Answer:
100%
Explanation:
Stockholders of Dog's R Us Pet Supply expect a 12% rate of return on their stock. Management has consistently been generating a ROE of 15% over the last 5 years but now believes that ROE will be 12% for the next five years. Given this the firm's optimal dividend payout ratio is now 100%
Answer:
B) The State Disability Insurance (SDI) program benefits received for a period of disability are not taxable as income, but benefits received for time off under the Paid Family Leave program are federally taxable as income.
Explanation:
Disability insurance benefits are not reported for tax purposes with one exception. If a person are receiving unemployment insurance benefits,
become unable to work due to a disability, and begin receiving disability insurance benefits, your disability insurance benefits are considered a substitution for your unemployment insurance benefits, and will then be reported for tax purposes.
If disability insurance benefits are reported, a notice will accompany the first benefit payment sent to you advising that the benefits are being reported to the Internal Revenue Service. The employment development department will provide you with a 1099G tax form in January showing the reported amounts paid and forward a copy to the Internal Revenue Service.
Paid family leave benefits are reported for federal purposes but not state tax purposes.
Paid family leave benefits are not taxable or reported to the California State Franchise Tax Board.
Answer:
D. demand is unitary elastic.
Explanation:
A unitary elastic demand means that the quantity demanded will change proportionally to any change in the price of the product or service. E.g. price decreases by 10%, then quantity demanded will increase by 10%.
The marginal revenue curve represents the additional revenue generated by selling one more unit. As the marginal revenue curve approaches 0, it means that selling one additional unit generates lower revenues.
Answer:
a) Contribution from the special order= $52,640.
b) Stuart should accept the order
Explanation:
The amount of contribution to profit from the special order is the difference between the revenue and the relevant cost of variable cost of the special order.
The relevant cost of the special order is equal the sum of all variable cost only.
Note that the allocated facility overhead is irrelevant to whether to accept or reject the order. This is so because the costs would still be incurred either way.
Relevant variable costs of special order = (880 + 510) × 47 = $65,330
Sales revenue = 2,510 × 47 = $117,970.00
Contribution from the special order =$117,970.00 - $65,330
= $52,640.00
B) Stuart should accept the special order because it would increase its profit by $52,640.
Answer: The correct answer is "personal taxes lower the value of using corporate debt".
Explanation: A major contribution of the Miller model is that it demonstrates, other things held constant, that: <u>personal taxes lower the value of using corporate debt.</u>
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