Answer:
C) Part of the $1,500 fee will be disallowed due to the holding of the municipal bonds
Explanation:
the investment-related expenses are deductible as the miscellaneous itemized deductions. in the case the tax-exemp securities are help, the proportionate investment-related expenses are allocated to these securities and the are not allowed since the income is tax-exempt.
Answer:
the second option
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
first option
Cash flow in year 1 and 2 - $85,000
1 = 7
PV = $153,681.54
Second option
Cash flow in year 0 = $20,000
Cash flow in year 1 and 2- $74,000
I = 7
PV = $153,793.34
the pv of the second payment is higher than the first so the seconf would be choosen
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
153,681.54
Answer:
The answer is : The payment to common shareholders will total $19,500
Explanation:
Because preferred share has priority to receive dividend over common shares, the amount of dividend declaration must fulfill the firm's commitment to its preferred shareholders before the residual amount may be distributed among common shareholders.
Amount of dividend needs to be paid to preferred share holders = Number of share x Par value per preferred share x % dividend = 1,000 x 10 x 5% = $500.
The residual amount of dividend declaration which will go to common shareholders = 20,000 - 500 = $19,500.
=> Thus, the answer is $19,500.
