Author Question: For Proposal 2, the tax effect on the sale of the existing asset at the end of the fifth year ... (Read 40 times)

piesebel · **on:** Jul 11, 2018

For Proposal 2, the tax effect on the sale of the existing asset at the end of the fifth year results in ________. (See Table 11.2)

A) 12,000 tax liability
B) 14,560 tax liability
C) 25,280 tax liability
D) 16,600 tax liability

Question 2

Given that the cost of common stock is 18 percent, dividends are 1.50 per share and the price of the stock is 12.50 per share, what is the annual growth rate of dividends?

A) 4 percent
B) 5 percent
C) 6 percent
D) 8 percent