Answer:
Consider the following calculations. The answer is $135,000.
Explanation:
Book value of inventory of acquiring company before combination = $90,000
Fair value of acquired inventory = $45,000
Amount of total inventory immediately after business combination = $90,000 + $45,000 = $135,000
Hence, answer is $135,000
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign <u>portfolio</u> investment in Argentina.
The following are the policies that are consistent with the goal of increasing productivity and growth in developing countries:
b. Providing tax breaks and patents for firms that pursue research and development in health and sciences.
c. Protecting property rights and enforce contracts.
<u>Explanation</u>:
A foreign portfolio investment is the investment made by a foreigner in the form of purchase in country’s stock and bond markets or deposit of money in bank.
Foreign portfolio investment is important because it gives high risk-adjustment return to the investors. The investors get the opportunity to engage in international diversification of portfolio assets.
The growth of the developing countries can be increased by enforcing contracts and providing patents for the firms that deal with research and development in health and sciences.
Answer:
$32,140
Explanation:
The QBI on $280,000(57.3% of Taxable income) $160,700
Eligible Deduction of 20% on QBI $32,140
Answer:
5,500 units
Explanation:
The computation is shown below:
Given that
Need to sell the units in a month = 4,000 units
Beginning inventory = 1,000 units
Desired ending inventory = 2,500 units
So, by considering the above information, the units to be produced is
= Desired ending inventory + need to sell the units in a month - beginning inventory
= 2,500 units + 4,000 units - 1,000 units
= 5,500 units
Using the Gordon Growth Model (a.k.a. Dividend Discount Model), the intrinsic value of a stock can be calculated, exclusive of current market conditions. In this model, the value of the stock is equated to the present value of the stock's future dividends.
<span>Value of stock (P0) = D1 / (k - g)
</span>where
D1<span> = </span><span>expected annual </span>dividend<span> per share in the following year </span>
<span>k = the investor's discount rate or required </span>rate of return
g = the expected dividend growth rate
<u>From the problem:</u>
The value of stock is $10.80
D1 is $0.40
g is 0.08
k is unknown
Solution:
Rearranging the equation for Gordon Growth Model to solve for k:
k = (D1/P0) + g
Substituting the variables with the given values,
k = (0.40/10.80) + 0.08
k = 0.1170
In percent form, this is
0.1170 * 100% = 11.70%.
Thus, the total rate of return on the stock is 11.70%.