Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Income Taxes Using appropriate headings and subtotals prepare a multiple-step consolidated income statement.
An Income tax is a tax imposed on people or entities in admire of the income or profits earned by way of them. income tax generally is computed because the manufactured from a tax price instances the taxable earnings. Taxation fees can also vary by using the kind or characteristics of the taxpayer and the type of profits.
Consolidated Income statement
Particulars Amount
Net Sales $ 5,864. 6
Less: Expenses
Cost of Products sold = $ 3,6594.4
Gross Profit = $2,205.2
Less: Operating expenses
Selling general, and administrative expenses $ 1,515.3
Other expenses $ 432.7
Operating Income = $ 275
Less: Non-operating expenses
Interest and other non-operating expenses $ 104.7
Income before Taxes = 152.5
Less: Income Tax expense $ 17.9
Income after Taxes = $134.6
Less: Loss on sale of Discontinued Operations
(net of income taxes) $9.4
Net Income $ 125.2
Learn more about Net Income here:-brainly.com/question/15530787
#SPJ4
Answer:
The amount of net pay recorded by Hernandez is $380,650
Explanation:
Gross Pay $500,000
Income Tax $63,000
Social security $31,000
Medicare $7,250
Charitable contribution $5,000
Union Dues $10,000
Unemployement Tax $3,100
Net Pay $380,650
Therefore, The amount of net pay recorded by Hernandez is $380,650
Answer:
Gift tax is not an issue for most people
Explanation:
The person gifting files the gift tax return, if necessary, and pays any tax. If someone gives you more than the annual gift tax exclusion amount ($15,000 in 2020), the giver must file a gift tax return.