For the initial purchase, Geraldine already has the gain of
$40,000 - $20,000 = $20,000
Because he succcesfully bought the land below the market value.
After the sale, the total gain would be
$20,000 + ($45,000 - $20,000)
$20,000 + $ 25,000
= $45,000
Answer:
Antonio and Replacement of Golf Clubs
a. He should cash the CD and use the proceeds to finance part of the golf clubs.
b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum. And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.
Explanation:
Option 1: Renew Certificate of Deposit (CD):
Interest earned = $33.48 ($600 * 5.58%)
Taxes = 10.30 ($33.48 * 30.75%)
Net Income = $23.18
Cost of in-store financing = $37.06 ($710 * 5.22%)
Net Loss(overall) = $13.88 ($37.06 - $23.18)
Option 2:
Sale-off of CD = $600
Net financing required = $110 ($710 - $600)
Cost of financing = $5.74 ($110 * 5.22%)
Answer:
The stock price today is $38.76 as shown below
Explanation:
The value of the stock today is the present value of all future dividend payments from the stock.
Present value of first dividend=$14/(1+18.7%)^1
=$11.79443976
Present of second dividend=$38/(1+18.7%)^2
=$26.97007528
The stock price today is the sum of the present values=11.79443976
+26.97007528
=$38.76
Ordinarily, the valuation would have included the price at which the stock could be sold but since the company is wounding up and the only cash flow is payment of liquidating dividends, the price at which stock can be sold is not applicable.
Answer:
Gross private domestic investment less depreciation is net private domestic investment.
Explanation:
Investment is addition to capital stock during a period of time. Depreciation is fall in value of fixed (capital) assets due to usage, wear & tear, obsolescence.
Gross Private Domestic Investment = Total addition to capital stock by private domestic sector, without accounting for depreciation of existing capital stock.
Net Private Domestic Investment = Addition to capital stock by private domestic sector, accounting for depreciation deduction of existing capital stock.
So, Gross Private Domestic Investment - Depreciation = Net Private Domestic Investment.
Answer:
The correct answer is b) Be able to use his or her skills.
Explanation:
Melanie Gollick believes that employees must be able to develop and use their skills to perform work in the hospital. But the use of these skills will depend on the personality of each person and the way they adapt to carry out group work.
Skills refer to a set of skills that each person presents, this ability may be different for each person, for example, a person who works in the health area in a hospital needs to be among their skills, work under pressure, follow instructions, empathy, adaptation, group work, among others.
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