Answer:
$2.90 approx
Explanation:
The computation of firm’s cash dividend be in seven years
First we need to find out the
Growth Rate = (Last Dividend ÷ Dividend 4 years ago)^(1 ÷ 4) - 1
= ($2.36 ÷ $1.73)^(1 ÷ 4) - 1
= $1.36^0.35 - 1
= 1.113624092 - 1
= 0.113624092
= 11.36%
Now we calculate for 5 years
Dividend in 5 years = $2.36 × 1.113624092
= $2.628
and Dividend in 7 Years = Dividend in 5 years × (1 + 5%)^2
= $2.628 × 1.05^2
= $2.628 × 1.1025
= $2.90 approx
I guess the correct answer is $686, 800
XYZ corporation has income before taxes of $2 million and received $100,000 in preferred dividends from a company in which it owns 25% of the outstanding shares. If XYZ corporation is in the 34% tax bracket, it will pay taxes of $686, 800.
Since XYZ corporation owns 25% of the outstanding shares, it is exempt from paying taxes on 80% of dividends received from the stock. The corporation would need to pay taxes on only $20,000 of the dividends received (20% of the $100,000 in preferred dividends) plus the $2,000,000 of income the corporation earned. Since the corporation is in the 34% tax bracket, the tax would be $686,800. (34% of $2,020,000 = $686,800.)
Answer:
If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at an efficient point.
Explanation:
As when an economy is at an efficient point then, the economy will tend to indulge in producing the commodity in which it has an absolute advantage and thus, will later on trade in order to be better off.
In the given instance, the economy is efficient and since the nature of both the goods guns and butter are completely different, thus the economy will produce more of any single product to gain competitive advantage in that product.
Thus, efficient economy also cannot produce both the goods.
Answer:
D. Neither country could gain from trade with each other because neither one has a comparative advantage
Explanation:
Opportunity cost refers to the units sacrificed from production of one good to produce an extra unit of another good.
In the given case, the number of workers are same.
The opportunity cost for producing corn instead of oats by Cornland would be : 10/40 units of oats = 0.4 units of oats
Similarly, the opportunity cost for producing corn by Oatland = 5/ 20 = 0.4 units of oats
Similarly, the opportunity cost for producing oats by Cornland = 4 units of corn
Opportunity cost for producing oats by Oatland = 4 units of corn.
As can be seen, none of the two i.e Cornland or Oatland enjoys a comparative advantage over other since for both, the opportunity cost is the same.
Hence, neither country would gain out of trade.
Closed I think.
I haven’t done this in a while
