<span>Answer:
For inherited property, the basis is a new basis (i.e., fair market value on the date of the decedent's death unless the executor of the estate elects the alternate valuation date and amount), also known as "stepped-up basis." The $55,000 adjusted basis for Robin's Wal-Mart shares appears to be the fair market value of the stock at the date of her aunt's death.</span>
Answer:
-3.49%
Explanation:
Theoretical price (Ft) = $43
Current spot price (St) = $40.5
Storage cost (u) = 2%
Risk free rate (Rf) = 0.5%
T = 1 year
Let y = Convenience yield
Ft = St e^(Rf + u - y)T
43 = 40.5 e^(0.005 + 0.02 - y)
y = - 3.49%
Hence, convenience yield = -3.49%
Answer:
For the parties to connect, there seems to be no way.
Explanation:
Marketing should be about fulfilling the expectations and wishes of consumers, generating demand, influencing different players, requiring interaction that can be carried out by the other groups and individuals.
<u>For marketing, this same four components needed are:</u>
- Two or maybe more parties to expectations that are unmet.
- An appetite and capacity to be fulfilled on their part.
- A means enough for parties to connect.
- To share everything.
And according to the format prescribed throughout the problem, the business student realized he wanted a tutor for his performance to be enhanced. He discovered that throughout his local neighborhood, a wonderful teacher is readily accessible but uncertain of her identification to express it. He can interact with her towards his tuitions across multiple channels as she contributes to something like the surrounding community.
Answer: Retires $20,000 (000) in long-term
Explanation:
The action that will expose Digby to the most risk of needing a loan is the one that will involve using the most cash that the firm has.
By retiring Long term loans of $20,000 (000), Digby runs the risk of needing an emergency loan in the future because they did not take enough action to finance the company vs the amount in the cash balance that will be spent if they do indeed retire long term loans of that amount.
They have $19,743 (000) and yet only issued 100 (000) shares and $200 (000) of long-term debt. Should they payoff $20,000 (000), their cash flow will take a drastic hit which increases the likelihood of needing an emergency loan.
Solution :
Given :
a). Value of stock earned per share = $5
Percentage of dividends distributed = 16%
Growth of dividend annually = 4%
Calculating the value of the common stock :
= 16% of $5
= 0.16 x 5
= 0.8
k = 0.09
g = 0.04
Therefore, the stock's value is give by,
=$16.64
b). Therefore, the value of the common stock when the growth rate increases is,
= 0.8+20% of 0.8
= 0.96
k = 0.09
g = 0.04
Value of stock
=$19.96
