Answer:
Stock B is most valuable
Explanation:
a. Price of Stock A = $11.20/10% =$11.20/0.1 = $112
b. Price of Stock B = $6.20 / (10%-6%) = $6.20/4% = $6.20/0.04 = $155
C. Price of Stock C = $4.80/1.1 + $4.80*1.22/1.11^2 + $4.80*1.22^2/1.11^3 + $4.80*1.22^3/1.11^4 + $4.80*1.22^4/1.11^5 + ($4.80*1.22^5/10%)/1.1^5
Price of Stock C = $4.36 + $4.75 + $5.22 + $5.74 + $6.31 + $80.55
Price of Stock C = $106.93
Conclusion: Stock B is most valuable
The correct answer is C. Stock
When you buy stocks, you buy pieces of the company. You trade stocks on a stock market.
Answer:
You need to save $4,012.45 each year
Explanation:
Pertiuty in 20 years is $50,000.
So the amount must be in account after 30 years saving to enough for above pertiuty is calculated as below:
= $50000/(1+8%)+ $50000/(1+8%)^2+......+$50000/(1+8%)^20
= $50,000 * Annuity Factor ( 1-20 years) of 8%
=$50000*9.818
= $490,907
To have $490,907 (FV) in account after 30 years (tenor), now you have save an amount each year (PMT) calculated as below:
$490,907 = PMT*(1+8%)^30+....PMT*(1+8%)^2 + PMT*(1+8%)
= PMT * Discount Factor ( 1-30 years) of 8%
$490,907 = PMT * 122.346
-> PMT = $490,907/ 122.346
= $4,012.45
Answer:
b)
i) Subtotal the income shown on lines 1 through 8 of Form 1041 and add the tax-exempt income from line 1 in “Other Information” on the back of the return to arrive at total income.
Total Income = Taxable income + Non-taxable income
= $50000 + $30000
= $80000
ii) Divide the total income by the total taxable income and multiply the results by the total fiduciary fees.
= ($80000/$50000)*8000
=$12800
iii) Take the deductible fees on line 12 and subtract the balance from the total tax-exempt income to arrive at the adjusted tax-exempt income.
= $30000 - ($12800-8000)
= $25200
Subtotal the income shown on lines 1 through 8 of Form 1041 and add the tax-exempt income from line 1 in “Other Information” on the back of the return to arrive at total income.
Divide the total income by the total taxable income and multiply the results by the total fiduciary fees.
Take the deductible fees on line 12 and subtract the balance from the total tax-exempt income to arrive at the adjusted tax-exempt income.
Place that number on Schedule B, line 2.
Explanation:
Answer:
A debit to Bonds Payable for $132,000
Explanation:
This is because The face value or face amount of a bond payable is the amount printed on the bond. We always record Bond Payable as the amount we have to pay back which is the face value or principal amount of the bond.
