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3 years ago

Chip and Charlie own a local pizza shop. The pizza was the talk of the neighborhood. When

Business

1 answer:

Sliva [168]3 years ago

8 0

The form of private corporation that Chips and Charlie chose is the S corporation.

An s corporation is a type of privately held corporation that elects to pass its corporate earnings through its shareholders for the purposes of federal tax. This allows a s-corporation to be taxed only once. The company does not pay federal income tax.

In order for a corporation to be classified as a s corporation, it must meet several requirements set forth by the Internal Revenue Service. Some of these requirements include:

Shareholders must not exceed 100.
The corporation should be incorporated in the United States.
The corporation must have only one type of shares.

To learn more about s corporation, please check: brainly.com/question/16128695?referrer=searchResults

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Caliber Corp. currently pays no dividends because it requires its internally generated funds be used to fund a research intensiv

Andreyy89

Answer:

Do = $2.00

D1= Do(1+g)1 = $2(1+0.2)1 = $2.40

D2= Do(1+g)2 = $2(1+0.2)2 = $2.88

D3= Do(1+g)3 = $2(1+0.2)3 = $3.456

D4= Do(1+g)4 = $2(1+0.2)4 = $4.1472

D5= Do(1+g)5 = $2(1+0.2)5 = $4.97664

PHASE 1

V1 = D1/1+ke + D2/(1+ke)2 + D3/(1+ke)3 +D4/(1+ke)4 + D5/(1+ke)5

V1 = 2.40/(1+0.15) + 2.88/(1+0.15)2 + 3.456/(1+0.15)3 + 4.1472/(1+0.15)4 + 4.97664/(1+0.15)5

V1 = $2.0870 + $2.1777 + $2.2723 + $2.3712 + $2.4742

V1 = $11.3824

PHASE 2

V2 = DN(1+g)/ (Ke-g )(1+k e)n

V2 = $4.97664(1+0.02)/(0.15-0.02)(1+0.02)5

V2 = $5.0762/0.1435

V2 = $35.3742

Po = V1 + V2

Po = $11.3824 + $35.3742

Po = $46.76

Explanation: This is a typical question on valuation of shares with two growth rate regimes. In the first phase, the value of the share would be obtained by capitalizing the dividend for each year by the cost of equity of the company. The dividend for year 1 to year 5 was obtained by subjecting the current dividend paid(Do) to growth rate. The growth rate In the first regime was 20%.

In the second phase, the value of shares would be calculated by taking cognizance of the second growth rate of 2%. In this phase, the last dividend paid in year 5 would be discounted at the appropriate discount rate after it has been adjusted for growth.

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3 years ago

"?________ the owners of the factors of? production, while? ________ what amounts of those factors to hire."

emmasim [6.3K]

Households are the owners of the factors of productions, while firms determine what amounts of those factors to hire.

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3 years ago

Describe your personal definition of leadership.

Inessa [10]

Leadership is showing the way to people and making people better.

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3 years ago

Make a simple poem regarding the learning’s that you acquired in managing the finances. (4 Stanzas only with rhyme and with no m

dangina [55]

Answer:

My net worth is my assets less my liabilities

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2 years ago

____________refers to information being available to users early enough to allow them to use it in the decision process.

S_A_V [24]

Answer:

The correct word for the blank space is: Timeliness.

Explanation:

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3 years ago