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3 years ago

It is not unusual for companies to issue type(s) of common stock and type(s) of preferred stock.

1 answer:

8 0

It is not unusual for companies to issue ONE type of common stock and MANY types of preferred stock. A preferred stock is a level of ownership in a corporation that has upper hand over its assets and earnings than common <span>stock. Common stock</span><span> holders however, are the ones who exercise control over the corporation by electing a board of directors and voting on corporate policy.</span>

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An asset falling under the MACRS five-year class was purchased three years ago for $200,000 (its original depreciation basis). C

Nitella [24]

Answer:

(a) The cash flows is $59,040.

(b) The cash flows is $71,040.

Explanation:

From the Modified Accelerated Cost Recovery System (MACRS) Tables, the depreciation rates for the first 3 years for an asset falling under the MACRS five-year class are 20%, 32% and 19.2%. Therefore, we have:

Accumulated depreciation rate = 20% + 32% + 19.2% = 71.20%

Accumulated depreciation = Cost of the asset * Accumulated depreciation rate = $200,000 * 71.20% = $142,400

Net book value of the asset = Cost of the asset - Accumulated depreciation = $200,000 - $142,400 = $57,600

We can now proceed as follows:

(a) Calculate the cash flows if the asset is sold now at $60,000

Capital gains = Sales proceeds - Net book value = $60,000 - $57,600 = $2,400

Capital gains tax = Capital gains * Tax rate = $2,400 * 40% = $960

Net sales proceeds = Sales proceeds - Capital gains tax = $60,000 - $960 = $59,040

Therefore, the cash flows is $59,040 net sales proceeds.

(b) Calculate the cash flows if the asset is sold now at $80,000

Capital gains = Sales proceeds - Net book value = $80,000 - $57,600 = $22,400

Capital gains tax = Capital gains * Tax rate = $22,400 * 40% = $8,960

Net sales proceeds = Sales proceeds - Capital gains tax = $80,000 - $8,960 = $71,040

Therefore, the cash flows is $71,040 net sales proceeds.

3 0

3 years ago

____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industr

Schach [20]

GOVERNMENT SUBSIDIES are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.

Government subsidies are assistance given by the government to a person or a group of individuals in support of an enterprise that is for the public interest.

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3 years ago

Before attempting to lift any material, _________.

andre [41]

Check its weight. Then it will be easier for us

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4 years ago

You expect KT industries (KTI) will have earnings per share of $ 6 $6 this year and expect that they will pay out $ 1.25 $1.25

Hatshy [7]

Answer:

$8.93

Explanation:

The payment made to the stockholders is known as dividend.

Price of the stock can be determined by calculating the present value of all future expected dividends using cost of capital.

In this question $1.25 per share dividend is paid and rate of return / cost of capital is 14%, so price of stock will be calculated as follow.

Price of the share = Dividend / Cost of Capital = $8.93

Price of the share = $1.25 / 14% = $8.93

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3 years ago

Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art

kap26 [50]

Answer:

Explanation:

The expenses that Ryan can deduct for the business trips he had is calculated by summing up the expenses he had with regards to gasoline and the depreciation.

Cost of gasoline = (3,760 miles)($1,590/18,800 miles) = $318

Cost of depreciation = $4,800

Adding the costs will give us an answer of $5118.

Answer: $5,118

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3 years ago

It is not unusual for companies to issue ____ type(s) of common stock and ____ type(s) of preferred stock.

It is not unusual for companies to issue type(s) of common stock and type(s) of preferred stock.