Suppose the dividends for the Seger Corporation over the past six years were $3.08, $3.16, $3.25, $3.33, $3.43, and $3.48, respectively. Assume that the historical average growth rate will remain the same for 2020. Compute the expected share price at the end of 2020 using the perpetual growth method. Assume the market risk premium is 12.6 percent, Treasury bills yield 5.2 percent, and the projected beta of the firm is .81.
Share price:
In: Finance
Vanessa spent 45 days of 2020 in a nursing home. The cost of the services provided to her was $18,900. Medicare paid $7,900 toward the cost of her stay. Vanessa also received $9,100 of benefits under a long-term care insurance policy she purchased. The 2020 per diem rate is $380.
What is the effect on Vanessa’s gross income?
Her available exclusion is $, therefore, the amount included in her
gross income is $.
In: Accounting
Victoria's 2019 tax return was due on April 15, 2020, but she did not file it until June 12, 2020. Victoria did not file an extension. The tax due on the tax return when filed was $10,000. In 2019, Victoria paid in $16,500 through withholding. Her 2018 tax liability was $14,500. Victoria’s AGI for 2019 is less than $150,000. How much penalty will Victoria have to pay (disregard interest)?
In: Accounting
Executive Summary:
Underlying Assumption:
In: Accounting
Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$2,000,000 budget, $2,080,000 actual; variable costs—$1,000,000 budget, $1,050,000 actual; and controllable fixed costs—$300,000 budget, $305,000 actual. Prepare a responsibility report for the Water Division for the year ending December 31, 2020. Prepare a responsibility report for a profit center.
In: Accounting
Marjorie corporation acquired a building on January 1st 2018 for $660,000 the building had an estimated useful life of 15 years and had an estimated residual value of $60,000. on January 1st 2020 Marjorie corporation determined that the building could only be used for a total of 12 years and there would be no residual value. compute depreciation expense for the year ending December 31st 2020 if Marjorie corporation uses straight line depreciation
In: Accounting
OCT 2020 PUTS - last price 7.90 ; vol - ; strike 28.00
1. You sold twenty Oct 2020 put contracts today at $7.90. Two weeks later the stock trades at $22.30 and the premium on the put is $9.90. How much money have you made or lost at this point in time?
2. Briefly explain whether selling uncovered calls is more, less or of equal risk than selling puts?
In: Finance
In: Accounting
A simple random sample of 80 colleges and universities is selected, and 16 indicated will move their summer 2020 classes online while the other 64 indicated they did not plan to move their summer 2020 classes online . If appropriate, use this information to test the hypotheses stated in question 10 at the a = .10 level of significance. Please type your answer in the box below.
Hypothesis: H0: π = 0.14 versus HA: π > 0.14
In: Statistics and Probability
Becker Inc. reported net income of $560,000 on its income statement for 2020. Depreciation expense for the year was $63,000. Over the course of the year, Becker also experienced the following changes in account balances:
Accounts payable: $12,000 increase
Inventory: $18,000 increase
Accounts receivable: $9,000 decrease
Accrued liabilities: $19,000 decrease
Prepaid insurance: $7,000 decrease
Determine net cash provided by operating activities for 2020.
In: Accounting