Answer:
Option B $9 million is the correct answer.
Explanation:
The current portion of income tax expense is the taxable for the year multiplied by the prevalen tax rate in the year.
Current portion of income tax expense=taxable income*tax rate
taxable income is $30 million
tax rate is 30%
current portion of income tax expense=$30 million*30%=$ 9 million
Option B is the correct answer
However,if one chooses option A,it implies that one had used pretax net income of $25 million in computing the income tax expenses instead of taxable income on which tax is payable
Because she had repaid the mortgage fully, the Big Bank filed a satisfaction of a mortgage with Bonnie to discharge her lien.
<h3>What is a satisfaction of mortgage?</h3>
This refers to a document that serves as evidence the debtor has paid the mortgage in full and also releases the lien associated with the loan from your property and transferring the title to them.
Hence, because she had repaid the mortgage fully, the Big Bank filed a satisfaction of a mortgage with Bonnie to discharge her lien.
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Answer:
Current dividend paid (Do) = $1.35
Growth rate (g) = 11% = 0.11
Cost of equity (ke) = 24% = 0.24
Po = Do<u>(1 + g)</u>
Ke - g
Po = $1.35<u>(1 + 0.11)</u>
0.24 - 0.11
Po = <u>$1.4985</u>
0.13
Po = $11.53
Explanation:
The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.
Answer:
<u><em></em></u>
- <em>At the end of the first compounding period: </em><u>$1,050.00</u>
- <em>At the end of the second compounding period: </em><u>$1,102.50</u>
Explanation:
<u />
<u>1. First period:</u>
- <em>APR = 10%</em> = 0.1 compounded semi-annually.
- <em>Semi-annually compound interest</em>: 0.1 / 2 = 0.05
- Interest earned at the end of the first period: $1,000 × 0.05 = $50.00
- Amount in the accoun at the end of the first period:
$1,000.00 + $50.00 = $1,050.00
<u>2. Second period</u>
- Amount in the account beginning the second period: $1,050.00
- Semi-annually compound interest: 0.1 / 2 = 0.05
- Interest earned in the second period:
$1,050.00 × 0.05 = $50.00 = $52.50
- Amount in the account at the end of the second period:
$1,050.00 + $52.50 = $1,102.50
Answer:
$587,500
Explanation:
You are required to calculate the value of the levered firm;
vL = vU + Dt, whereby;
vL = Value of levered firm
vU = value of unlevered firm
Dt = debt * tax ; which is the tax shield
Find value of unlevered firm;
vU = [EBIT(1-tax) ]/ rE
= [100,000(1-0.30)] / 0.16
= 437,500
Value of levered firm;
vL = 437,500 + (500,000*0.30)
= 437,500 +150,000
= $587,500
