Answer: A. i = ($1.02/$28) + 0.025
Explanation:
The expected rate of return will be calculated as:
= (Expected dividend/Price today) + growth rate
where,
Expected dividend = $1.02
Price today = $28
Growth rate = 2.5%
Then, slotting the figures into the equation will give:
= (1.02/28) + 2.5%
= (1.02/28) + 0.025
Therefore, the correct option is A
Answer:
The answer is: A) $885,021
Explanation:
Any new project is financially attractive only if its net present value is equal or more than 0.
In this case, the net present value of the investment project (purchasing new equipment) is negative = -$515,967. In order for the project to be attractive, the salvage must have a present value of at least $515,967 or an equivalent future value of at least: $515,967 x 1.08⁷ = $515,967 x 1.7138 = 884277. The closest option is A) $885,021
In the study above, the independent variable would be the consumption of caffeine. The independent variable is the variable that is not affected in any change that is done to the experiment. Most likely, it is the one that is being manipulated and in this experiment it the consumption of caffeine.
Answer:
Tax incentives provided to individual retirement accounts (IRA)
Explanation:
IRAs are a form of private individual retirement plans and they provide tax advantages for retirement savings. Most IRAs provide tax deferrals meaning that they can be deducted from gross income, and they are taxed once only when distributed. While Roth IRAs don't provide tax deferrals but the distributions are tax free.