Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
$40 million
Explanation:
The computation of stock price is shown below:-
For computing the stock price first we need to compute the firm value which is below:-
Firm value = Free cash flow-1 ÷ (Weighted average cost of capital - Growth rate)
= $70.0 million ÷ (10% - 5%)
= $70.0 million ÷ 5%
= $1,400 million
Stock price = (Firm value - Debt) ÷ Number of shares
= ($1,400 million - $200 million) ÷ 30 million
= $1,200 million ÷ 30 million
= $40 million
The correct answer is C. Money is safer in the bank.
Explanation:
The main point or position of Jonas is that savings should be kept in an account due to the costs associated with this. In this context, the only argument that refutes Jonas' position and it is directly related to the main point of Jonas is "Money is safer in the bank" because even if keeping savings in a bank requires to pay fees this guarantees the money will be safe, which does not occur if Jonas keeps his savings at home. Moreover, the safety factor makes the option of the bank better, which refutes Jonas position.
The reason that it is important for Carl to be financially literate is so that he can learn how to invest his own money and manage it properly so that it continues to grow.
Answer:
$39,000
Explanation:
This can be calculated as follows:
Charitable contribution to carry forward = Contribution to church + Contribution to qualified charities + Half of the fair market value of contributed religious artwork
Therefore, we have:
Charitable contribution carry forward = $6,000 + $3,000 + ($60,000 ÷ 2) = $39,000
Therefore, the amount of the charitable contribution carry forward beyond the current year for Gina Hestopolis is $39,000.
