Answer:
$3,750
Explanation:
Capital Gain tax is paid on the sale property value. According to tax rule if you sale your residence building the first $250,000 is exempt from the tax and the amount above this value will be taxed using rate of 15%.
Total Amount of Gain = $275,000
Amount Exempted = $250,000
Taxable value = $275,000 - $250,000 = $25,000
Tax value = $25,000 x 15%= $3,750
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
Answer:
The necessary investement today is $783.53
Explanation:
Giving the following information:
An investor wishes to have $1,000 available in five years. The interest rate is 5%.
We need to use the following formula:
PV= FV/(1+i)^n
FV= 1000
i=0.05
n=5
PV= 1,000/(1.05)^5= $783.53
Answer:
The bank is wiling to pay "approximately $820,000,000".
Explanation:
As we know,
Earnings from selling of $22/start sharing $40 million shareholdings:
⇒ 
⇒ $
Fee of banker at 6.82% will be:
⇒ 
⇒ $
Idle investment company willingness to spend on time will be:
⇒ 
⇒ $
So that the bank is willing to pay "approximately $820,000,000".
Answer:
B. the marginal revenue product of major league baseball players is high relative to college professors.
Explanation:
For becoming a college professor involves more amount of efforts and dedication than the baseball players.
Also under the baseball matches there are numerous sponsors as looking for advertisement and promotions, as huge public is interested in such matches.
Therefore as large funds are invested and that the players earn accordingly more, as tickets are also charged.
The marginal revenue from baseball is therefore more, as the cost is less as compare to the cost in becoming professor.