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2 years ago

Which of the following statements is true of a corporation?

Business

2 answers:

Butoxors [25]2 years ago

8 0

Answer:D

Explanation:

Vladimir [108]2 years ago

3 0

Answer:

d. Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from the sale of stock.

Explanation:

At the end of each accounting period, the corporation is expected to pay a tax known as income tax from the taxable income earned by the corporation. This tax is paid by the corporation before the amount to be paid to the shareholders of the company in form of dividends.

The shareholders of the company are further subjected as individuals to personal income tax.

This is known as double taxation of dividend. Gains from sale of stock are also taxed under personal income tax.

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You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize w

Oksanka [162]

Answer:

Present Value= $1,772.115

Explanation:

Giving the following information:

You have won the $3 million first prize in the Centennial Lottery.

However, the prize will be awarded on your 100th birthday, 78 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent.

We need to use the following formula:

PV= FV/[(1+i)^n]

PV= present value

FV= final value

PV= 3000000/(1.10^78)= $1,772.115

7 0

3 years ago

1. Dominic Joseph deposits $5,000 in a new savings account at his local bank. The account pays 5.5 percent interest compounded a

klasskru [66]

Answer:

The future value is $6,894.21

Explanation:

Giving the following information:

Dominic Joseph deposits $5,000 in a new savings account. The account pays 5.5 percent interest compounded annually.

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

PV= 5,000

i= 0.055

n=6

FV= 5,000*(1.055)^6= $6,894.21

5 0

2 years ago

Ornaments, Inc., is an all-equity firm with a total market value of $608,000 and 27,300 shares of stock outstanding. Management

Stels [109]

Answer:

The EPS in recession is $1.546 per share.

Explanation:

The earnings per share or EPS is a function of net income divided by the number of shares outstanding. The earnings per share calculates the dollar return per share that is earned in a year.

Earnings per share = Net Income / No of common shares outstanding

Where, Net Income = EBIT - Interest - Tax

The EBIT in recession will be = 86600 * (1-0.25) = $64950

The company is all equity financed so there is no interest cost.

Net Income in recession will be = 64950 - (64950 * 35%) = $42217.5

Thus, EPS in recession = 42217.5 / 27300 = $1.546 per share

3 0

2 years ago

Bond payments are generally more predictable than stocks because:_______.

lianna [129]

The bond payments are more predictable than stocks because bond owners know the size and timing of payments they will receive.

Bonds refers to the promise by a borrower to pay the lender his/her principal and the interest on the loan given.

Bonds is an instrument used by company as an alternatives to taking a loan from banks.

Generally, the bond payments are more predictable than stocks because bond owners know the size and timing of payments they will receive.

Therefore, the Option C is correct.