Answer:
Option (A) is correct.
Explanation:
Given that,
After-tax IRR on total investment in the property = 9.0%
Before-tax IRR on equity invested = 17%
Before-tax IRR on total investment in the property = 12%
t: Marginal tax rate = 0.40
Break Even Interest rate (neither favorable nor unfavorable):
= After tax IRR on total investment ÷ (1 - Tax rate )
= 9% ÷ (1 - 0.40)
= 9% ÷ 0.60
= 15%
Answer:
The present value of the promised gift will:
be less than $5,000.
Explanation:
The present value of $5,000 to be received in three years' time from today is less than $5,000 received. This is explained by the time value of money concept. If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751). This means that $5,000 received in year 3 is less than $5,000 received today.
I think it is D. Gross profit margin because that is you profit before all of added taxes and every thing else.
Answer:
true
Explanation:
A stock dividend refers to the payout to owners that is provided not in cash but in equity. The stock dividends does have the benefit of paying stakeholders without lowering the cash flow for the business.
A stock split and option split is growing a company's amount of assets. A stock split triggers a fall in the trading price of actual securities, which does not trigger a shift in the business's market capitalisation.
Thus there is no monetary gain benefits from both the methods they are just implemented to adjust price of shares.
I don't think interest rates should matter, try that.