1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
o-na [289]
3 years ago
8

Find the after-tax return to a corporation that buys a share of preferred stock at $40, sells it at year-end at $40, and receive

s a $4 year-end dividend. The firm is in the 30% tax bracket.
Business
1 answer:
timofeeve [1]3 years ago
6 0

Answer:

9.10%

Explanation:

Data provided in the question:

Buying cost of the preferred stocks = $40

Selling cost of the preferred stock = $40

Dividends received = $4

Now,

The total before-tax income = Dividend received =  $4

After the 70% exclusion for preferred stock dividends,

The taxable income = 0.30 × $4

= $1.20

Thus,

Taxes = 0.30 × $1.20

= $0.36

Therefore,

The After-tax income

= $4.00 - $0.36

= $3.64

Hence,

Rate of return = [ After-tax income ÷ Buying cost ] × 100%

= [ $3.64 ÷ $40.00 ] × 100%

= 9.10%

You might be interested in
Yarin's gross pay for the year was $3,500. The federal income tax withholding from his pay was 9% of his gross pay. Yarin determ
kakasveta [241]

Answer:

$200

Explanation:

5 0
3 years ago
To win back customers after they have discontinued service, when should the initial communication be made? g
nataly862011 [7]

The following methods can be used to successfully win back customers after they have discontinued service.

<h3>Successfully Re-engage Customers:</h3>
  • Consider the primary cause of the customer's initial reluctance. Take some time to consider what drove your brand to this point before developing unique methods for your re-engagement plan.
  • Surveying your consumers is one of the finest ways to find the answers to your inquiries. Based on how long a consumer has been away from your store, create a survey and email it to them.
  • Targeted email campaigns are a wonderful strategy to re-engage clients in addition to providing a generic email newsletter based on their prior actions and behaviours.
  • Digital re-targeting is the practice of setting cookies on visitors to your website or social media profiles, or tagging them, and classifying them into groups depending on the pages they visit and how they interact with your website.

Existing clients that have already chosen to use your brand for commercial purposes are quite valuable. Don't let them disappear into oblivion.

To know more about advantage of e-mail, here

brainly.com/question/2234629

#SPJ4

4 0
2 years ago
15 points!
nordsb [41]

Answer:

rent

Explanation:

The rent expense will be difficult to revise. Usually, the rent amount is contained in a tenancy agreement signed by both the landlord and the tenant. The rent amount does not change until the lease or tenancy agreement expires. Changing the rent amount would require the landlord's consent.

Due to the above reasons, rent is classified as a fixed cost. It remains constant in the short run.

5 0
3 years ago
Read 2 more answers
What is the relationship between insurance and successful financial management? 1. Why is insurance important? 2. Consider your
tatiyna

Answer:

insurance is important in that it helps you indemnity the losses occured after the risk occurrence

Explanation:

insurance ensures that you are covered from all period and hazards

6 0
3 years ago
A 25-year old client with a low risk tolerance wishes to invest in bonds. The client has invested in equities before, but has no
Gnesinka [82]

Answer: C. AA-rated short-term bonds

Explanation:

It was stated that the client has a low risk tolerance. Therefore, to reduce the credit risk, investment grade bonds are appropriate (BBB or higher). To reduce the interest rate risk, short-term maturities will be preferable to long-term maturities. Both of these factors will result in a safer bond investment.

7 0
3 years ago
Other questions:
  • The company makes 340 units of product P23F a year, requiring a total of 710 machine-hours, 80 orders, and 40 inspection-hours p
    12·1 answer
  • After a 3-year probationary period, career positions at Bayside Community College are fairly secure, even though the opportunity
    13·1 answer
  • Suppose that a firm in a competitive market is currently maximizing its short run profit at an output of 50 units. If the curren
    8·1 answer
  • Both Schedules M-1 and M-3 require taxpayers to identify book-tax differences as either temporary or permanent. T/F
    15·1 answer
  • Your uncle the banker offers to lend you $25,000 to start a new business. You will have to make a payment of $7,000 at the end o
    13·1 answer
  • Why are countries motivated to trade with one another?
    9·2 answers
  • Suppose that market demand is Q = 660 – 12P and marginal cost is MC = 5. The consumer surplus in a perfectly competitive market
    12·1 answer
  • Jessica’s credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. The follo
    13·1 answer
  • A(n) ________ is an internet business model that provides an online meeting place where people with similar interests can commun
    10·1 answer
  • Location externalities (skilled labor force, supporting industries in place, etc.) are considered a __________ factor when choos
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!