Answer:
Price =[PVF15%,1*D1]+[PVF15%,2*D2]+[PVF15%,3*D3]+[PVF15%,4*D4]+[PVF15%,4*Terminal value at year4 ]
60 = [.86957* 1.3]+[.75614*1.69]+[.65752*2.197]+[.57175*2.8561]+[.57175*TV]
= 1.1304+ 1.2779+ 1.4446+ 1.6330+ .57175TV
60 = 5.4859+.57175TV
Terminal value = [60-5.4859]/.57175
= 54.5141/.57175
= $ 95.3460
Terminal value=D4(1+g)/(Rs-g)
95.3460 =2.8561(1+g)/(.15-g)
95.3460(.15-g)= 2.8561-2.8561g
14.3019- 95.3460g = 2.8561-2.8561g
95.3460g-2.8561g = 14.3019-2.8561
92.4899 g = 11.4458
g = 11.4458/92.4899
= .1238 or 12.38%
Growth after year4 = 12.38%
**D1 =1(1+.30)=1.3
D2 =1.3(1+.3)=1.69
D3 = 1.69(1+.3)= 2.197
D4= 2.197(1+.3)= 2.8561
Answer:
d. a., b, and c. all result in the same amount of tax.
Explanation:
The question is to determine the form of business
First we need to understand some terms
A C Corporation refers to a standard corporation as far as the IRS is concerned while the S Coproration is a corporation with a special tax status giving it some tax privileges with the IRS. We however, group organisations as either C or S based on the taxation code with the Internal Revenue Service
It should be noted that C corporation, S corporation and partnership all aply the same rate of tax. The only place of advantage or difference is in the area of how the tax is treated and the difference in their liability.
As such, the owner in the question is being taxed based on the 32% bracket and as such it affects all the forms of business structures. Therefore, Partnership. C corporation and S corporation will asll result in the same amount of tax.
Answer:
A)
risk free rate = 8%
market rate = 15%
Xyrong's beta = 1.2
pays 40% of income in dividends
latest EPS = $10
ROE = 18%
k = 8% + (1.2 x 7%) = 16.4%
g = ROE x (1 - 40%) = 10.8%
div1 = [(40% x $10) x (1 + g)] = $4 x 1.108 = $4.432
stock price = $4.432 / (16.4% - 10.8%) = $79.14
B)
div0 = $4
div1 = $4.432
price0 = $103
price1 = $79.14 x (1 + g) = $79.14 x 1.108 = $87.69
holding period return = ($4.43 + $87.69 - $103) / $103] = -0.1056 or -10.56%
They spend money on a variety of things. Some may include: Repairs, buildings, salary, loans, and a whole lot more.
The answer to this question is Social responsibility
Social responsibility marketing refers to the marketing effort that carried out while doing something that added a certain value for society.
Usually being done by giving food stamps, free scholarship, environmental actions, charities, etc.
