Answer:
(C) $19,776.80
Explanation:
The company will pay taxes for the difference between book value and sale value at disposal:
book value after 2 years:
It will be acquisition less accumulated depreciation, which is the sum of the MACRS depreciation rate for this two years
32,600 (1 - 0.20 - 0.32) = 32,600 x 0.48 = 15,648
sales price: 22,000
taxes: (22,000 - 15,648) x .35
6,352 x 0.35 = 2,223.2
after tax cash flow: 22,000 - 2,223.2 = 19,776.8
Answer:
price divisor after split is 4.5
Explanation:
given data
stock prices = $10
stock prices = $20
stock prices = $80
stock prices = $50
stock prices = $40
solution
we find here first price weighted index for all 5 stock that is
price weighted index = 
price weighted index = $40
so
price weighted index before split is $40
so after split last stock became half
so new price divisor
we consider denominator to be x
so
40 = 
x = 
x = 4.5
so price divisor after split is 4.5
The answer would be rises