Answer:
a. What is Riverbend’s deductible DRD assuming it owns 10 percent of Hobble Corporation?
- $250,000 x 70% = $175,000
b. Assuming the facts in part (a), what is Riverbend’s effective tax rate on the dividend?
- $15,750 / $250,000 = 6.3%
current corporate tax rate = 21%, ($250,000 - $175,000) x 21% = $15,750
c. What is Riverbend’s DRD assuming it owns 51 percent of Hobble Corporation?
- $250,000 x 80% = $200,000
d. Assuming the facts in part (c), what is Riverbend’s marginal tax rate on the dividend?
e. What is Riverbend’s DRD assuming it owns 87 percent of Hobble Corporation (and is part of the same affiliated group)?
f. Assuming the facts in part (e), what is Riverbend’s marginal tax rate on the dividend?
Explanation:
the dividends received deduction:
- less than 20% stake, 70% deduction
- stake between 20-80%, 80% deduction
- more than 80% stake, 100% deduction
Answer
The demand for land will increase. and the price of land will increase.
Answer:
The answer is A. decreases from 20 to 8
Explanation:
Money multiplier is the amount of money that commercial banks generate with each dollar of their reserves.
The formula is:
1/reserve requirement.
When the reserve requirement was 5 percent, money multiplier will be:
1/0.05 =20
And when the reserve requirement was 12.5 percent, money multiplier will be:
1/0.125 = 8.
Therefore, money multiplier decreases from 20 to 8
Answer:
The coupon rate is 6.32% or nearest to b.6.16%.
Explanation:
The price of the bond is equal to the present value of its principal repayment plus its annual coupon.
Denote: x is the coupon rate => Annual coupon payment is 1,000x
=> The price of the bond, with the yield to maturity at 10%, is calculated as below:
1,000/1.1^6 + 1,000x * (1 - 1.1^-6)/0.1 = 840 <=> 1,000x * (1 - 1.1^-6)/0.1 = 275.526 <=> 1,000x = 63.263 <=> x = 6.32%.
So, the coupon rate is 6.32% or nearest to b.6.16%.
Answer:
False.
Explanation:
Attribution theory suggests that leadership arises because of the existence of certain attributions of the persons like intelligence, oral skills or determination. In no way this approach tries to prioritize the objectives of an organization. Actually, explains certain dynamics in capital human which explains the leadership and how share and stakeholders understand the concept.