Answer: 1) organizes assets and liabilities into important subgroups 2) is more useful to decision makers 3) lists current assets in order of how quickly they can be converted to cash
Explanation: see image
I do believe that gifts to a spouse are exempt from any gift tax. So $0 is taxable.
Answer:beta
Explanation:Beta is a measure of a stock's volatility in relation to the overall market.
Beta is a component of the capital asset pricing model (CAPM), which is used to calculate the cost of equity funding. The CAPM formula uses the total average market return and the beta value of the stock to determine the rate of return that shareholders might reasonably expect based on perceived investment risk. In this way, beta can impact a stock's expected rate of return and share valuation.
Beta is calculated using regression analysis. Numerically, it represents the tendency for a security's returns to respond to swings in the market. The formula for calculating beta is the covariance of the return of an asset with the return of the benchmark divided by the variance of the return of the benchmark over a certain period.
Answer: I think the train fare.
Explanation:
Not sure if answer is correct. Sorry if I am wrong.
Answer:
The maximum that one should be willing to pay for this stock today is $21.38
Explanation:
The constant dividend paying company is the one whose dividend growth remains zero or unchanged. The zero growth model of the DDM is used to calculate the price or value of stock today of such a stock. This kind of stock is just like a perpetuity as it pays a fixed amount after fixed intervals of time forever.
The formula for price of such a stock or zero growth model is:
Price = Dividend / r
Price = 3.1 / 0.145
Price = $21.379 rounded off to $21.38
