Answer:
The maximum that should be paid for the stock today is $30.23.
Explanation:
The total return on a stock is made up of dividend received on the stock plus the capital gain received from selling the stock. The holding period is one year that means a 10% return on the amount invested in required for one year. We need to calculate the present value of the total of selling price plus the dividend to calculate the price of the stock today. As 10% return is required, the discount rate is also 10%.
PV = (1.25 + 32) / 1.1
PV = 30.227 rounded off to 30.23
Answer:
Please refer to the below for the appropriate journal entry
Explanation:
Accounts receivable Dr $726,700
($676,000 + $50,700)
Sales revenue account Cr $676,000
Sale taxes payable account Cr $50,700
{(6% + 1.5%) × $676,000
Answer:
total weight of debt = 0.343 or 34.3%
Explanation:
stock's market value = 17,500 x $69 = $1,207,500
bond₁'s market value = $250,000 x 101.5% = $256,750
bond₂'s market value = $350,000 x 106.5% = $372,750
total market value of the firm = $1,837,000
weighted capital structure:
market value weight
stocks $1,207,500 0.657
bond₁ $256,750 0.140
bond₂ $372,750 0.203
total $1,837,000 1
total weight of debt = 0.343 or 34.3%
Answer:
Explanation:
1. What is the partial effect of expendA on voteA?
ΔvoteAΔexpendA=β2+β4expendB→0.0382809+−6.63e−6expendB
2. Is the expected sign for b4 obvious?
Yes because the expendB alone is a negative and expendA is a positive leaving B4 to be a negative number .
Cyclical deficit is the downfall of the business cycle, this usually occurs when the economy is beneath potential income. The formula for this is, CD= tax rate x ( potential deficit - actual deficit). Therefore, the cyclical deficit is $200. I hope this helps.
