Answer:
The company's cost of equity capital is 0.056
Explanation:
cost of equity capital
= risk free rate + beta*(expected return on market - risk free rate)
= 0.01 + 0.92*(0.06 - 0.01)
= 0.056
Therefore, The company's cost of equity capital is 0.056
Answer:
Ok but where is the question?
Answer:
The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.
Explanation:
The distribution company distinguishes profit on the distribution, which is included in E&P netting of tax and decreases E&P by rhe lands fair market value fewer the liability believed by the shareholders.
Therefore, The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.
Answer:
Approval and the declaration by the board of directors
Explanation:
The three key requirement for a company to pay dividends are adequate retained earnings , adequate cash and the declaration and approval of the board of directors.
Looking at the provided information for Tesla incorporation ,what is missing is the Approval of the board through declaration of payment.
It was still an intention , so the declaration is still necessary for payment. Other conditions like adequate cash balance and retained earning are are already met
A. Traders borrowing money from their brokers.
