Answer: According to Ian Redpath and Greg Urban, the threshold amount required for conclusively stating whether a substantial basis adjustment is mandatory is $250,000. The amount required is $250,000 in order for one to know whether they are in need for a substantial basis reduction or maybe not. It's required when the amount indeed exceeds $250,000.
Answer:
The answer is: E) It would not necessarily be considered high elsewhere
Explanation:
Usually the inflation rate in the US and Europe is around 1-3%. In the early 1980's the US inflation rate was above 10% so it was considered huge. But if you consider it against inflation rates in other countries, like Argentina for example, which currently has an annual inflation rate of over 60% then it wasn't that big. During the 1980's many countries suffered from hyperinflation, with monthly inflation rates of over 50%.
So the high inflation rate in the US and Europe wasn't necessarily high for other countries.
Answer:
The demand for 10 a.m. class is higher than the demand for the 2 p.m. class.
Explanation:
The supply of seats for the psychology class at 10 a.m is the same as the class at 2 a.m. But there is a surplus of seats at 2 a.m class and shortage of seats at 2 p.m class.
Other things being constant this implies that more students are attending the 10 a.m class than the 2 p.m. class. This shows that the demand for the 10 a.m class is comparatively higher than the demand for the 2 p.m. class.
This causes a surplus of seats at 2 p.m and shortage of seats at 10 a.m.
On a graph that shows supply and demand curves, <u>equilibrium is the single point where the two curves meet</u> (aka are <em>equal</em>).
Answer:
g = 16%
dividends yield:
Year 1 4.60%
Year 3: 4.78%
<u>expected rate of return: </u>
year 1 20.6%
year 3 20.78%
<u></u>
Explanation:
<u>grow rate:</u>
D1 /D0 = g
1.16/1.00 - 1 = 0.16
1.3456/1.16 - 1 = 0.16
the grow rate is 16%
<u>dividend yield:</u>
dividends/stock price = dividend yield
1/21.7 = 0,0460 = 4.60%
1.3456/28.15 = 0,04780 = 4.78%
<u>expected rate of return: </u>
dividend yield + grow rate
4.60% + 16% = 20.6%
4.78% + 16% = 20.78%