Fi 515 Week 1

FI - 515 Managerial Finance Week 1 Assignment difficulty 2-6: controversy of retain honorarium In its most young financial landed estatements, Newhouse Inc. describe $50 million of net income and $810 million of retained earnings. The introductory retained earnings were $780 million. How much in dividends was paid to shareholders during the course of instruction? execute:- Dividends Paid = earlier Balance Retained Earnings + pay Income - Recent Retained Earnings Dividends Paid = ($780,000,000 + $50,000,000) - $810,000,000 = $830,000,000 - $810,000,000 = $20,000,000 = $20 cardinal PROBLEM 2-7: incarnate tax income Liability The Talley Corporation had a assessable income of $365,000 from operations after all operating costs nevertheless onward (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What are the unanimouss income tax liability and its after-tax income? What are the com panys marginal and average tax rates on assessable income? Answer :- Companys assess Liability: ratable operate Income: $365,000 nonexempt Interest: ($50,000) valueable Dividends Received: $15,000 x (1- 0.7%) = $4,500 tot up nonexempt Income: $319,500 The Companys Marginal measure is 39% (From book) Non- evaluateable Dividends: $15,000 x 0.7% = $10,500 Tax Liability: $22,250 + ($319,500 - $100,000) x 0.

39% = $107,855 Tax Liability = $107,855 After Tax-Income: Taxable Income: $319,500 Taxable: ($107,855) Non-Taxable Dividends: $15,000 x 0.7% = $10,500 final Income: $222,145 Average Tax range = Taxable Interest Income / Taxable O! perating Income Average Tax treasure = $107,855 / $319,500 Average Tax Rate = 0.3375 x 100% Average Tax Rate = 33.8 % PROBLEM 2-9: Corporate After-Tax Yield The Shrieves Corporation has $10,000 that it plans to invest in sellable securities. It is choosing among AT&type A;T bonds, which production 7.5%, state of Florida muni bonds, which yield 5% (but are not taxable), and AT&T preferred stock, with a dividend yield of 6%. Shrieves...If you indispensability to set down a full essay, order it on our website: BestEssayCheap.com

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