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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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It depends. Do you want to start a business? If so, it costs alot of money. First you need to decide what you want you business to be, then you have to build a corporation and hire workers.

8 0
3 years ago
Read 2 more answers
General mills actively researches people who​ don't buy their products to find out why they are not adopters. this practice is m
Margaret [11]

Answer:

The answer is idea generation.

Explanation:

Idea generation refers to the process of creating and developing ideas. During this process, General Mills would come up with ideas and test whether this product would interest people to buy it. At this step as well General Mills can explore why previous products did not succeed and strive to counter these obstacles in the future product.

8 0
3 years ago
Under which condition does a country with a small GDP have a large per capita income?
Ket [755]
When it has a small population
5 0
3 years ago
Casey Motors recently reported net income of $148 million. The firm's tax rate was 40.0% and interest expense was $46 million. T
HACTEHA [7]

Answer:

$61,640,000

Explanation:

Earning before tax:

= Net income ÷ 60%

= $148,000,000 ÷ 60%

= $246,666,667

EBIT:

= Earning before tax + Interest expense

= $246,666,667 + $46,000,000

= $292,666,667

EVA:

= EBIT(1 - t) - (Capital employed × cost of capital)

= $292,666,667(1 - 0.4) - ($1,036,000,000 × 11%)

= $175,600,000 - 113,960,000

= $61,640,000

3 0
3 years ago
Planet Company purchased goods worth $50,000 in July and expects to purchase goods worth $70,000 in August. Planet typically pay
trapecia [35]

Answer:

57,000

Explanation:

Planet company purchases goods worth $50,000July and also expect to purchase goods worth $70,000 in August

They pay 35% of tbs purchase in the month and 75% in the following month

Therefore the total expected cash disbursement can be calculated as follows

= (70,000×35/100)+(50,000+65/100)

= {70,000×0.35) + (50,000+0.65)

= 24,500+32,500

= 57,000

6 0
2 years ago
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