Answer:
RE break point = $24500
Explanation:
21,000 net income
30% OF Earnings as dividends
21,000 x 30% = 6,300 dividends
Retained Earnings (assuming no previous beginning value)
21,000 - 6,300 = 14,700
RE break point = 14,700/0.6 = 24500
What does the $24,500 mean?
This mean that the company can raise financing for this ammount without changing their capital structure (60% equity 40% debt)
If the company wants to finance for more, it will need to raise new shares or chance their capital structure, and therefore the WACC will change
Answer:$9,000
Explanation:
The tax credit offered to adoptive parents to encourage adoption is reffered to as ADOPTION TAX CREDIT. The adoption tax credit is a nonrefundable tax credit. This means that people owing taxes are also fit or qualified to apply for the adoption tax credit.
In the United States of America, adoption tax credit qualified expenses include court costs, traveling expenses, lawyer's or Attorney's fee and other expenses for legal adoption of an eligible child.
It can be calculated by subtracting
the max's employer provided for the couple with adoption benefits of $4,000 from the incurred expenses of a total of $13,000 in qualified adoption expenses(from the question).
That is; $13,000-$4,000.
= $9,000.
Hence, the maximum amount of adoption credit they can take this year is $9,000.
Answer:A) one year
Explanation: The unbiased expectations theory, also known as the expectation theory aims to estimate how much the short term interest rates will amount to in future. This is based on long term interest rates. Forward rates are used to predict the value of interests in the future based on the values calculated today. A maturity of 1 year has the lowest interest rate because it is not given enough time to grow. Interest rates tend to grow better over a longer period of time. Therefore in terms of expectation theory the longer the maturity the better the chances of interest rate growth.
It's called dividend. It's their share of the profit
Answer:
$1.3 per share
Explanation:
Data provided in the question:
Number of shares outstanding of TJ = 2,500
Market price = $16.70
Number of shares outstanding of Corner Grocery = 3,000
Price per share of Corner Grocery = $22.50
Cost of acquiring TJ's share = $45,000
Now,
Merger Premium per share = [ Cost of acquiring TJ's share - Market price of TJ's shares ] ÷ Number shares TJ's outstanding
= [ $45,000 - ( $16.70 × 2,500)] ÷ 2,500
= [ $45,000 - $41,750 ] ÷ 2,500
= $3,250 ÷ 2,500
= $1.3 per share
