To save time, try a test solution after your first interview

A parent holding company sells shares in its subsidiary such that the parent now owns only 65% of the subsidiary and, thus, the

natita [175]

Answer:

correct option is a) 10.2%; $2,245,000

Explanation:

given data

Gross dividends = $2,500,000

tax rate = 34%

inter company dividends = 70%

to find out

effective tax rate and net dividends

solution

Effective tax rate = (1 - Exclusion) × (Tax rate) ............1

Effective tax rate = (1 – 0.70) × (0.34)

Effective tax rate = 10.2 %

and

net dividends = Gross dividends - Tax ..................2

net dividends = $2,500,000 - [ $2,500,000 (1 – 0.70)×(0.34) ]

net dividends = $2,500,000 – $255,000

net dividends = $2,245,000

so correct option is a) 10.2%; $2,245,000

7 0

3 years ago

Read 2 more answers

Which job in the Finance career would be best for someone who had knowledge of banking and credit systems and the ability to rep

Lerok [7]

A. Let me know if I'm wrong

5 0

3 years ago

Read 2 more answers

A metallurgist has one alloy containing 26%26% copper and another containing 69%69% copper. How many pounds of each alloy must h

Brilliant_brown [7]

Answer:

Ans. He must use 2,987.76 pounds of alloy X (Cu=69%) and 2,365.24 pounds of alloy Y (26%=Cu)

Explanation:

Hi, let´s call alloy X the alloy that contains 69% of Cu and alloy Y the one containing 26% of Cu. Since he needs to produce 5,353 pounds of alloy, the first equation that we need to use is the following.

$X+Y=5,353$

Now, we need this 5,353 pounds of the new alloy to be 50% Cu, therefore, we have to use a portion of alloy X and alloy Y. This is as follows.

$0.69X+0.26Y=0.5(X+Y)$

And we have already established that X+Y is equal to 5,353, therefore this equation should look like this.

$0.69X+0.26Y=5,353*0.5$

$0.69X+0.26Y=2,676.5$

And we solve for X this equation, this as follows.

$0.69X=2,676.5-0.26Y$

$X=\frac{2,676.5-0.26Y}{0.69}$

$X=3,878.98-0.3768Y$

Now, we use this result and substitute this for X in the first equation like this.

$3,878.98-0.3768Y+Y=5,353$

and then, we solve for Y

$0.6232Y=5,353-3,878.98$

$Y=\frac{1,474.02}{0.6232} =2,365.24$

So, he needs to use 2,365.24 pounds of alloy that contains 26% of Cu, this means that the rest (2,987.76 pounds) must come from the alloy that contains 69% of Cu.

We can check this result by finding the overall Cu obtained by this amounts of alloy, that is

$Coppper FromX=2,987.76*0.69=2,061.55$

$Coppper FromY=2,365.24*0.26=614.96$

That adds up to 2,676.51 pounds of pure Cu, and since the total weight of the new alloy is 5,353, this amount of copper makes up for:

$PercentCu=\frac{2,676.51}{5,353} =0.5$

50% of the total weight.

Best of luck.

7 0

3 years ago

True or false: industrial policies of the united states have been more formal than those of europe and japan. the u.s. governmen

mixer [17]

<span>False. Industrial policies of the United States have been less formal than those of Europe and Japan. The U.S. government encourages exports via its Export-Import Bank and Commodity Credit Corporation. Firms are also allowed to form export trading companies and export trade associations.</span>

5 0

4 years ago

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Delvig [45]

Answer:

A) $97,600

Explanation:

Calculation for the net cash provided or used by operating activities

OPERATING ACTIVITIES

Net Income $86,800

Depreciation Expense 13,500

Gain on Sale of Land (6,800)

Increase in Merchnadize Inventory (3,550)

Increase in Accounts Payable 7,650

Net Cash provided by Operations $97,600

Therefore the net cash provided or used by operating activities will be $97,600

4 0

3 years ago