Answer:
Levered - $280,800,000
Unlevered - $398,400,000
Explanation:
The formula to compute the equity value is shown below:
Equity value = Number of outstanding shares × current worth per share
For Levered, the equity value would be
= 2,600,000 shares × $108
= $280,800,000
For Unlevered, the equity value would be
= 4,800,000 shares × $83
= $398,400,000
We simply multiply the number of outstanding shares with the current worth per share so that the equity value can come.
Answer:
True
Explanation:
Qualified dividends are ordinary dividend that enjoy special tax privilege by being taxed at lower rate. The rate is based on specific tax rate which range from 0% to 20% depending on the income threshold. Though these dividends are taxed based on this specific lower tax rate compare to income tax rate, they are also subjected to net investment income of 3.8% if they earn above certain threshold.
However for dividends to be qualified, it must meet the two requirements given by the Internal Revenue Service (IRS). The requirements are:
*The dividend must have been paid by an entity incorporated in the United States or a qualifying foreign entity.
* The stock must have been held within the minimum holding period specified by the tax law.
So the answer is true because qualified dividends may be subject to a marginal tax rate of 23.8% for taxpayers with income over a certain threshold as explained above.
<span>When a manager leaves his or her job to accept a job at another organization, the organization left behind is experiencing 'attrition'. Attrition means the reduction in employees in a company due to retirement and resignation. It may cause loss of employee talent and increased competition with rival companies.</span>
Answer:
Market rate of return on stock = 11.2152%
Explanation:
Details provided are
Market rate per share = $27.21
Dividend to be paid at year end = $1.80
Expected dividend growth rate = 4.6%
Expected return of market has to be calculated.
Using the dividend growth model we have,
Market return - growth = 
Market return = 6.6152 + 4.6 = 11.2152%
Market rate of return on stock = 11.2152%
