Which activity best demonstrates the trait of responsibility?
A. demonstrating accountability for your actions
Out of the options, demonstrating accountability for your actions is the activity that best demonstrates the trait of responsibility. Your actions are of no ones responsibility besides you, you must understand the decisions you make. All of the other options are all important but not examples of accountability.
Answer:
As the $3,000 is unrecaptured losses, it will be carried forward to this year and would be set off against the current year's capital gains.
Explanation:
The previous year unrecaptured loss of $3000 will carried forward and would be set off against the capital gains of $12,000. The gain for the year can be calculated as under:
Capital Gain for the year = Gain Before unrecaptured losses - Carried Forward Losses
By putting values, we have:
Capital Gain for the year = $12,000 - $3,000 = $9,000
The resultant $9,000 would be the capital gain for the year.
Answer:
0.75
Explanation:
Marginal Propensity to Consume (MPC) is the change in consumption due to change in income
Change in consumption = $7,250 - $6,500 = $750
Change in income = $11,000 - $10,000 = $1,000
MPC = Change in consumption / Change in income
MPC = 750 / 100
MPC = 0.75
Answer:
2.83%
Explanation:
P0 = $6,700,000
Cost of equity Ke = 8%
So, value of this perpetuity 6 years form now is P6 = P0*(1+Ke)^6
= $6,700,000*(1.08)^6
= $6,700,000*1.58687432294
= $10632057.96
Free cash flow at year 7 (FCF7) = $550,000
So, using constant growth model, g = Ke - FCF7 / P6
g = 0.08 - 550000/10632057.96
g = 0.08 - 0.05173034
g = 0.02826966
g = 2.83%
Thus, the growth rate required for the continuation value (terminal value perpetuity) term is 2.83%.
