy increases or decreases will not affect the patient's choice of getting it. What can affect the patient's decision is whether he/she can afford the treatment, but even if he/she can't they will seek other ways of trying to obtain it, e.g. going to public hospitals.