Answer:
a. $28.5
b. 12.28%
c. $29.18
d. 13.09%
Explanation:
a. let current price = p
p*1.10 = 2(1-0.3)+30
= 1.4+30/1.10
= 31.4/1.10
= 28.5
the current price of the stock is approximately 28.5 dollars
b. (30+2 /28.5)-1
= 32/28.5 - 1
= 0.1228
= 12.28%
expected before tax rate is 12.28%
c. 3(1-0.3)+30 / 1.10
= 3*0.7+30/1.10
= $29.18
d. before tax rate of return
= (3$ + 30-29.18)/29.18
= 0.1309
= 13.09%
it is now higher here given that given that a greater dividend causes more tax burden.
Answer:
Cost-plus-fixed-fee pricing
Explanation:
Cost-plus-fixed-fee pricing is when the contractor specifies the expenses of a project and a fixed fee for the services that provides which allows the contractor to earn a profit. In this type of pricing, the overall cost of the project is determined at the end and all the authorized costs are paid to the contractor in full. According to this, the answer is that these contractors use cost-plus-fixed-fee pricing to compensate them for any cost overruns.
Answer:
The amount collected from customers on accounts receivable during year 3 is $535,000.
Explanation:
Cash received from accounts receivable = Opening balance of AR + Credit Sales - Bad debts written off - Closing balance of AR.
- The opening balance for year 3 account receivables was 150000.
- Credit Sales = 600000
- Bad debts = 40000
- Closing Balance = 175000
We can solve this question either by making a T account for accounts receivable or using the equation given above.
Cash = 150000 + 600000 - 40000 - 175000 = $535000
Answer:
C. Deductible.
Explanation:
Variable universal life insurance is insurance that provides permanent insurance coverage as whole life does; however the policyholder, not the insurance company, takes on the investment risk.
A Variable universal life insurance is a type of permanent life insurance policy which avails the holder the opportunity of investing the cash component of the plan (policy) for a much greater returns and as such the investment risk associated with the policy lies completely on the policy holder and not the insurance company.
Additionally, a group life insurance policy can be defined as a single contract plan that covers a group of people by providing life insurance coverage. An employer may opt for a group life insurance policy which would cover the lives of his or her employees.
Deductible is the term used to describe the dollar amount of a physical damage claim paid by the policyholder.
Answer:
The correct statement is C. This statement is misleading because a no-load fund cannot charge more than 25 basis points of 12b-1 fees
Explanation:
THIS STATEMENT IS MISLEADING BECAUSE A NO-LOAD FUND CANNOT CHARGE MORE THAN 25 BASIS POINTS OF 12B-1 FEES.
A mutual fund is not permitted to advertise itself as a "no-load" fund if it charges 12b-1 fees of more than .25% (25 basis points) annually. 12b-1 fees are charges against net asset value that pay for the cost of soliciting new investment to the fund, and they can be used to compensate salespersons that sell the fund's shares.
