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Neporo4naja [7]
3 years ago
6

Annie invested in a set of stocks and made $4,000 in profit. She has learned that she will have to pay taxes on the profit she h

as made. Here are the tax rates affecting Annie’s investment: State tax: 5% Federal tax: 25% Annie must pay in taxes to the state government on her investment. She also must pay in taxes to the federal government. As a result of the money she will lose to taxes, the real value of Annie’s profit is .
Business
2 answers:
Bas_tet [7]3 years ago
7 0

1. $200

2. $1,000

3. $2,800

yKpoI14uk [10]3 years ago
3 0

Answer: <em>Real value of Annie's profit</em>= Profit made on stocks - State Tax paid - Federal tax Paid

= $ 4,000 - (0.05 i.e. 5% of $ 4,000 + 0.25 i.e. 25% of $ 4,000)

= $ 4,000 - ( $ 200 + $ 1,000)

= $ 4,000 - $ 1,200= $ 2,800

Explanation: The state and federal taxes of 5% and 25% respectively, both are computed separately on the profit made by Annie of $ 4,000.

The <em>Real Value of Annie's profit</em> is thereby computed by deducting the amounts of legal tax liabilities from the profit made.

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Answer:

$165,000

Explanation:

Free cash flow is the net cash cash flow available for the shareholders or for the reinvestment after paying all capital expenditure.

The Depreciation is already adjusted in the Cash Flow from operating activities.

Free Cash Flow = Cash Flow from operating activities - Dividend payment - Capital expenditure

Free Cash Flow = $335,000 - $60,000 - $110,000 = $165,000

Current and Long term liabilities has nothing to do in free cash flow calculations.

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3 years ago
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6 0
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What is one major disadvantage of a capital formation strategy that focuses only on high risk investments
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It increases the chance that the investment will lose all value.

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8 0
2 years ago
At December 31, 2013, before any year-end adjustments, Macarty Company's Prepaid Insurance account had a balance of $2,700. It w
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4 0
3 years ago
Fresh Baked Goods has 36,800 shares of stock outstanding at a market price of $24.91 per share. What will be the price per share
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Answer:

$23.50 per share

Explanation:

The computation of the price per share after considering the stock dividend for the 6% is shown below:

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