Answer:
Required rate of return is 6.97%
Explanation:
The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:
Stock price =dividend/required rate of return
stock price is $80.40
required rate of return is unknown
the dividend on the preferred stock is $5.60
required rate of return=dividend/stock price
required rate of return =$5.60/$80.40=6.97%
The required rate of return based on the stock price and dividend information provided is 6.97%
Answer:
The best gift I ever received is none other than my parents, given to me by God on my birthday. Nowadays, not every child is fortunate enough to have both parents to nurture them. As for me, I am lucky to be raised by two loving parents. They provide shelter and care so that we can live comfortably.
Explanation:
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Answer:
$143,750
Explanation:
We have to first calculate the present value of the bargain purchase option:
PV = $200,000 / (1 + 6%)⁵ = $149,451.63
net lease amount = $790,000 - $149,452 = $640,548
PVIF Annuity due, 6%, 5 payments = 4.546
Annual payment = $640,548 / 4.456 = $143,750
<span>Family A: marginal rate 20%, average rate 10%</span><span>
Family B: marginal rate 40%, average rate 23% </span><span>
The marginal tax rate is the rate paid on the last dollar of income; this would be whatever tax bracket the family is in. The average price is the total tax divided by the total revenue. </span><span>
Family A: </span><span>
</span><span>
total income $40,000: this includes $10,000 at 0%, $20,000 at 10% (tax of $2,000), and $10,000 at 20% (tax of $2,000). The last rate paid is 20% so that is the marginal rate; the total tax paid is $4,000, divide that by $40,000 total income, that is the average rate. </span><span>
Family B: </span><span>
</span><span>
total income $100,000: this includes $10,000 at 0%, $20,000 at 10% (tax of $2,000), $20,000 at 20% (tax of $4,000), $30,000 at 30% (tax of $9,000), and $20,000 at 40% (tax of $8,000). The last rate paid is 40% so that is the marginal rate; the total tax paid is $23,000, divide that by $100,000 total income, that is the average rate.</span>
