They can offer a high ROI, i believe
Answer: Dividend = $5.83
Explanation:
The price of a Preferred share can be calculated by the formula;
Price = Dividend/ Return
So,
57.56 = Dividend/ 10.13%
Dividend = 57.56 * 10.13%
Dividend = $5.83
Answer:
The company's cost of capital is 8%
Explanation:
With the given information, we can calculate company's cost of equity by Capital Asset Pricing Model (CAPM) = risk free rate of return + beta * (market rate of return – risk free rate of return), in which risk free rate of return is Treasur bill rate which is backed up by government then free risk
Cost of equity (CAPM) = 5% + 1.25*(8%-5%) = 8.75%
Cost of debt = interest rate of debt * (1 – tax rate) = 5%*(1-0) = 5%
Cost of capital = cost of debt * its portion in total debt & equity + cost of equital * its portion in total debt & equity
= 5%*($5 million/ $25 million)+ 8.75% * ($20 million/ $25 million) = 8%
Marginal tax rate in relation to this question is:
The percentage of tax applied to Daniel's income for each tax bracket in which Daniel qualify. Thus, the marginal tax rate is the percentage taken from Daniel's next dollar of taxable income above a predefined income threshold.
Therefore, since Daniel neglected to include a $1,280.00 tax deduction, this will decrease Daniel's taxes by:
$1,280.00 × 0.22 = $281.60
Answer:
Decreases taxes by $281.60
Answer:
Temporary – revenues, expenses, dividends (or withdrawals) account. These account balances do not roll over into the next period after closing. The closing process reduces revenue, expense, and dividends account balances (temporary accounts) to zero so they are ready to receive data for the next accounting period.
Explanation:
