Answer:
c.) $1.73
Explanation:
Price =
D0= Last dividend paid
r= rate of return
g = growth rate
Price =
Price = 0.207 / 0.12
Price = 1.725
Therefore, the current value of the stock is $1.73
I think the most approximate answer would be B.
I hope it helped you!
Answer:
True
Explanation:
The trade off theory states that capital structure decisions involve a trade off between costs and benefits of debt financing. Originally MM argued that a firm's capital structure should be 100% debt, but after accounting for bankruptcy costs, then the firm's capital structure should be less than 100% debt. Companies must substitute debt for equity at different levels (or vice versa if needed) until they reach a balance where the firm's value is maximized.
Answer:
6.201%
Explanation:
Given that,
Net asset value = $12.90
By year-end net asset value = $12.30
Fund paid year-end distributions of income and capital gains = $1.40
change in NAV:
= By year-end net asset value - Net asset value
= $12.30 - $12.90
= -$0.6
Rate of Return:
= (change in net asset value + Distributions) ÷ Start of Year net asset value
= ( -$0.6 + $1.40) ÷ $12.90
= 0.8 ÷ $12.90
= 0.06201 or 6.201%
Answer: Claim the organization as their legal property.
Explanation:
As the sole owners of M and M.Florist, Marie and Marti can claim the organization as their legal property because the law does not separate them from the company like it does to LLCs. This is a Partnership and as such both of them can be held personally liable for the operations of the business including debt repayments if the business fails to do so.
For this reason and more, they are allowed to claim the business as their legal property.