Answer:
B) $2,600
Explanation:
Retained earnings in each is computed as net income minus dividends
In year 2016 retained earnings=$1200-$200=$1000
In year 2017 retained earnings=2016 retained earnings+net income-dividends
2017 retained earnings=$1000-$500+$0=$500
2018 retained earnings=2017 retained earnings+net income-dividends
2018 retained earnings=$500+$2,300-$200
2018 retained earnings=$2,600
Answer:
$144,592
Explanation:
The computation of the after tax salvage value is shown below;
We assume that after 2 years, 52% of the equipment cost would be written off so the remaining basis i.e.
= $319,000 × 48%
= $153,120
The tax loss is
= $153,120 - $140,000
= $13,120
ANd, the tax rate is 35%
So,
= $13,120 × 0.35
= $4,592
Now the after tax salvage value is
= $140,000 + $4,592
= $144,592
The stocks have identical firm-specific risks. Holding firm-specific risk constant, higher beta implies higher total stock volatility. Thus, the value of the put option increases as the beta increases.
Firm-precise risk is the diversifiable danger of an asset. This is the component of threat that is specific to a selected company that does not have an effect on different companies. Efficient diversification can remove this sort of threat.
As soon as different, buyers are nonetheless issued to market-wide systematic risk. Total hazard is unsystematic chance plus systematic risk. Systematic change is attributed to vast marketplace factors and is the investment portfolio threat that isn't always based totally on character investments.
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Answer:
Antonio and Replacement of Golf Clubs
a. He should cash the CD and use the proceeds to finance part of the golf clubs.
b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum. And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.
Explanation:
Option 1: Renew Certificate of Deposit (CD):
Interest earned = $33.48 ($600 * 5.58%)
Taxes = 10.30 ($33.48 * 30.75%)
Net Income = $23.18
Cost of in-store financing = $37.06 ($710 * 5.22%)
Net Loss(overall) = $13.88 ($37.06 - $23.18)
Option 2:
Sale-off of CD = $600
Net financing required = $110 ($710 - $600)
Cost of financing = $5.74 ($110 * 5.22%)
Answer:
there is a direct relationship between price and the quantity supplied.
Explanation:
If price rises, supply will rise because suppliers will see the opportunity to earn more profit.
If price falls, supply will fall due to low opportunity of profit to the suppliers.
