Answer and Explanation:
The computation is shown below:
a) Growth rate = ROE × retention ratio
= 23% × (1 - .40)
= 13.80%
Value of stock = D1 ÷ (k - g)
= 0.84 × (1 + .1380) ÷ (.16 - .1380)
= $43.45
b) Revised growth rate after year 2 = 16% × .50
= 8%
Value at T2 = D3 ÷ (k - g)
D3 = Earnings × (1 + G1)^2 × (1 + G2) × Payout ratio
= 2.1 × (1+.1380)^2 × (1+.08) × .50
= 1.47
Value at T2 = 1.47 ÷ (.16 - .08)
= $18.38
Value at T0 = Value at T2 ÷ (1 + r)^n
= 18.38 ÷ (1 + .16)^2
= 13.66
Answer:
Option (C) is correct.
Explanation:
Exchange rate refers to the rate at which various countries exchange goods and services in the world market.
For example, the exchange rate between India and United States is as follows:
India's currency is in Rupees and United states' currency is in dollars,
So, the exchange is; $1 = Rs. 69
If the cost of goods for an Indian resident is 20 US dollars then he have to pay:
= 20 × Rs. 69
= Rs. 1,380 in rupees for purchasing the product.
Answer:
A cash flow statement is one of the most important statements along with the income statement and balance sheet in the financial statements.
A statement of cash flow lets the organization know how much precisely on cash that came in and went out of the organization in any given period.
a) To predict future cash flow: this is a function of the cash flow statement as it enables the organization predict from past figures through a cash projection statement which modifies and accounts for anticipated changes in price, volume, interest rates, and other factors and enables the firm know how much cash is likely to flow in and out of the entity in any given future period. This enables the firm know where it stands in terms of liquidity and also helps in budgeting and making long-term plans for the organization.
b) To evaluate management decision: The cash flow statement is a great indication of a firms liquidity which is a vital indicator a the firms ability to remain in business. The cash flow statement enables investors know the exact amount of cash the has come in and out of the organization and not the profit and loss (which can be influenced through profit smoothing). The cash flow statement portrays how well cash has been spent by the company and what the cash was spent on.
c) Predict the ability to make debt payments to lenders and pay dividends to stockholders: the cash flow statement helps the firm acknowledge how much in cash i.e. how liquid the firm is which is basically its ability to make debt payments as well as any other cash payment required such as payment of dividend. The cash flow statement also lets the firm know is it would require borrowing to make any such payment.
Explanation:
I Believe the answer is <span>d. operating. Hope this helped:D XoXo -Marcey<3
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Answer:
Since Will is getting the custody of their two children, he can claim them as dependents and deduct exemptions when he files his taxes.
- child tax credit ($2,000 per child under 18)
- child and dependent tax credit (up to $3,000 per child under 13 and $500 for dependent over 13)
- American opportunity education credit (up to $2,500 per child that studies x 4 years maximum)
Alimony can no longer be deducted from Janine's AGI, nor it should be included in Will's AGI.
Property distributions (cars and house) will not have any effect in their taxes, but if they sell them, their basis will be the value at the time of divorce.
