That would be the market performance of an investment.
Answer:
The amount of dividend received by common stockholders in 2017 = $7500
Explanation:
The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.
The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500
In 2016 dividend of 22500 is declared and paid.
Out of this 22500, 12500 relates to prefernece dividend for 2015.
The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.
In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.
The amount of dividend received by common stockholders in 2017 = 22500 - 15000 = $7500
a.
WACC is calculated as –
WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)
WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))
WACC = 10.46%
b. After tax cost of debt is calculated as –
After tax cost of debt = (1- tax rate) X cost of debt pre-tax
After tax cost of debt = ((1- 40%)*8.1%))
After tax cost of debt = 4.86%
<span>The options attached to the question above are given below:</span>
<span>A. </span>The culture of the host country is likely to be
much more individualistic than U.S. culture is.
B. The manager will have greater difficulty finding
educated workers in the host country than in the United States.
C. The manager may not be familiar with the host country’s
language.
D. The host country will likely tax a larger
percentage of the manager’s income than the United States would.
E. The host country will likely have few
protections for its workers.
ANSWER
The correct option is D.
A socialist system is a type of economic system in which the factors of production are jointly owned by all the citizens and production affair is regulated by the government. Such a country does not encourage individuals to operate personal business. Thus, such a country will lay high tax on the income of the manager in order to discourage him from selling his machine in their country.
Answer:
The summary as per the given query is summarized in the explanation section below..
Explanation:
The given values are:
The nominal rate of return,
= 7%
i.e.,
= 0.07
Inflation,
= 4%
i.e.,
= 0.04
- Lengthy-term inflation would lessen the return on investment that lowers the net return as long-term investments are made.
- It can also aim to obtain a higher return that will comfortably exceed the rate of inflation and therefore is beneficial towards diminishing the average return.
Now,
The rate of return will be:
= 
On substituting the values, we get
= 
= 
= 
= 
Therefore it isn't able to measure the average return rate because the quantity of years for its expenditure.
