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Darina [25.2K]
3 years ago
6

You own 180 shares of stock in Halestorm, Inc., that currently sells for $82.45 per share. The company has announced a dividend

of $3.05 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4
Business
1 answer:
bearhunter [10]3 years ago
3 0

Answer:

New stock value = $79.40

Total stock value = $14,292

Explanation:

GIVEN the following ;

Number of shares of stock = 180

Current price = $82.45 per share

Dividend = $3.05 per share.

Ex dividend date = February 4

Value of stock on February 4 =?

The Ex dividend date may be regarded as the day whereby payment of dividend and reinvestment is held.

Assuming no taxes, The value of the stock will drop by the same amount of the current dividend on February 4.

Therefore,

New stock value = current stock price - dividend per share

New stock price = $82.45 - $3.05 = $79.40

New stock value = $79.40 per share.

Total stock value :

$79.40 × 180 = $14,292

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A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume
tangare [24]

Answer:

a. What is the MRP?

marginal revenue product = marginal product of labor x marginal revenue per output unit

MRP = 1,500 packages x $0.10 per package = $150

marginal resource cost (MRC) = $100 (the cost of renting the delivery truck)

The company should add the delivery truck because MRP is higher than MRC.

b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?

MRP = $150 (doesn't change from question a)

MRC = $200 (the cost of renting the delivery truck)

The company should not add the delivery truck because MRP is less than MRC.

c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation?

MRP = 750 packages x $0.10 per package = $75

MRC = $100

The company should not add the delivery truck because MRP is less than MRC.

7 0
3 years ago
Why do we subtract depreciation in the calculation of EBIAT if we are going to add it back as the next step of the Free Cash Flo
vladimir1956 [14]

Answer: Depreciation is tax deductible

Explanation:

Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.

Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.

3 0
2 years ago
When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT:
saveliy_v [14]

Answer and Explanation:

b. Previous expenditures associated with a market test to determine the feasibility of the project, provided those costs have been expensed for tax purposes.

3 0
3 years ago
Logan, a 50 percent shareholder in Military Gear Inc. (MG), is comparing the tax consequences of losses from C corporations with
Musya8 [376]

Answer:

$9,840

Explanation:

In this question, we have to take the difference between the payment for S corporation and the C corporation

If Military Gear Inc is a C corporation, then the payment would be

= Ordinary income × marginal tax rate

= $84,000 × 24%

= $20,160

And, if Military Gear Inc is a S corporation, then the payment would be

= (Ordinary income - net effect) ×  marginal tax rate

= ($84,000 - $41,000) × 24%

= $43,000 × 24%

= $10,320

The net effect would be

= $159,000 - $118,000

= $41,000

The net payment would be

= $20,160 - $10,320

= $9,840

4 0
3 years ago
ACCOUNTING:
Oksana_A [137]

Explanation:

why is this so much who assigned you this

3 0
3 years ago
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