Answer:
14.60%
Explanation:
The computation of market rate of return is shown below:-
Market rate of return = (Dividend × (1 + Growth rate)) ÷ Current price of stock + Growth rate
= ($2.8 × (1 + 3.8%)) ÷ 26.91 + 0.038
= ($2.8 × 1.038) ÷ 26.91 + 0.038
= $2.9064 ÷ 26.91 + 0.038
= 0.108 + 0.038
= 14.60%
So, for computing the market rate of return we simply applied the above formula.
Answer:
This question is missing the options given below:
A. 11%
B.13%
C. 15%
D. 17%
E. 20%
The correct answer is option B,the bond current yield is 13%
Explanation:
Bonds Current Yield = Year one cash flow / Current Price x 100 = 9 / 71.375 x 100 = 12.60% or approximately 13%
Note that 71 3/8 is the same as 71.375% as 3/8 gives 0.375 and when added to 71% gives 71.375%
The year cash flow is calculated as :9% of bond par value($100)=$9
Answer:
the unit contribution margin is 65%
Explanation:
Unit contribution margin = Contribution / Selling Price × 100
=($2300000-$805000) / $2300000 × 100
= $1,495,000 / $2,300,000 × 100
= 65%
Answer:
The answer is C.
Explanation:
Gross Domestic Product is the total market value of all final goods and services produced within a country during a given period of time. It is usually a year.
In calculating, GDP, we have expenditure approach, income approach and value-added approach.
In this question, the expenditure approach will be used to explain the answer to this question.
To calculate GDP using expenditure approach, the formula is:
C + I + G + (X-M)
where C is the consumers' spending
I is the investment spending
G is government spending
X is the exports
M is the imports.
The correct answer is C. firms purchases of inventories is part of investment spending. Firms can purchase raw materials(inventory) and process it into finished goods(inventory). The change in inventory(difference between the closing inventory and opening inventory) is part of the calculation of investment spending.
Households buying inventories(finished goods) is part of consumers' spending and not investment spending.
Answer:
1- (a) Progressive.
2- (a) As a capital gain taxed at the long-term tax rate.
3- decreased, reduce, greater
4- required
5- Dividends paid.
Explanation:
1- In the U.S. federal income taxes are progressive. They take a larger share of income as the income grows. People with higher incomes will pay a large percentage of their income as federal tax and people with lower incomes will pay a lower percentage of income.
2- The share are purchased and sold after few years. The investment is kept for more than a year than its capital gains will be taxed at the long-term tax rate.
3- Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income.
4- The tax payers are liable to pay greater if AMT liability or regular tax liability under tax law 1969.
5- Dividends paid are not deducted to derive taxable income. Interest paid is deducted from operating income to calculate taxable income.
