Answer:
Investment/savings Income sources
Trading in Bonds : Capital gains and interest income
Buying and selling properties : Capital gains only
Trading in company stocks : Capital gains and Dividends
Opening a CD account : Interest Income only
Explanation:
Investment/savings Income sources
Trading in Bonds : Capital gains and interest income
Buying and selling properties : Capital gains only
Trading in company stocks : Capital gains and Dividends
Opening a CD account : Interest Income only
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<em>Capital gains is a source of income made from the sale of assets such as Bonds or other forms of security such as stocks and real estate , while Interest income is a type of income earned while trading in Bonds and opening and maintaining a CD account .</em>
Answer:
$57,100
Explanation:
Aardvak enterprises has agreed to be exchanged by Lawson's products
The exchange is $23,000 worth of Lawson's product stock
Lawson's has an 1,300 shares as outstanding at a price of $15 per share
Aardvak has 1,900 shares outstanding with a market value of $18 per share
The incremental value of the acquisition is $3,400
Therefore, the value of Lawson's product after the merger can be calculated as follows
= (1,300 × $15) + (1,900×$18 )+ $3,400
= $19,500+$34,200+$3,400
= $57,100
Hence the value of Lawson's product after the merger is $57,100
As per the dividend distribution model, the cost of equity = D1/P0 + g
where D1 = next year's dividend = 1.10
P0 = Current stock price = 21.80
g =growth rate = 4.5% =0.045
Cost of equity = 1.10/21.80 + 0.045 = 0.095458 = 9.5458% = 9.55%(Rounded)
Answer:
$4,238.05
Explanation:
The computation of the present value is shown below:
Years Cash flows Discount factor @7% Present value
1 $850.00 0.9345794393 $794.39
2 $1,190.00 0.8734387283 $1,039.39
3 $1,450.00 0.8162978769 $1,183.63
4 $1,600.00 0.762895212 $1,220.63
Total present value $4,238.05
Answer:
see below
Explanation:
Social security and medicare taxes form the Federal Insurance Contributions Act (FICA) tax. These taxes are deducted from both the employer and employee per paycheck.
Social security tax forms the bulk of the FICA tax. The tax revenue collected as social security tax funds the United States government Social Security Trusts. The trusts are programs managed by the Social Security administration and include
- Retirement benefits
- Survivor benefits
- Disability benefits
Medicare tax revenue funds Federal government medicare programs. This program caters to older American health care costs. The government's general revenue also finances health care. Medicare or health services in the USA are not solely dependent on medicare tax.
