Answer:
For Plan A = 6.7
For Plan B = 7.8
Explanation:
Data Given:
First of all, we need to sort out the data because it is very necessary to solve for this question requirement.
Year 1
Plan A = 1.10 Plan B = 0.10
Year 2
Plan A = 1.10 Plan B = 1.20
Year 3
Plan A = 1.10 Plan B = 0.20
Year 4
Plan A = 1.70 Plan B = 4.50
Year 5
Plan A = 1.70 Plan B = 1.80
Total Number of Years = 5
Now, in order to calculate the total number of dividend per share over the 5 years time period. We need to sum the individual entries of Plans.
So,
For Plan A:
Total number of dividend per share = 1.10 + 1.10 + 1.10 + 1.70 + 1.70 = 6.7
Total number of dividend per share = 6.7
Similarly,
For Plan B:
Total number of dividend per share = 0.10 + 1.20 + 0.20 + 4.50 + 1.80 = 7.8
Total number of dividend per share = 7.8
Answer:
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Explanation:
According to the given data we can conclude that the tax consequences to Comet because of the stock redemption would be Reduction of E& P due to exchange. In order to calculate the amount of Reduction we would have to make the following calculation:
Reduction of E& P due to exchange=Total E&P*Total voting Right Sold
According to the given data we have the following:
Total E&P=Comet has total E&P of $160,000
Total voting Right Sold=shares redeem by comet/shares by Pat+shares by Pam
Total voting Right Sold=50/ (100+100)
Total voting Right Sold=25%
Therefore, Reduction of E& P due to exchange=$160,000*25%
Reduction of E& P due to exchange=$40,000
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
I think that a good phrase to fill in the blank space is "demand curve" or the "law of deman" - the demand curve portrays that if the prize is low, more goods will be bought than if the prize is higher - then people would want to buy less.
Graphically it is seen as a line that is higher on the left(when the x axis is the prize and the y axis is the demand)
Answer:
The 25% discount is better; it saves $12.50
Explanation:
A discount represents a straightforward reduction in price by the stated percentage. A rebate is a refund given after making payments.
For the 25% discount, the customer will make payments as follows.
25% discount deducted from the price of $1250
=$1250-( 25/100 x 1250)
=$1250- (0.25 x 1250)
=$1250 -312.50
=$937.50
For 300 rebate, the customer will pay $1250 and get a refund of $300. The net payment will be $1250 minus $300
=$1250-300
=$950
The 25% discount option is better because the customer pays less by $12.50( $950 - 937.50)
