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.
An information memorandum is very vital for a business because its gives the potential buyers an impression of your business before they meet physically or online with the company.
<h3>What is an
information memorandum?</h3>
Let understand that the I.M. refers to an information memorandum.
An information memorandum refers to sales memorandum which is document produced prior to selling the business or opening of pitch to any prospective buyers.
In conclusion, an information memorandum is very vital for a business because its gives the potential buyers an impression of your business before they meet physically or online with the company.
Read more about information memorandum
<em>brainly.com/question/3352783</em>
Answer:
No tax penalty will apply with respect to the excess distribution
Explanation:
Data provided in the question:
Age of Justin = 66 years
Qualified medical expenses in 2019 = $6,000
Archer MSA distribution taken during the year = $8,000
Now,
No tax penalty applies to with respect to the excess distribution for an individual whose age is over 65 years on the records.
Here,
The age of Justin is 66 years i.e over 65 years.
hence,
No tax penalty will apply with respect to the excess distribution
Answer:
$5,325
Explanation:
Disposable personal income is the income that remain after paying all personal taxes and purchase of final expenditure on goods and services.
Disposable personal Income = Personal Income of the consumers - Personal Taxes paid by the consumers
Disposable personal Income = $7,863 - $2,538
Disposable personal Income = $5,325
So, the disposable personal Income for the individual is $5,325.
Answer:
0.097 OR 9.7%
Explanation:
Cost of Equity using CAPM-
Re = Rf + Beta (Rpm)
where,
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Therefore,
Re = .06 + .9 (.04)
= 9.6%
Unlevered cost of equity:
ReU = Wd × rd + We × re
where,
ReU = Unlevered cost of equity,
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
re = cost of equity = 9.6%
Therefore,
ReU = 0.20 × 8% + .80 × 9.6%
= 9.28%
Levered cost of Equity:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 OR 9.7%
