Answer:
$8,000
Explanation:
Income distribution deductions apply only to an estate or trust's distributable net income (DNI). In this context, the beneficiaries of an estate or a trust are taxed directly based on the money distributed to them. That means that the estate or trust can deduct distributions when calculating taxes. This is done to avoid double taxation, since the beneficiaries are taxed, then the estate or trust is not.
Answer:
Explanation:
Price is sum of:
1. Present value of expected dividend payments during 1-4 years;
2. Present value of the expected market price at the end of the fourth year based on growth at 5%.
Present value of expected dividend payments during 1-4 years:
PV1 = 3*(1+0.30)*0.8929 = 3.90*0.8929 = $3.482
*0.8929 = 1/1.12
PV2 = 3.90*1.30*0.7972 = 5.07*0.7972 = $4.042
PV3 = 5.07*1.30*0.7118 = 6.591*0.7118 = $4.691
PV4 = 6.591*1.30*0.6355 = 8.5683*0.6355 = $5.445
Total = $17.661
Present value of the expected market price at the end of the fourth year:
Market price of the share at the end = 5th year dividend/(Required rate of return - growth rate)
5th year dividend = $8.5683*(1+growth rate) = $8.5683*(1+0.05) = $9
Market price of the share at the end = $9/(0.12-0.05) = $128.57
Present value of $128.57 is 128.57*0.6355(present value interest factor for year 4) = $81.7
So the price of share is $17.661+$81.7 = $99.37
Dr. Beswick was writing questions for a test, but found herself listening to reggae music coming from an adjoining office, and thinking about her upcoming trip to the Caribbean. She is experiencing <u>attentional deficit</u>.
<u>Explanation</u>:
Attention deficit disorder (ADD) is a kind of neurological disorder that causes difficulty in concentration, lacking attention and facing many problems in completing tasks and social interaction.
Brain injury, genes and exposure to environment toxins are some of the causes of the attention deficit disorder.
In the above scenario, Dr. Beswick was attending a test. She was distracted by the reggae music that was coming from the adjoining office. After listening to the music she started thinking about her upcoming trip to Caribbean. Dr. Beswick was affected by attentional deficit disorder.
Answer:
THEIR FACTOR OF PRODUCTIVITY will increase.
Answer:
Answer:
Dividend (D) = 4% x $100 = $4
Current market price (Po) = $18
Flotation cost (FC) = $1.50
Tax rate (T) = 40% = 0.40
Kp = <u> D
</u>
Po-FC
Kp = <u> $4
</u>
$18-$1.50
Kp = <u>$4
</u>
$16.5
Kp = 0.24 = 24%
Explanation:
Cost of preferred stock equals dividend divided by the difference between current market price and flotation cost. Cost of preferred stock is not tax deductible.
