A would be the correct answer
Answer:
The answer is: D
Explanation:
Program trading is the use of computer programs or algorithms to trade a portfolio of stocks at a high frequency and in large numbers. These algorithms, essentially 'machine traders', are created to make trades on behalf of humans and are anticipated to have more precision and speed than human traders. However, these trades are created, monitored and analysed by human traders. The New York Stock Exchange classifies the coordinated trading of a group of 15 or more stocks with a combined market value of $1, 000, 000 as program trading.
Answer:
r = 0.10666841 or 10.666841% rounded off to 10.67%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0* (1+g) / (r - g)
Where,
- D0 * (1+g) is dividend expected for the next period
- r is the required rate of return
By plugging in the available values for P0, D0 and g, we can calculate the value of r to be,
76.48 = 4.32 * (1+0.0475)/ (r - 0.0475)
76.48 * (r - 0.0475) = 4.5252
76.48r - 3.6328 = 4.5252
76.48r = 4.5252 + 3.6328
r = 8.158 / 76.48
r = 0.10666841 or 10.666841% rounded off to 10.67%
3.6 / 40 = g
g = 0.09 or 9%
Answer:
b. $233,100 tax expense
Explanation:
The computation of the current income tax expense or benefit is shown below:
But before that first we have to need to find out the taxable income i.e
= Pretak book income + increase in net reserve warranties + exceeded amount - dividend deduction
= $1,000,000 + $25,000 + $100,000 - $15,000
= $1,110,000
Now to find out the current income tax expense since the tax rate is not given so we assume the marginal tax rate i.e 21%
So,
= $1,110,000 ×21%
= $233,100
By multiplying the taxable income with the tax rate we can get the income tax expense
