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Hatshy [7]
3 years ago
6

Find the after-tax return to a corporation that buys a share of preferred stock at $50, sells it at year-end at $50, and receive

s a $5 year-end dividend. The firm is in the 30% tax bracket. (Round your answer to 2 decimal places.)
Business
1 answer:
enyata [817]3 years ago
5 0

Answer:

After tax Return is $3.50

After tax rate of return is 7.00%

Explanation:

Purchase Price = $50

Price at the end of the year = $50

Dividend Received =$5

Return on share = Dividend + Gain on share price

Return on share = $5 + ( $50 - $50 )

Return on share = $5 + $0

Return on share = $5

After tax return = $5 x ( 1 - 0.3 ) = $5 x 0.7 = $3.5

Rate of return on share = ( Total return / purchase price ) x 100

Rate of return on share = ( $3.5 / $50 ) x 100

Rate of return on share = 7%

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fetzer company declared a $0.55 per share cash dividend. the company has 480,000 shares authorized, 456,000 shares issued, and 1
Svetllana [295]

Debit Retained Earnings $250,800; credit Common Dividends Payable $250,800

<h3>What is a dividend?</h3>

A dividend is the distribution of profits to shareholders by a corporation. When a corporation makes a profit or has a surplus, it has the option of paying a portion of that profit as a dividend to its shareholders. Any money that is left over is taken out and put back into the business.

The total dividend is divided by the number of outstanding shares to determine the dividend per share.

A corporation may choose to disperse a portion of its income in one of four different ways. Your monthly brokerage statement may include information about dividends paid on CASH, STOCK, HYBRID, or PROPERTY investments.

Shares issued= 456,000

Per share cash dividend = $0.55

Dividends Payable = 456,000 x $0.55 = $250,800

Debit Retained Earnings $250,800, credit Common Dividends Payable $250,800

To know more about dividends, visit:

brainly.com/question/29510262

#SPJ1

4 0
1 year ago
A personal characteristic that fosters organizational politics is a) the desire to help. b) need for power. c) drive to be a vis
DanielleElmas [232]

Answer: b) need for power.

Explanation:

Organizational politics are activities that people engage in to be able to further their personal interests even if these interests are not always in the best interest of the company itself.

To be able to further their interests, they need power and influence which means that the personal characteristic that fosters organizational politics is the need to have power.

7 0
2 years ago
A TV manufacturing company uses speakers at the rate of 8000/mo. When it places an order for speakers it incurs a fixed cost of
sveticcg [70]

Solution :

1. Ordering quantity         500      1000      10000     30000        80000

2. No. of orders                 16          8             0.8         0.27            0.1

3. Average inventory        250      500       5000      15000        40000

4. Value of average         2750    5250      50000  142500      370000

   inventory

5. Monthly total cost

a). Cost of material        88000   84000    80000   760000     740000

b). Ordering cost           19200      9600       960          320           120

c). Carrying cost                27.5       52.5       500        1425         3700

Total monthly cost        107227.5 93652.5  81460   77745       77820

Among the total monthly cost, $ 77,745 is the least cost.

Therefore, the optimum order size of quantity = 30,000

The number of orders per month = 8000/30000 = 0.267

Time between two consecutive orders = 30000/8000 = 3.75 months

     

7 0
3 years ago
Researchers have found which of these to be the most popular downward influence tactics?
Lerok [7]
The best and most correct answer among the choices provided by the question is the first choice. On the other hand, the answer for the second question is the second choice. I hope my answers has come to your help. God bless and have a nice day ahead!
8 0
2 years ago
US Apparel (USA) manufactures plain white and solid-colored T-shirts. Budgeted inputs include the following
Artemon [7]

Answer:

A) USA will not be better off switching to the new dye since the cost is greater than the Fine

B)  $118076

C)  The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials

while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset

Explanation:

<u>A) Determine If the USA be better off using the new dye </u>

Units of clothes to be dyed = 50,000

Difference in cost = [ 4 ( 1.25 - 0.5 ) ] = 4 * 0.75 = $3

Total cost of using the new dye = 50000 * $3 = $150,000

Fine = $130,000

hence USA will not be better off switching to the new dye since the cost is greater than the Fine

<u>B) Determine by how much overall cost will be reduced at the end of 12 months using Kaizen costing </u>

<em>condition : reduce fabric and labor cost by 1%</em>

Original Monthly Costs without the use of Kaizen Costing =( Total Units/Number of Months)*(Fabric Cost per Unit + Labor Cost per Unit)*Number of Months

= [( 10000 + 50000 )/12 ) * ( 6 + 4 ) ] *12

= [ 5000 * 10 ] *12  = $600,000

Applying kaizen costing

Given: Fabric cost per unit = $6 , Labor cost per unit = $4

          Total units of production = 10000 + 50000 = 60,000

Kaizen costing formula per month = [ (cost per unit * total units / 12 ) - ( 1% of cost per unit * total units / 12) ]

Total annual cost using Kaizen costing = $56807.61

difference in cost = $600,000 - $568076 = $31924

with the new dye and Kaizen costing the overall cost will be change by $118076  i.e. ($150,000 - $31924) = <em>$118076 </em>

C ) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials

while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset

5 0
2 years ago
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