Answer:
CAPM = 12.30%
Dividend Growth Model= 10.32%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)
5% + (0.73 x 10%) = 12.30%
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$35 = $1.6 x (1.055) / (r - 0.055)
r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%
(p)*(i)*(t)
200*32%*1m
200*.32*(1/12)=5.333
the correct answer should be
A) 5.33
Answer:
Deferred tax asset = $2100
Explanation:
Deferred tax asset will be created since deduction allowable for tax purposes in current year is in less amount, the other $6000 deduction for warranty expenses will be allowable in future years. Hence, it has deferred tax asset of [(8000-2000)x35%] $2100.
Answer:
chain of command
Explanation:
A company's chain of command refers to how a company is hierarchically structured, meaning what position has authority or decision power over another position within the company. The highest authority is always held by the board of directors ⇒ then the CEO ⇒ then CFO, COO, (CIO) ⇒ department managers ⇒ middle managers ⇒ lower managers or supervisors ⇒ common employees
In this case, Victor is a common employee at the bottom of the pyramid, and he has two problems:
- he ran out of bicycle repair kits, and
- he doesn't know who should he inform about it.
Answer: $6,000
Explanation:
When expenses such as this interest expense are for 12 months or more, the deduction will need to be evenly spread over the period that they apply to. As the loan was to be repaid in 24 months, the interest payment deductions should be evenly spread over 24 months.
= 12,000/24
= $500
That means that for Year 2, the relevant deduction will be for the 12 months in it;
= 500 * 12
= $6,000