Answer:
A share of this stock be worth$ 21.88 four years from now
Explanation:
Amount of annual dividend that will be paid the next year = $ 2.05
increase in dividend by 3.5% = = increase by a factor of 1.035
Since there is a 14% return, overall increase in dividend = = 9.857
<em>Note:</em>
<em>0.035 was obtained from </em><em>= 0.035 (dividend increase)</em>
<em>0.14 was obtained from </em><em> = 0.14 (percentage return required)</em>
over the next 20 years his new value of dividend will be
New value of dividend = $2.05 + 9.857 = 11.907
Converting to a percentage,
= 1.1907
Net dividend increase =
Dividend returns minus increase in dividend for 20 years is given as
14% - 3.5% = 10.5%
From the above, the
Worth of a share of his stock 4 years from now can be computed by
(dividend X Percentage increase in 20 years)/ net percent dividend increase + (increase in 4 years/ net dividend increase) X 100
+ × 100 =$21.88
∴ A share of this stock be worth$ 21.88 four years from now
the correct answer is A.bonita will pay less interest with the adjusted balance method and average daily balance method, but not with the previous balance method. i just took the test
Answer:
Check the explanation
Explanation:
Liquidating distributions in the problem are made in accordance to the preferred stock Since the activities may not meet the Section 332 requirements, the Section 332 rules will not apply to the case cited in the problem This means, Parent has to recognize a capital loss of 8.50,000 on the distribution The capital loss can only be used to offset capital gains.
Under the Section 165(03) rules for affiliated corporation's worthlessness securities, Parent can recognize an ordinary loss of 8.500,000 on the common stock The ordinary loss can be sued to offset ordinary income.
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
B) $ 1.449.635,50
Explanation:
YEAR 1: $150.000 PV= FV/(1+i)^n = $150.000/ (1+0,08)^1 = $138.888,89
YEAR 2: $150.000 PV= FV/(1+i)^n = $150.000/ (1+0,08)^2 = $128.600,82
YEAR 3: $150.000 PV= FV/(1+i)^n = $150.000/ (1+0,08)^3 = $119.074,84
YEAR 4: $150.000 PV= FV/(1+i)^n = $150.000/ (1+0,08)^4 = $110.254, 48
YEAR 5: $150.000+ $1.250.000= $1.400.000 PV= FV/(1+i)^n
PV= $1.400.000/ (1+0,08)^5 = $ 952.816, 48
TOTAL = $1.449.635,50