Answer: $89.68
Explanation:
The Ex-dividend measures how much a stock price drops as a result of the disbursement of dividends. It is calculated by subtracting the dividend from the current stock price.
In the above question the IRS require that taxes be withheld at the time that the dividend is paid.
This means that taxes have to be accounted for first before ex - dividend is calculated.
After tax dividend = 5.40 * ( 1 - 0.2)
After tax dividend = $4.32
Solving for Ex-dividend gives,
= 94.00 - 4.32
= $89.68
The ex-dividend price will be $89.68
Answer:
Explanation:
The journal entries are shown below:
On 1 June 2020
Accounts receivable A/c Dr $50,925
To Sales revenue $50,925
(Being goods are sold on credit)
On July 12 2020
Cash A/c Dr $50,925
To Accounts receivable A/c $50,925
(Being cash received is recorded)
The computation is shown below:
= Sales amount - discount
= $52,500 - $1,575
= $50,925
And, The discount = Sales amount × discount rate
= $52,500 × 3%
= $1,575
How are we going to answer without the choices?
Answer:
$5,681
Explanation:
As this is a residential property the Modified Accelerated Cost Recovery System (MACRS) depreciation rate is applicable.
Also as it was sold during the month, the mid month convention is also in effect which states that when an asset is sold during the month, only 15 days of that month are considered for depreciation assuming a 30 day month.
The straight line rate for MACRS after the first year for this residential property is 3.636% per annum.
The asset didn't last the entire year so this needs to be accounted for.
Out of 12 months it lasted 7 months till July and 15 days in August which means it lasted 7.5/12 of the year.
Depreciation for the year is, therefore,
= 250,000 * 3.636% * 7.5/12
= $5,681
Answer:
9.04%
Explanation:
The computation of firm's WACC is shown below:-
MV of equity = Price of equity × Number of shares outstanding
= $68 × 12,200
= $829,600
MV of Bond = Par value × bonds outstanding × Percentage of par
= $1,000 × 370 × 0.951
= $351,870
MV of firm = MV of Equity + MV of Bond
= $829,600 + $351,870
= $1,181,470
After tax cost of debt = Cost of debt × (1 - Tax rate)
After tax cost of debt = 5.99 × (1 - 0.39)
= 3.6539
Weight of equity = MV of Equity ÷ MV of firm
= $829,600 ÷ $1,181,470
=0.7022
Weight of debt = MV of Bond ÷ MV of firm
= $351,870 ÷ $1,181,470
= 0.2978
WACC = After tax cost of debt × Weight of debt + Cost of equity × Weight of equity
= 3.65 × 0.2978 + 11.33% × 0.7022
= 9.04%
