Answer:
The expected/required rate of return is 13.8125%.
Explanation:
The stock is a constant growth stock as the dividends are expected to grow constantly forever. The constant dividend growth model of DDM is used to calculate the price of such a stock today. As we already know the price, we will use the formula of the constant growth model to determine the required rate of return. The formula for constant growth model is:
P0 or Price today = D1 / r - g
Plugging in the available known values,
16 = 1.25 / (r - 0.06)
16 * (r - 0.06) = 1.25
16r - 0.96 = 1.25
16r = 1.25 + 0.96
r = 2.21 / 16
r = 0.138125 or 13.8125%
They help with people being able to get rid of the weakest links
Answer: Liquidation value
Explanation:
The liquidation value is one of the type of physical assets of an organization and the business value, real estate firms, directories and the equipment are refers as the liquidation value that helps in evaluating the overall worth of the firm.
This organizational value is lower as compared to the market value and it has less time for selling the products in the open market.
According to the given question, the liquidation value is refers as the actual amount of the stockholder expected value value in the market. Therefore, Liquidation value is the correct answer.
Answer:
a. Brad might be allowed to deduct up to $25,000
or Brad may be allowed to deduct the loss if he works more than 750 hours as a material participant in connection with the townhouse complex and more than half of personal service.
b. The reduction is equal to 50% of AGI in excess of $100,000. The deduction will be phased out completely if AGI reaches $25,000
Explanation:
Adjusted Gross Income is the final taxable income after all the allowable deductions are adjusted in the income. A tax payer can deduct up to $25,000 for the passive losses. This is standard deduction which Brad can deduct from the income.
Answer:
e. Country B, where education is well-developed and social stratification is lacking.
Explanation:
Country B will be the best option because the population is well-developed in terms of education, so there will be availability of skilled labour for the production plant.
Also lack of social stratification means there is no well-developed social stratification into upper, middle, and lower classes. Success will be due to individual achievement, so the people will be motivated to work hard and exploit the opportunity of growing in the new production plant.
