The total amount of taxes that the company will pay will be calculated as under -
Total taxes paid = (Taxes on income) + (Taxes on dividends)
Total taxes paid = ($ 9.50 X 39%) + ($ 4 X 10%)
Total taxes paid = $ 3.705 + $ 0.4 = $ 4.105 or $ 4.11
to me it would actually have to be college course math because im not really good at trigonometry
Answer:
The correct answer is r=(DIV1/P0)+g
Explanation:
The expected rate of return for a stock is usually the dividend yield added to capital gains yield.
Dividend yield is the percentage of the share's price that the company pays to shareholders as dividends and the formula is the dividends divided by the share price, hence in this scenario it DIV1/PO
On other hand,capital gains yield is the percentage increase of the share price over time. In other words, the share price growth rate,which is a market expectation of the company's performance.The g given in the question depicted this.
Without mincing words,the expected rate of return on the stock is dividends yield(DIV1/P0) plus the capital gains yield(g)
