Answer:
$16,296
Explanation:
Qualified residence interest payments = $22,200
Principal payments = $1,200
First year of ownership = $23,400
The annual after-tax cost of financing the purchase of the home will be
:
= Installment - tax saving
= $(23,400 - $7,104)
= $16,296
Note:
Tax Saving = 32 % of Interest amount
= 32% × 22,200
= $7,104
Answer: The correct answer is "achieve time, quality, or cost-reduction".
Explanation: Generally, the objective sought by organizations when committing resources for the development of multifunctional equipment is to meet the objectives of time, quality or cost reduction in a variety of tasks.
Answer: 12.29%
Explanation:
Municipal bonds are tax exempt and so are attractive for this reason. If John is to be indifferent between the two, the corporate bond would have to offer a return that when adjusted for tax, will give the same return as the municipal bond.
Assume that return is x;
x * ( 1 - 17%) = 10.2%
0.83x = 10.2%
x = 10.2%/0.83
x = 12.29%
Answer:
Option D is correct,$1,950,000
Explanation:
In order to compute the closing balance of retained earnings, the preferred shares dividends for prior and current years as well as the common stock dividend must be deducted from net income before adding the remnant to the opening retained earnings:
Net income $870,000
Preferred dividend prior year($100*20000*8%) ($160,000)
Preferred dividend current year($100*20000*8%) ($160,000)
Common stock dividend($2*100,000) ($200,000)
net income after dividends $350,000
Closing retained earnings=$1600,000+$350,000
=$1,950,000
First of all, let us calculate the annual gains: they are 80000-60000=20000$. In three years, the profit will be 3*20000=60000$. Hence, the break-even investment would be 60000$. For a year after that, the profit will be 20000$; hence the return on investment would be 20000/60000=33,33% per year. After 6 years, the investment would have yielded a 100% profit (return on investment).
