tax differential theory, Business Management

Assignment Help:
Tax differential theory: a method of valuing shares with constant growth to DI/P0 Xg An investor is faced with 2 investment choices: First choice of shares with market price(po)=Rp1000 million, first year ddivident (DI)=12% and growth rate(g)=3%. Second option, share with market price(po) Rp=1000 million. First year divident (DI)=4% and growth rate of 11% the shares will only be held for one year. Brothers are asked to choose investments in the first or second share .When (a) Divident tax and growth tax equal to 25%, (b) Divident tax of 25% while tax growth is 20%, (c) 20% divident tax while 25% growth tax

Related Discussions:- tax differential theory

Home assignement, 7 p''s in services marketing in govt college

7 p''s in services marketing in govt college

DORIC CONVERSION TECHNOLOGIES, Explain the ethical issues from Peter Johns...

Explain the ethical issues from Peter Johnson''s point of view.

Discuss the functions of school libraries, QUESTION 1 Discuss the devel...

QUESTION 1 Discuss the development of libraries in Mauritius. QUESTION 2 Discuss the functions of school libraries. QUESTION 3 Developments in the 21st century

Models, definition of a model

definition of a model

Development of an environmental management system, Question: (a) Brief...

Question: (a) Briefly describe the five steps in the development of an environmental management system. (b) The environmental policy instruments have so far focused on t

Discuss how to analyse problems and their causes, QUESTION 1 Discuss ho...

QUESTION 1 Discuss how to analyse problems and their causes with respect to common problem solving pitfalls QUESTION 2 In planning and managing projects, project manage

Preparation of a business plan, The ability to recognize the need for a bus...

The ability to recognize the need for a business plan is now widely regarded as a sign of both business maturity and the likelihood of survival. (a) Discuss the benefits that ca

Explain the purpose and relevance of a business plan, Question 1: (a) E...

Question 1: (a) Explain the purpose and relevance of a business plan within the hospitality sector. (b) Discuss the importance and role of market research within business pl

Breakdown maintenance, As the name suggest corrective maintenance occurs...

As the name suggest corrective maintenance occurs when there is a work stoppage because of machine breakdown. In this sense maintenance becomes repair work. Repairs are

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd