Answer:
The correct answer is (A)
Explanation:
Normally, goods which close substitutes tend to have more elastic demand as it is easier to switch from one brand to another because they are close substitutes. For example, if the price of Pepsi increases the consumers will easily shift towards Coca-Cola. So, close substitutes are price sensitive and they have high elastic demand compared to other goods.
When the rpt and ctd are done being processed
Answer:
C) $0 $285,000
Explanation:
The §121 exclusion establishes that homeowners can exclude from their capital gains taxes the sale of their property for a maximum of $250,000 gain (or $500,000 for joint filers) if they meet two criteria:
- they owned the property for at last 5 years
- they use the property as main residence for at least 2 years (they can aggregate time periods).
So if Eric and Katie use the §121 exclusion they wouldn't pay any capital gains tax ($500,000 is higher than $375,000).
If they decide to forgo the §121 exclusion, then they will have to pay taxes for a gain of:
capital gain = net sale price - asst basis
capital gain = ($375,000 - $10,000) - $80,000 = $365,000 - $80,000 = $285,000
Answer:
$25.5
Explanation:
Morgan Inc.’s total corporate value = $325 million
notes payable = $90 million
long-term debt = $30 million
preferred stock = $40 million
common equity = $100 million
shares of stock outstanding = $100 million
Market Value of company
= Market Value of debt + Market Value of preferred + Market Value of equity
$325 million = $30 million + $40 million + Market Value of equity
or
Market Value of equity = $325 million - $30 million - $40 million
= $255 million
Share price =
= 
= $25.5