Answer:
No, a reversal of a ruling shall not be given a retroactive application if it will be prejudicial to the taxpayer.
Explanation:
Based on the information provided it can be said that No, a reversal of a ruling shall not be given a retroactive application if it will be prejudicial to the taxpayer. Meaning that the BIR can not assess ABC Printers for back taxes because ABC Printers was following the rulings made by BIR at that time correctly, the change in ruling applies to taxes only after the change has been made and not before. Therefore as long as ABC Printers begins paying taxes now, then the BIR has no standing.
Answer:
the numbers are missing, so I looked for a similar question:
- investment today = $3,000
- receive $10,250 in 5 years
a) I will use the future value formula to determine the internal rate of return:
future value = present value x (1 + r)ⁿ
- future value = 10,250
- present value = 3,000
- n = 5
10,250 = 3,000 x (1 + r)⁵
(1 + r)⁵ = 10,250 / 3,000 = 3.4166667
⁵√(1 + r)⁵ = ⁵√3.4166667
1 + r = 1.27855826
r = 0.27855826 = 27.86%
b) assuming a $3,000, 27.86%, 5 year annuity, the annual payment will be:
annual payment = principal / FV annuity factor, 27.86%, 5 periods
- principal = $10,250
- PV annuity factor, 27.86%, 5 periods = 8.67633
annual payment = $10,250 / 8.67633 = $1,181.38
Answer: $81,060 in August and $80,850 in September
Explanation: Please find attached a table.
August 86,800 17,360 38,500 25,200 81,060
September 91,000 18,200 43,400 19,250 80,850
Answer:
The price 3-years from now will be of $52,50
Explanation:
<u>We solve for g using the Gordon model:</u>
As we don't know the rate of return we solve ofr that fist using CAPM:
CAPM (Capital Assets Price Model)
risk free 0.049
market rate 0.099
premium market = market rate - risk free 0.05
beta(non diversifiable risk) 0.9
<em>Ke 0.09400</em>
We plug that in the gordon equation and solve for g:
2.25 = 0.094 x 46 - g x 46
(2.25 - 4.324) / 46 = -g
-0.0450869565217391 = -g
g = 0.045087
In the gordon model the price of the stock increases at the grow rate:
as P = D/(r-g)
P1 = D(1+g)/r-g)
P1 / P = D(1+g)/(r- g) / D/(r- g) = 1 + g
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The cost of producing 40,000 parts is $120,000, which includes fixed costs of $60,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3.00 per unit and avoid 30% of the fixed costs.
Make in-house= 120,000
Buy= 3*40,000 + (60,000*0.7)= 162,000
Total difference= 42,000