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3 years ago

5

An investor has a $5,000 pretax return, The state tax rate is 4.5%, and the federal tax rate is 22.0%, what is the real investme

nt value?

1 answer:

Vesna [10]3 years ago

4 0

The real investment value is $3,675

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A subsidiary can pay only 50% of its profits to its parent company unless the subsidiary's accumulated retained earnings have be

Aleks [24]

Answer:

False

Explanation:

There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.

7 0

3 years ago

McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but

ratelena [41]

Answer:

YTM = 6.88%.

YTC = 4.26%.

Explanation:

a. Calculation of Yield to Maturity (YTM)

The bond's Yield to Maturity can be calculated using the following RATE function in Excel:

YTM = RATE(nper,pmt,-pv,fv) .............(1)

Where;

YTM = yield to maturity = ?

nper = number of periods = number of years to maturity = 25

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = face value or par value of the bond = 1000

Substituting the values into equation (1), we have:

YTM = RATE(25,90,-1250,1000) ............ (2)

Inputting =RATE(25,90,-1250,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 6.88%.

Therefore, YTM is 6.88%.

b. Calculation of Yield to Call (YTC)

The bond's Yield to call can be calculated using the following RATE function in Excel:

YTC = RATE(nper,pmt,-pv,fv) .....................(3)

Where;

YTM = yield to call = ?

nper = number of periods = number of years to call = 5

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = future value of the bond or the amount at which the bond can be called = $1,050 = 1050

Substituting the values into equation (3), we have:

YTM = RATE(5,90,-1250,1050) ............ (4)

Inputting =RATE(5,90,-1250,1050) into excel (Note: as done in the attached excel file), the YTC is obtained as 4.26%.

Therefore, YTC is 4.26%.

6 0

3 years ago

On December 31, 2016, Ditka Inc. had Retained Earnings of $285,800 before its closing entries were prepared and posted. During 2

lakkis [162]

Answer:

<u>Closing Entries Dated 31, 2016</u>

Dr. Cr.

Closing Income Accounts

Service revenue $186,100

Interest revenue $90,300

Income Summary $276,400

Closing Expense Accounts

Income Summary $153,400

Supplies Expense $96,900

Advertising expenses $18,200

Salaries and wages $21,000

Income tax expense $17,300

Closing Income Summary Account

Income Summary $123,000

Retained Earning $123,000

Closing Dividend Account

Retained Earning $7,800

Dividend $7,800

Explanation:

All the Income and Expenses accounts are closed to Income summary account. The net balance of income summary account is transferred to retained earning account. The dividend balance is also transferred to retained earning account to close it. Ultimately all the balances are netted off in retained earning account.

8 0

3 years ago

Today the economic systems of most nations could accurately be classified as

geniusboy [140]

<span>The answer is </span>

<span>Mixed economies</span>

5 0

3 years ago

Relevance has always been the challenge of the advertising industry. Summarize Kristi Roger's assessment of the advertising indu

Alina [70]

Answer:

Please see explanation below.

Explanation:

Advertising plays a very important role in the organizations. Advertising is a paid type of promotion which the companies use to promote its products. Companies success depends upon the right type of advertising channels which the companies uses. Kristi had done a great analysis on advertising and so argues that relevance is very very important factor that plays a major role in advertising. In her talk she says that the advertisements should reach the right person in right time. Every advertisers duty is to see that right person sees the right advertisement at right time. To make this statement true the advertisers should use the technology to a greater extent. Now coming to the marketing managers every marketing manager should look into the major challenges that occurs in the market. If marketing managers are not getting updated with these changes then it brings a major effect on ROI (Return On Investment). The following makes the marketing manager to benefit more from advertising: hiring the person who is good in quantitative skill rather than creative skill, this is because analysing the market is very important than bringing creative products into the market. A quantitative skilled person can analyse the situation properly and can eliminate four out of five processes that occurs in the digital campaign development. Quantitative experts can make the advertisements to the reach to the right person in right time which brings good results to the company.

6 0

3 years ago