Answer:
$21,575
Explanation:
Calculation to determine the allowable itemized deductions for the year.
Medical Expense $3,275
[$12,500*($123,00*7.5%)]
State and local income taxes $7,200
Real estate taxes $2,800
Home mortgage interest $5,900
Charitable contribution $2,400
Allowable itemized deductions $21,575
Therefore allowable itemized deductions for the year is $21,575
purchasing suppliers <span> is an example of vertical integration</span>
Answer:
$2,225
Explanation:
For computing the interest expense, we need to do the following calculations which are shown below:
Cash interest = Face value × rate of interest × number of months ÷ total number of months in a year
= $185,000 × 6% × 3 months ÷ 12 months
= $2,775
Now
Premium Amortization is
= Premium amount ÷ number of year × number of months ÷ total number of months in a year
= $11,000 ÷ 5 years × 3 months ÷ 12 months
= $550
The $11,000 is come from
= $196,000 - $185,000
So,
Interest expense is
= Cash Interest - premium amortization
= $2,775 - $550
= $2,225
Place
promotion
price
product
Answer:
Stock Y has overvalued and Stock Z as undervalued
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock Y
= 4.85% + 1.40 × 7.35%
= 4.85% + 10.29%
= 15.14%
For Stock Z
= 4.85% + 0.85 × 7.35%
= 4.85% + 6.2475%
= 11.0975%
The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is applied in the answer
As we see the expected return of both the stock So, Stock Y has overvalued and Stock Z as undervalued
