Answer:
If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.
A. Investment percentages and maturity delegations
Answer:
Price of stock = $78.143
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.
So we will discount the steams of dividend using the required rate of 11.0% as follows
Price of stock =3.15 × 1.11^(-1) +3.55× 1.11^(-2) +4.05 1.11^(3) +95× 1.11^(-3)
=78.143
Price of stock = $78.143
A test balance is used to detect any calculation error that may have occurred within the accounting system. For this, it is sought to verify if the total debits and the total credits are equal, for this the balance of all accounting books is compiled in column totals of both debit and credit. A company usually prepares a trial balance periodically, usually at the end of each reporting period.
In this case, to carry out the trial balance, you must first clarify the name of the company, the title of the trial balance and the date on which the trial balance is prepared, then proceed to list the ledger accounts and enter the debit and credit balances in the respective columns, then the columns are totalized and finally it is verified that the credit totals are equal to the debit totals
Answer
The correct order of the steps is (3), (2), (4) and (1)
Answer:
Check the explanation as follows.
Explanation:
a) If it is invested in US
Current= $40 million
Interest rate= 0.28% p.m
Interest for 1 month= $40 million*0.28%= $0.112 million
Interest for 3 months= $0.112*3= $0.336 million
Total value after 3 months= $40 million+$0.336 million = $40336000.
b) If it is invested in Great Britain.
Convert $40 million into Pounds= $40 million*0.639 = Pound 25.56 million
Ivest in Great Britain for 3 months @ 0.32%
Interest per month= 25.56 million*0.32% *3 = 0.245376
Total Pounds after 3 months= Pound 25.805376
Convert into $= 25.805376/0.642 = $40195289.7156
Value if invested in great britain= $40195289.7156
