I believe the answer is B
Answer:
If Tom is single, he can claim THE $250,000 CAPITAL GAINS EXEMPTION.
Explanation:
Capital gain taxes are taxes on any profit you make from the sale of something, such as a house. These taxes apply unless you upgraded to a home with a more expensive purchase price.
With the passage of the taxpayer relief act, individuals can exclude up to $250,000 of capital gains from taxation and married couples can exclude up to $500,000.
To qualify for the home sale capital gains tax exemption, one must pass the use test (looking at whether one used/lived in one's home). One must have owned and lived in the residence for at least two out of the last five years before the sale.
Therefore, since Tom is single and has lived in his home for the past four years and wants to sell, he qualifies for the exemption and can claim THE $250,000 CAPITAL GAINS EXEMPTION.
Answer:
20.1%
Explanation:
In capital asset prcing model (CAPM), cost of equity (or cost of retained earnings in this context) is calculated as below:
<em>Cost of equity = risk-free rate of return + beta x (market index return - risk-free rate of return)</em>
Please note that <em>(market index return - risk-free rate of return)</em> is equal to <em>market risk premium</em>
Putting all the number together, we have:
Cost of equity/retained earnings = 2.5% + 2.2 x 8% = 20.1%
<em>Note: The dividend growth rate, tax rate & stock standard deviation is not relevant in answering the question.</em>
Answer:
b. number of shares issued is 80,000
Explanation:
In the question, the common stock par value and the total amount is given. Moreover, paid-in capital is also given.
So, if we compute it, then it gives the number of shares issued because it contains a formula which is shown below:
Number of shares issued = (Common stock ÷ Par value)
= ($80,000 ÷ $1)
= 80,000 shares
So, paid-in capital is not relevant in the computation part, and therefore, the other options are wrong except b. option.
Answer:
acountability, kill bureaucracy before it starts - more functions, fewer departments, more “teams,” fewer committees, open lines of communication, the customer is everybody’s responsibility, never stop “re-inventing” the business.
Explanation:
