Answer:
Beneficiary recognized gain is $510000.
Explanation:
The amount paid by the decedent for the stock = $280000
The market value of the stock at the time of death = $500000
The selling price or the amount received by the beneficiary by the sell of stock = $510000
Since the recognized gain is calculated by subtracting the amount paid by the person to buy the stock from the amount that he receives from the sale of stock. But in this case, the beneficiary pays zero for the stock but gets all the money after selling.
Beneficiary recognized gain = amount received from the sell – the amount paid by the beneficiary.
= $510000 – 0
= $510000
Answer:
The price 3-years from now will be of $52,50
Explanation:
<u>We solve for g using the Gordon model:</u>
As we don't know the rate of return we solve ofr that fist using CAPM:
CAPM (Capital Assets Price Model)
risk free 0.049
market rate 0.099
premium market = market rate - risk free 0.05
beta(non diversifiable risk) 0.9
<em>Ke 0.09400</em>
We plug that in the gordon equation and solve for g:
2.25 = 0.094 x 46 - g x 46
(2.25 - 4.324) / 46 = -g
-0.0450869565217391 = -g
g = 0.045087
In the gordon model the price of the stock increases at the grow rate:
as P = D/(r-g)
P1 = D(1+g)/r-g)
P1 / P = D(1+g)/(r- g) / D/(r- g) = 1 + g
True! :) hope this helps.
Have a great thanksgiving!! here's a turky!! ;)
Yes. That game used to be the best
Answer:
Chunking
Explanation:
If one wants to increase the capacity of short-term memory, more items can be held through the process of Chunking. This term refers to grouping many pieces of similar information into a larger piece of information. Allowing you to just need to remember the larger units, which would give you access to the smaller components that are related to it. Thus increasing your short-term memory capacity.