To solve this problem, we will use a valuation method
named income valuation includes discounting of the profits the stock will
carry to the stockholder in the probable future, and a final value on disposal.
Solution:
1.57 (1.05) / (.14 - .05)
= 18.32. the answer is letter d.
<span> </span>
Answer:
Business interest deduction limitation does not allow net business expenses (business interest expense less business interest income) greater than 30% of the adjustable tax income of the business.
Amounts that fall into this category can be carried for Ward to future tax years for indefinite number of times until it can be applied.
Individuals exempted from business income deduction limitation include real estate and farming businesses. For these businesses they are not automatically exempted, but must elect to be exempted.
Explanation:
The statement that is true among the choices given is option C. The presentvalue of money is greater than its future value. This statement is a fact and is always true. The present worth of a money is greater than its future value due to inflation. This is the principle called the time value of money.
Do you have answer choices?
Answer: Option D
Explanation: In simple words, short run refers to the time frame in which all the factors of production are fixed while in the long run all of them are variable.
This happens due to the fact that in the short run if the company goes for changing the level of inputs than the opportunity that were availing in that time period will be gone by then leading to losses as the total time frame is very less in short run.
On the other hand, firms tends to have greater life in the market and keeps developing themselves with the changing forces of market.
