Answer:
$50.74 million
Explanation:
Interest rate per annum = 8%
Number of years = 17
Number of compounding per annum = 1
Interest rate per period (r) = 8%/1 = 8%
Number of period (n) =17 * 1 = 17
Growth rate (g) = 5%
First payment (P) = 4 ($'million)
PV of the new Chip = p/(r-g) * [1 - [(1+g)/(1+r)]^n]
PV of the new Chip = 4/(8%-5%) * [1 - [(1+5%)/(1+8%)]^17]
PV of the new Chip = 4/0.03 * [1 - [1.05/1.08]^17]
PV of the new Chip = 4/0.03 * [1 - 0.972222^17]
PV of the new Chip = 133.333 * (1 - 0.6194589804)
PV of the new Chip = 133.333 * 0.3805410196
PV of the new Chip = 50.7386757663268
PV of the new Chip = $50.74 million
Just place the points where it says to
Answer:
C) $120,000
Explanation:
Since Copper corporation owns 65% of Bronze Corporation, its dividends received deduction (DRD) is 80% of the dividends received.
- stake at another corporation is less than 20%, DRD = 70%
- stake at another corporation is between 20% to 80%, DRD = 80% (Copper's case)
- stake at another corporation is higher than 80%, DRD = 100%
Therefore, if Copper received $150,000 in dividends from Bronze, it can deduct 80% of that amount = 80% x $150,000 = $120,000
Both A and C are almost required to communicate a complex idea. A. pulls the person into actually listening and C makes your idea comprehensible. If I had to go with one or the other, I would emphasize A since it makes certain that the person pays attention. However, putting into consideration that your teacher would likely not want that answer, I would instead go with C.
Answer:
The statement is: False.
Explanation:
Managers must <em>make decisions based on facts and support data</em> -such as the accounting books of the company- since those sources provide <em>objective information</em> on what is happening in regards to the organization. Even if they might be allowed to follow their instinct in taking risky investment decisions, a <em>study </em>must be made before taking a step forward to analyze what the best output could be.
Thus, guessings and personal points of view are not enough for managers to conduct business.
