El toro corporation declared a common stock distribution to all shareholders of record on june 30, 20x3. shareholders will receive one share of el toro stock for each two shares of stock they already own. raoul owns 300 shares of el toro stock, with a tax basis of $60 per share. the fair market value of the el toro stock was $100 per share on june 30, 20x3. what are the tax consequences of the stock distribution to raoul?

A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?

Which three of the following expenses can student aid recover? -tuition -television -school supplies -parties and socializing -boarding/housing