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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%

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Ronald suffers from dementia that impacts his brain function, but he also has healthy periods of time when his mind is fully fun
vova2212 [387]

Answer:

2. False

Explanation:

Capacity to a contract refers to whether the person to a contract is legally competent to enter into such a contract.

For instance, lunatics, drunkards, minors, criminals and person of unsound mind are deemed incapable of entering into a contract.

A person diagnosed with dementia, which impairs his decision making would normally be regarded as incapable to signing a contract.

But, capacity is ascertained as per the situation i.e at the time the contract is signed or entered into.

In the given case, Ronald entered a contract while he was sane and in healthy state of mind. His judgement at the time of entering such a contract wasn't impaired by dementia.

Thus, the contract will be legally enforceable as per the law.

6 0
3 years ago
What aspect of a website makes it easy to understand?
enot [183]

Keeping the website design simple and not too complex will increase the understandability of the website design.

<u>Explanation:</u>

There are certain factors that should be kept in mind while designing a website. Those factors are Keep the design of the website simple. Cramming too much into the design of each page creates confusion. Make a good impression.

The owner of the website should Provide intuitive navigation. Be consistent Choose your colors carefully to make the design of the website look attractive. Make your website responsive Develop for multiple browsers. Check your website for errors

3 0
3 years ago
A company is planning to move to a larger office and is trying to decide if the new office should be owned or leased. Cash flows
skad [1K]

Answer:  13.26%

Explanation:

Year 0 Investment = $385,000

Incremental Cash flow every year = Cashflow if owned - Cashflow if leased

= 164,000 - 133,000

= $31,500

Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property

= 31,500 + 750,000

= $781,500

Using Excel and the IRR function, the rate is = 13.26%

5 0
4 years ago
Many leaders have difficulty implementing their vision and strategies. Such problems may stem from a variety of issues in the de
KATRIN_1 [288]

Answer:

Inappropriate budgeting and control system

Explanation:

If there is no proper budgeting with respect to the revenues, expenses and also if there is no proper control than the implementation of the vision and strategies would become difficult due to which organization is not able to accomplish its goals and objective within a prescribed time

There should be proper structure of work by considering the budgeting and control system as if any organization would ignore this then they would lead to suffered high losses

Therefore as per the given scenario, the third option is correct

7 0
4 years ago
What does place mean when referring to marketing?
Ludmilka [50]
In marketing, place refers to where a product is being sold. When it says "in these select stores," that's the place.
5 0
4 years ago
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