Answer:
1. C
2. B. 13.65%.
Explanation:
1. Some of the portion of Earnings After Tax is given out to Shareholders in the form of Dividends and some of it is retained for growth Purposes. As the Retained Earnings are used for expansion and growth, that's why the formula for Growth is (ROE)*(Retention Ratio). When companies pay out large amount of dividends, it is left with minimal amount for retention which affects its growth rate and the rate tends to decrease.
If you look at the model of Constant Growth, also given in the question, the Growth Rate is deducted in Denominator. A lower growth rate will increase the denominator value and hence the stock price will go down.
2. Rearrange the formula for Constant Growth:
P0 = D1 / (Ke - g) OR Ke = (D1/P0) + g
⇒ Ke = (.85/20.5) + .095 = .1365 OR 13.65%.
Answer:Don's casualty loss deduction=$ 770
Explanation:
A Casualty loss is an unexpected or sudden financial loss that occurred as a result of damage or loss of property. It will be calculated as follows
Adjusted basis at the time of accident $1,500
Repair cost on account of accident $2,750
Amount of casualty loss before the adjustments $ 1,500
( which is the Lessor of $ 1,500 and $ 2,750)
Deduct :
Reimbursements gotten from insurance $ 730
Don's casualty loss deduction = $ 1,500 - $ 730 = $ 770
B. Human skills are the most important at all levels of management.
They both use taxes to support a country’s growth. They both invest money to earn a profit. They both receive capital to use for growth. They both act as angel investors for start-ups.
They both invest money to earn a profit. This statement best describes the role that government and business play in investments.
Answer:
Walmart if you're 17
Explanation:
they make 50 k that's not that bad