1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kotykmax [81]
3 years ago
9

Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar

e $100, real net returns to land are assumedto increase by 4% each year, inflation is 3%, the marginal tax rate is 30%, and thepretax risk adjusted discount rate is 10%.Group of answer choices
Business
1 answer:
Tatiana [17]3 years ago
8 0

Answer:

PV(after-tax net return in 7th year) = 70.55 (Approx)

Explanation:

Given:

Number of year = 7

Pre-tax net returns (Fn) = $100

Growth rate = 4% = 0.04

Inflation = 3% = 0.03

Marginal tax rate = 30% = 0.3

Discount rate = 10% = 0.1

Computation:

Fn = Fo(1+g)ⁿ = 100(1.04)⁷

Fn = 131.6

Nominal net returns = 131.6(1.03)⁷

Nominal net returns = 161.85

After tax return = 161.85  (1 - 0.3)

After tax return = 113.30

After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%

PV(after-tax net return in 7th year) = 113.30 (1+0.07)⁻⁷

PV(after-tax net return in 7th year) = 70.55 (Approx)

You might be interested in
In a certain town, 60% of the households have broadband internet access, 30% have at least one high-definition television, and 2
DIA [1.3K]

There will be 30% of houses without fibre optic internet connectivity or high-definition television.

Groups of components with definite definitions are called sets. A curly bracket serves as a symbol for the number of objects in a finite set.

To choose a subset from a set and draw a conclusion using statistical analysis, use random sampling.

In one town, 20% of homes have both fiber-optic internet connectivity and at least one high-definition television, whereas 40% of homes have one or the other.

The percentage of residences without fibre optic internet connectivity or high-definition television is as follows:

P = 100% - [60% + 30% - 20%]

P = 100% - (90% - 20%)

P = 100% - 70%

P = 30%

30% of houses will not have fibre optic internet connectivity or high-definition television.

learn more about  high-definition television here

brainly.com/question/28535624

#SPJ4

7 0
1 year ago
In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that
Fudgin [204]

This process of evaluating the companies for acquisition is best known as A. Due diligence.

<h3>What is corporate acquisition?</h3>

Corporate acquisition refers to the corporate act of taking over another company for business expansion and other strategic intents.

To make a successful acquisition, the acquiring company carries out due diligence by evaluating potential acquisition candidates.

<h3>Question Completion with Answer Options:</h3>

A. Due diligence

B. Market intelligence

C. Consultation

D. Market evaluation

Thus, this process of evaluating the companies for acquisition is best known as A. Due diligence.

Learn more about due diligence in acquisition at brainly.com/question/13806280

#SPJ12

5 0
2 years ago
Select the accounting principle, assumption, or related item that best completes the sentence. Ex: Material. Full disclosure. Fa
KIM [24]

Answer:

1. Relevance and faithful 2.confirmatory value 3.Comparability 4. fair value 5. material 6. consistency 7. neutrality 8.Full disclosure 9. periodicity 10. Revenue recognition

4 0
3 years ago
The physician has asked the medical assistant to provide patient education for hypertension. What is the best way to provide thi
Stolb23 [73]
C, in a private exam room. Telling someone in the waiting room is a clear violation of HIPAA laws, and you're skirting the line at the discharge window. There are too many inherent risks with email: the account on file may be an account multiple people can access; you might have the wrong address, even if due to a typo; and so on. Discussing care in an exam room is the best way to maintain HIPAA compliancy. 
8 0
3 years ago
Negative feedback received during the final evaluation of the decision indicates:______A. the decision was a bad one. B. impleme
kumpel [21]

Answer:

E) Any of the above may be possible.

Explanation:

Negative feedback means any of following reasons are possible:

1. The decision was a bad one (most probably)

2. More information and new suggestions should be incorporated since the more input better will be the output

3. More time, resources, effort and thought are needed

4. Manager may have to re-start the decision process from beginning

8 0
3 years ago
Read 2 more answers
Other questions:
  • Layla is a salesperson at mandrin corp. and is preparing to make a sales call. she should use a check-back after she:
    11·1 answer
  • What advice you would give someone embarking on a job search about being assertive, and explain the difference between being agg
    15·1 answer
  • Here are some facts about the relationship between three goods: Firm X produces a good that it sells to Firm Y. Firm Y produces
    5·1 answer
  • Which of the following tasks are NOT typically outsourced? Group of answer choices core business production noncore business acc
    10·1 answer
  • Mike went to the ATM to take out $20 for the movies. Later in the day, he transferred $36 to his checking account
    12·2 answers
  • A customer has been receiving confirmations and statements by mail and asks the registered representative if these can be sent b
    10·1 answer
  • In two to three sentences, explain online banking and its purpose.
    7·2 answers
  • Why do we say that credit is basically a loan?
    13·1 answer
  • Managers can limit conflicts brought about by ______ by treating employees equally, being open about why some employees are rewa
    10·1 answer
  • Before the meeting ended, Sofia shared her new product idea; consequently, her ideas were included in the meeting minutes.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!