Answer:
options (b),(c) and (e).
Explanation:
Okay let us take the options one after the other;
(a). People in Oregon send money to help cyclone victims in Bangladesh: this is WRONG because the question asked us to identify an INCOME-BASED payment and it is not.
(b). A resident of Maryland buys a car produced by Toyota in Japan: this is CORRECT. The person making the payment is a US resident making payment to a Japanese firm.
(c). Apple corporation pays a stock dividend to a resident of India: This is also CORRECT because Apple is a US based company making payment to Indian(a foreigner).
(d). A foreign exchange student from Paris comma France comma sends wine and cheese to her host family in Columbus comma Ohio : this WRONG because the student is also a foreigner.
(e). Orange Telecom comma a French company comma pays a stock dividend to a resident of Kansas City: this is CORRECT. Orange Telecom is a France company paying income to a foreigner (a U.S resident).
Answer:
0.1875; 0.375; 0.4375
Explanation:
Given that,
Adobe Systems stock = $3,000
Dow Chemical = $6,000
Office Depot = $7,000
Total Value of stock:
= Adobe Systems stock + Dow Chemical + Office Depot
= $3,000 + $6,000 + $7,000
= $16,000
Portfolio weights of Adobe Systems stock:
= Value of Adobe Systems stock ÷ Total Value of stock
= $3,000 ÷ $16,000
= 0.1875
Portfolio weights of Dow Chemical stock:
= Value of Dow Chemical stock ÷ Total Value of stock
= $6,000 ÷ $16,000
= 0.375
Portfolio weights of Office Depot stock:
= Value of Dow Chemical stock ÷ Total Value of stock
= $7,000 ÷ $16,000
= 0.4375
Answer:
$72,000
Explanation:
To calculate investment interest expense dedcution, we need to know the total investment income & total investment interest expenses
Then there're 2 scenarios as followings:
- If the investment interest expenses are less than the net investment income, the entire investment interest expense is deductible.
- If the investment interest expenses are more than the net investment income, we can deduct the expenses up to the net investment income amount. The rest of the expenses are carried forward to next year.
In this example, Ramon's investment income is $72,000 ($34,500 of interest and a $37,500 net capital gain on the sale of securities); is lower than his interest expenses of $83,100.
So Ramon is entiled to deduct $72,000 all the entire investment interest expense in current year
Answer:
facing the speaker and maintaining eye contact
Answer:
7.89%
Explanation:
We can find the IRR of Project A and Project B is 9% and 8% respectively
(please see the calculation in excel in attachment)
So if the interest rate below 8% then Project A is more profitable than project B.
You can find NPV of each project follow the decrease in interest rate in the excel attached.
