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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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Explanation:

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3 years ago
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Outstanding cheques​ 3,000

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4 0
3 years ago
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Suppose the Board of Directors of The Staten Island Suppliers Co. announces on October 4th that the regular quarterly dividend o
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Answer:

a. October 4th

b. November 15th 2019

c. November 14th 2019.

d. December 13th, 2019 (Note: This is assumed based on the explanation below as it is not specifically stated in the question).

Explanation:

a. What date is the declaration date?

The declaration date is the date the announcement to pay the next dividend is made by the board of directors of a company. In this case, the declaration date is October 4th, 2019.

b. What date is the holder of record date?

The holder of record date refers to the cut-off date set by a company to ascertain the eligible shareholders that will receive the next dividend payment. In this case, the holder of record date is November 15th 2019.

c. What date is the ex-dividend date?

The ex-dividend date refers to date that a seller of stock is still eligible to receive dividend despite that the stock has already been sold to a by him. This is because it is the person that hold the security on the ex dividend date that will receive the dividend payment not the holder on the payment date. Generally, ex-dividend date is usually one business day before the record date. In this case,he ex-dividend date is November 14th 2019.

d. What date is the payment date?

The payment date refers to the actual day that eligible shareholders are paid the declared dividend by the company. It is usually a few weeks or month after the ex-dividend date. If we assumed to be a month, the payment date would be December 13th, 2019.

6 0
3 years ago
Suppose first main street bank, second republic bank, and third fidelity bank all have zero excess reserves. the required reserv
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3 years ago
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Please the remaining part of the question below :

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3.Principles that determine whether an action is right or wrong.

4.Accounting professionals who provide services to many clients.

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Answer:

1.Amount a business earns after paying all expenses and costs associated with its sales and revenues. - Net income (G)

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Explanation:

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