Answer:
I'm figuring this out for you!
Explanation:
Answer:
$3,800
Explanation:
The computation of the after-tax benefit is shown below:
= Annual dinner club membership cost - annual dinner club membership cost × her marginal tax rate
= $5,000 - $5,000 × 24%
= $5,000 - $1,200
= $3,800
We simply deduct her tax expense from the annual dinner club membership cost so that the accurate amount can come.
All other information which is given is not relevant. Hence, ignored it
Answer:
15%
Explanation:
The formula and the calculation of the price elasticity of supply are presented below:
Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)
where,
Price elasticity of supply = 2
And, the percentage change in quantity supplied is 30%
So, the percentage change in price is
= 30% ÷ 2
= 15%
Answer:
Explanation:
- The bond has 8% coupon paid semiannually, and those bonds sell at their par value.
- Since the bond sales at par value, Market rate (Yield) = Coupon rate =8%
<u>Second bond:</u>
- Semiannual coupon amount = 1000 x 8%/2 = $40
- Time to maturity = 6 years = 12 semiannual periods
- Semiannual Yield = 8%/2 = 4%
To get price of this bond we will use PV function of excel:
= PV (rate, nper, pmt, fv, type)
= PV (4%, 12, -40, -1000, 0)
= $1053.32
- Price of this bond = $1,053.3
Answer:
a. Firm M probably has a higher dividend payout ratio than Firm N.
Explanation:
The dividend payout ratio is commonly referred to a portion of the net income of the company which is paid to the various shareholders in dividends. Therefore, if we consider the statements made in the question, Firm M has a higher annual net income while the annual net income of Firm N is fluctuating, we can conclude that the dividend payout ratio of Firm M is more than that of Firm N.