Answer:
$22,592,593
Explanation:
For the computation of maximum initial cost first we need to follow some steps which are shown below:-
Let equity be 1 so debt = 1 × 0.80
= 0.80
weight of debt = 0.80 ÷ 1.8
= 0.44444
weight of equity = 1 ÷ 1.8
= 0.55556
Now
Cost of capital = (After tax cost of debt × Weight of debt) + (Cost of equity × Weight of equity)
= (5.1 × 0.44444) + (12.3 × 0.55556)
= 2.266644 + 6.833388
= 9.10 %
And,
Adjusted cost of capital is
= 9.1 + 1
= 10.1%
Maximum amount willing to pay = CF1 ÷ (Adjusted cost of capital -G)
= $1,830,000 ÷ (0.101 - 0.02)
= $1,830,000 ÷ 0.081
= $22,592,593
Life without math cause math helps science out ,bills and taxes just calculating things overall involves math into it
Answer:
$1,043
Explanation:
Assuming a 12% annual rate, we can convert it to a quarterly rate.
The equivalent quarterly rate is 2.9%.
9 months is the sames as 3 quarters, therefore, we can use the following formula to find the full value of the note at maturity:
12,000 = X (1 + 0.029)^3
12,000 = X(0.92)
12,000/0.92 = X
13,043 = X
Therefore, the interest due at maturity is:
13.043 - 12,000 = 1,043
Answer:
B: $7,300
Explanation:
Cash Balance 1 April $ 14,700
Add: Cash Receipts $ 60,000
Less: Cash Payments <u>$(70,000)</u>
Net Cash Balance $ 4,700 A
Amount to Borrow <u>$ 7,300</u> <u>C</u>
Minimum Cash balance <u>$ 12,000</u> B
B-A = C.
i.e $12,000 - $ 4,700 = $ 7,300
Answer:
Sharrod's deductible loss = stock basis + long term capital gains - cash distribution = $140,000 + $21,000 - $84,000 = $77,000
Sharrod's suspended loss = share of ordinary loss - deductible loss = $84,700 - $77,000 = $7,700
Sharrod's new basis in Kaiwan stock = $0
Explanation:
Sharrod's loss cannot be greater than his basis, that is why only $77,000 can be deducted and $7,700 can be carried forward.