Answer:
What is the expected dividend yield for Portman's stock today?
d. 6.40%
Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?
a. $0.52 per share
Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900
Explanation:
cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%
dividend in one year = $1.68 x 120% = $2.016
intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50
expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%
Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244
Answer:
The correct answer would be option B, GreyHound Bus System.
Explanation:
Greyhound Bus System is considered to be the generic competitor for Southwest Airline. Generic competitors are the ones who have different products or provide different services but the purpose of the product or service remains the same.
So the Greyhound Bus System and Southwest Airline both provide different services, as Greyhound bus system allows travelling through bus while Southwest Airlines allow travelling through aircraft, but the purpose of both the companies remain same, which is to travel or to transport people from one place to another. So these both companies will be the generic competitor of each other.
Determining Depreciation Recapture.
Sale Value = $99,000
Less: Adjusted basis(book value) = ($75,000)
Depreciation recapture = $24,000
So Depreciation recapture = $24,000
The marginal tax rate is the amount of additional tax paid for each additional dollar earned in income. The average tax rate is the total tax paid divided by total income. A marginal tax rate of 10% means that 10 cents from the next dollar you earn will be tax deductible.
In taxation, a tax rate is a rate at which a company or individual is taxed. There are several ways to express tax rates, including statutory, average, marginal, and effective. These tax rates can also be presented using different definitions (inclusive and exclusive) that apply to the tax base.
Learn more about marginal tax here
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Answer:
Commerical paper
Explanation:
Commerical paper is a short-term security, or note, containing a borrower's promise to pay.
There was a previous question like that, so i remember the answer.
~<u>rere</u>
