1. FORGIVENESS - Cheryl received a student loan to pursue a degree to become a dental assistant. But unfortunately her school closed down due to legal complications. As Cheryl couldn't complete the course due to no fault of her own, Cheryl need not pay back the loan.
2. DEFAULT - Tom got a student loan to pursue a nursing science degree. But he couldn't manage his money well enough, due to which he was unable to pay back his loan.
3. WORK-STUDY - Sam is pursing an undergraduate program in Economics. He works as an assistant to the financial aid officer, which helps him earn $4000 annually. This helps him pay a few educational expenses.
Answer:
$1,291
Explanation:
The computation is shown below:
Per day allocation = $1,475 ÷ 360 days = 4.0972
Now the days of the seller is counted from January to October month i.e
= 10 months × 30 days
= 300 days
And, add the 15 days of November, so the total number of days is 315 days
So, the seller portion of the tax is
= 315 days × 4.0972
= $1,291
The calendar year started from January month and we take the same for the above calculation
Answer:
Current dividend per share paid (Do)
= <u>Total dividend </u>
No of shares outstanding
= <u>$1,600,000</u>
1,000,000 shares
= $1.60 per share
Current market price = $31
Growth rate = 8% = 0.08
Ke = Do<u>(1 + g)</u> + g
Po
Ke = $1.60<u>(1 + 0.08)</u> + 0.08
$31
Ke = 0.1357 = 13.57%
Interest rate on borrowing (Kd) = 10%
Tax rate (T) = 40% = 0.40
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 13.57(65/100) + 10(35/100)(1 - 0.4)
WACC = 8.82 + 2.10
WACC = 10.9%
The correct answer is A
Explanation:
In this case, we need to calculate cost of equity. The cost of debt has been given, which is the interest rate on long-term borrowing (10%). Since the debt proportion in the capital structure is 35% and equity proportion is 65%, it implies that the value of the firm is 100%. Then, WACC is the aggregate of cost of each stock and the proportion of each stock in the capital structure.
Answer:
$19,215.65
Explanation:
To the determine the amount to be invested, we have to find the present value of $22,000 at 7%
P= FV ( 1 + r) ^-n
FV = Future value = $22,000
P = Present value
R = interest rate = 7%
N = number of years = 2
$22,000(1.07)^-2 = $19,215.65
I hope my answer helps you
Available Options are:
A. Investors' allowable investment depends on the accredited or non-accredited status.
B. Investors may invest a combined $50 million within a 12-month period.
C. Investors may invest no more than $1 million combined for the first year of the business.
Answer:
Option C. Investors may invest no more than $1 million combined for the first year of the business.
Explanation:
The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:
1. $2000
2. Or the lesser of (If the net worth of Wendy is less than $100,000)
- 5% of its total income for the year
- Net worth
There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.
Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.
This means the non-accredited investor can not invest more than $1 million.
