Apocalyptica Corp,pays a constant 9.75$ dividend on its stock.the company will maintain this dividend for the next 11 years and will then ease paying dividend forever.if required return on this stock is 10%
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The term Double Taxation refers to taxation that happens on dividends paid through the C- Corp. Often these taxes can both be avoided or mitigated. A certified tax professional should be able to help you in optimizing your tax plan. Paying taxes when you take a distribution from your retirement plan, however, can never legally be avoided.
Franked credits means the company has paid tax on the dividend declared, often 30% in the dollar, but can be other amounts, so if you are paying income tax of 30% in the dollar the dividends are tax free because the company has paid the tax.
Might depend on when you first bought in and how long you want to stay.
Apple is a design company and is only as good as what they can get us to buy next year. Their stuff is better than the rest but costs more. As long as that sells, people will pay a price to ride the wave.
My $114 shares cost me $11 before the split. I've sold 5% and got my investment back. That won't happen again.
1. Make sure the HP-12C is in compounding mode. Press STO-EEX repeatedly until a tiny "C" appears in lower right of display.
2. Make sure "BEGIN" is NOT shown in the display. If it is, press g-END.
3. Clear financial registers: f-FIN. (That is really the "f" key then kind of the "Clear FIN" key -- I'm sure you'll see it.)
4. Enter zero as "initial investment". CLx, then g-CF0. (You have to do this because the 12C actually computes the "NPV" as an excess or deficit over the entered "initial investment". By entering zero, you force the calculator to just give you the actual net present value.)
5. Your first cash flow is +2.00. So, enter 2.00, then press g-CFj.
6. Next cash flow: +2.10. Enter 2.1, then press g-CFj.
7. Last cash flow: +22.20 (the final value of the stock plus the last dividend payment). Enter 22.20, then press g-CFj.
8. Enter the 10% interest (a.k.a. discount) rate. Enter 10, then press "i".
9. Compute the NPV. Press g-NPV. The answer is indeed 20.23 (at least to two decimal places).
abc common stock paid 1.32 pesos in dividends last year and expected to grow 7% annually. Compute for the value of the stock with expected rate of return 11%.
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