Answer:
Texas will be a better option as the net pay after income tax is higher than the other cities.
Explanation:
To consider the after-tax wages we must subtract the income taxes from the salaries:
Pennsylvania after tax income: 62,000 x (1-3.07%) = 60,096.6
Texas after tax income: 64,000
New York after tax income: 68,000 x ( 1 - 6.85%) = 63,342
Answer:
Present value = $35.00326585 rounded off to $35.00
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
- r is the required rate of return
- g is the constant growth rate in dividends
- n is the number of years
Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +
3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]
Present value = $35.00326585 rounded off to $35.00
When using Debt financing, the company incurs a legal obligation to repay the amount borrowed. Retained earnings assign to the percentage of net acquiring not to paid out as dividends, but retained by the company to be reinvested in its core business, or to pay a debt.
Answer:
See below
Explanation:
The preparation of the end December income statement for the company is seen below;
Service revenue
$8,800
Less:
Salaries expenses
($1,950)
Utilities expenses
($1,000)
Net income
$5,850
