Answer: $25,000
Explanation:
When a company owns less than 20% of another company and receives dividends from that company, they are allowed to deduct 50% of that dividend for tax purposes.
Bay Fig owns 10%(less than 20%) of the domestic corporations so qualifies for the 50% reduction:
= Dividends * 50%
= 50,000 * 50%
= $25,000
Answer:
Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.
For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.
Initial outlay $100
NCF year 1 = $40
NCF year 2 = $40
NCF year 3 = $40
Using the real discount rate, the NPV = $8.93
Using the nominal discount rate, the NPV = -$0.53
Answer:
A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares."
Stocks are bought and sold predominantly on stock exchanges (though there can be private sales as well) and are the foundation of many individual investors' portfolios. These transactions have to conform to government regulations that are meant to protect investors from fraudulent practices. Historically, they have outperformed most other investments over the long run. These investments can be purchased from most online stockbrokers
Explanation:
hope it helps
Answer:
How long does it take The Mountain Top Shoppe to pay its suppliers?
25 days
Explanation:
Sales $512,000
COGS 71%
COGS $363,520
Av Acc Receiv 31.400
Av Acc Payable 24.800
Days 365
DPO - Days Payables Outstanding ==> ($24,800/$363,520)*365= 25 Days
