Answer:
The remaining part of the question is:
The interest payments are reinvested at the:
a.Coupon rate.
b.Current yield.
c.Yield to maturity at the time of the investment.
d.Prevailing yield to maturity at the time interest payments are received.
e.The average yield to maturity throughout the investment period
<u>Correct Answer:</u>
b.<u>Current yield. </u>
<u></u>
Explanation:
Answer:
Current stock price = $24.23
Explanation:
Stock price under Discounted Model:
P0 = D1 \div(Ke - g)
P0 = Current Market price of the share
g = Growth rate = 5.0%
Ke = Cost of equity = 11.5% p.a
D1 = Expected dividend = $1.50 (1 + 0.05)= $1.575
P0 = $1.575 / (11.50% - 5.0%)
Current stock price = $24.23
Based on the gambling winnings, the unemployment compensation, and the net royalties, George's total income for the current tax year is $60,000.
<h3>What is the total income to George for the year?</h3>
There are some income that will not be accounted for as George's income for the year as they are not taxable. These include the life insurance policy payout, the gambling losses and the contribution to the IRA.
George's income for the year is therefore:
= Gambling winnings + Unemployment compensation + Royalties
= 45,000 + 5,000 + 10,000
= $60,000
In conclusion, George's total income is $60,000.
Find out more on unemployment compensation at brainly.com/question/17049367.
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Answer:
C. Purchase of treasury stock
Explanation:
The purchase of treasury stock results in a change in the stockholder's equity and as such is recognized as a financing activity in the statement of cash flows.
For the other options, amortization expense is a non-cash item and is adjusted for in the net cash flows from operating activities.
Collection of notes receivable is a change in current assets hence it is reported under net cash flows from operating activities.
Sale of equipment is reported under net cash flows from investing activities.
Hence the right option is C. Purchase of treasury stock.