Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Capital gains taxes Perkins Manufacturing is considering the sale of two nondepreciable assets, X and Y. Asset X was purchased for $2,000 and will be sold today for $2,250. Asset Y was purchased for $30,000 and will be sold today for $35,000. The firm is subject to a 40% tax rate on capital gains.
a. Calculate the amount of capital gain, if any, realized on each of the assets.
b. Calculate the tax on the sale of each asset.
The firm's assets will then be liquidated and the proceeds invested in the preferred stock of other firms so that the company will be able to pay an annual dividend of $1.75 indefinitely. If your required return on investments in common stock is 10 p..
An investor writes (or sells) one put option contract. If the price of gold in the spot market at the maturity date of the option is $1095, what is her profit-loss - The spot rate for the euro when the forward contract matures is $1.50/€. What is h..
1 how does corporate strategy differ from business strategy?2 how has the practice of corporate strategy evolved over
Explain the difference between bank credit risk and bank capital risk - What is the difference between lending to individual borrowers via a residential home mortgage compared to other types of consumer lending?
The CFO of Daves Industries plans to have the company issue $300 million of a new common stock and use the proceeds to pay off some of its outstanding bonds that carry a 7% interest rate. Assume that the company, which does not pay any dividends, tak..
Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of capital (or interest rate) for this type of business was 7% with month..
Red Corp issues $1,000,000, 8% five year bonds with interest paid semiannually. The current market rate of interest is 10%. Compute the price of the bond. Compute the discount/premium. Record the issuance of the bonds. What was the net cash flow from..
Max has decided to establish distributorship subsidiaries in various countries, while Marie has decided to establish manufacturing subsidiaries in various countries. Which firm is more likely to benefit from economies of scale?
Sales and profits of Growth Inc. are expected to grow at a rate of 25% per year for the next six years but the company will pay no dividends and reinvest all earnings. After that, the dividends will grow at a constant annual rate of 7%. At the end of..
Stock J has a beta of 1.3 and an expected return of 13.66 percent, while Stock K has a beta of 0.85 and an expected return of 10.6 percent. You want a portfolio with the same risk as the market. What is the portfolio weight of each stock?
What impact would change have on the equity value of the business and what if the growth rate were only 2 percent?
Summers Corp. currently has an EPS of $2.40, and the benchmark PE for the company is 23. Earnings are expected to grow at 5 percent per year. What is your estimate of the current stock price? What is the largest stock price in one year?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd