When the required rate of return for such stocks is 20 percent, the current price of the stock is 15.63.
<h3>What is stock?</h3>
Stock in finance refers to all of the shares that make up a corporation's or company's ownership. A single share of stock represents fractional ownership of the corporation based on the total number of shares. A stock is a broad term that refers to any company's ownership certificates.
The price will be calculated thus:
D1 = 1.25
D2 = 1.25 × (11+.40)
D3 = 1.25 × (1+.40) × (1+.20)
D4 = 1.25 × (1+.40) × (1+.20)^2
P4 = 1.25 × (1+.40) × (1+.20)^2 × (1+.08)/(.20 - .08)
Note that d is the dividend.
Current Stock Price = 1.25/(1+.20)^1 + 1.25*(1+.40)/(1+.20)^2 + 1.25*(1+.40)*(1+.20)/(1+.20)^3 + 1.25*(1+.40)*(1+.20)^2/(1+.20)^4 + 1.25*(1+.40)*(1+.20)^2*(1+.08)/(.20 - .08)*(1+.20)^4 = 15.625 or 15.63
Therefore, the current price is 15.63.
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Answer:
b. cost of capacity
Explanation:
A waiting line system can be defined as the number of customers (people) or items (products) that are waiting to receive a service or cleared for the service taken i.e to successfully complete a transaction.
Hence, the parameters of a waiting line system include all of the following;
a. Service time: this is simply the total time it takes to complete a transaction process successfully.
b. Queue discipline: it is uses rules such as first-in first-out.
c. Arrival rates: the time each customer arrives for the service.
Answer:
The question is incomplete since we are not told if the capital gain is a short or long term gain. So I will answer the question in both possible scenarios.
Short term capital gains:
They are taxed as ordinary income, so the net gain = $35,000 - $7,000 = $28,000
Net gain after taxes = $28,000 x (1 - 53.31%) = $13,073.20
Long term capital gains:
They are taxed at a much lower rate that ranges from 0 to 20%. In this case, Christopher is probably taxed at 20%.
Net gain after taxes = $28,000 x (1 - 20%) = $22,400
Explanation:
When a tactics is harmful causing various harms to human health or posing threat it should not be supported.
<h3>What are Harmful tactics?</h3>
They are some actions that are taken a particular time to achieve a particular goal and objective which is short time.
This actions are harmful and the results are usually detrimental.
Therefore, U.S. government should not support U.S. tobacco company interest abroad if they are using harmful tactics.
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