Answer:
1. $12.31
2. -11.96%
Explanation:
a) Calculation to determine the intrinsic value of a share of Xyrong stock
First step is to calculate the Required Return
Using this formula
Required Return = Risk-free Rate + [Beta * (Expected Market Return - Risk-free Rate)]
Let plug in the formula
Required Return= 5.5% + [2.7 * (17% - 5.5%)]
Required Return= 5.5% + 31.05% = 36.55%
Second step is to calculate g using this formula
g = ROE * (1 - Payout Ratio)
Let plug in the formula
g= 18% * (1 - 0.25)
g= 13.5%
D0 = EPS0 * Payout Ratio = $10 * 0.25 = $2.50
P0 = [D0 * (1 + g)] / [r - g]
= [$2.50 * (1 + 0.135)] / [0.3655 - 0.135]
= $2.8375 / 0.2305 = $12.31
b). Holding Period Return = [P1 + D1 - P0] / P0
= [$8 + $2.8375 - $12.31] / $12.31 = -$1.4727 / $12.31 = -0.1196, or -11.96%
Answer:
d) $100,000
Explanation:
In answer to this question, Tricia must include $100000 as the amount of the discharge of indebtedness from the disposition of her principal residence when when she is completing her Schedule CA for the year 2019.
We have option d, 100000 dollars as the answer because the amount of debt forgiven is known to be taxable.
Answer:
a. Rao indorses his payroll check in blank.
Explanation:
There are many types of indorsements, and out of them one is "Trust Indorsement"
Trust Indorsement is an indorsement to a person who can use the funds for the benefit of the indorser.
Example:
Brian indorses a check to his employee Denny "Payable to Denny, as agent for Brian", This is an example of trust indorsment.
Option b and c are clearly examples of trust indorsements in which you can notice that Rao has indorsed his lawyer and accountant "as agent for Rao".
Whereas, option a is NOT a trust indorsment but rather a "Blank Indorsement"
Blank Indorsment is an indorsement that doesn't have any particular indorsee and only has a signature on it.
Its rubber boots which protects <span>you from chemicals and provides extra traction on slippery floors.
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Answer: socially wasteful
Explanation:
Product differentiation is when a product is being distinguished from similar products in order to make it more appealing and therefore drive consumers choice.
It should be noted that critics of market-oriented economies may argue that product differentiation is socially wasteful.
