The total amount of taxes that the company will pay will be calculated as under -
Total taxes paid = (Taxes on income) + (Taxes on dividends)
Total taxes paid = ($ 9.50 X 39%) + ($ 4 X 10%)
Total taxes paid = $ 3.705 + $ 0.4 = $ 4.105 or $ 4.11
Answer: The answers are explained below.
Explanation:
• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.
• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.
• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.
• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.
• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.
• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.
• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.
Question Completion with Options:
a. Susan cannot deduct the $80,000 loss from the restaurant because she is not a material participant.
b. Susan can offset the $80,000 loss against the $150,000 of income from the retail store.
c. Susan will not be able to deduct any losses from the restaurant until she has been retired for at least three years.
d. Assuming Susan continues to hold the interest in the restaurant, she will always treat the losses as active.
Answer:
Susan
b. Susan can offset the $80,000 loss against the $150,000 of income from the retail store.
Explanation:
Susan can offset the $80,000 loss from the restaurant business against the income from the retail store because she has been an active and material participant in both businesses. For the past 20 years, she had participated materially in the restaurant, only just retiring this year. At least, she has passed the material participant test, number 5.
Tangible assets are first recorded at costs to acquire them for use.
- Tangible assets are fixed assets which is referred to as the physical assets which a company/Buisness owns to carry out its daily activities in order to create profit .
- They include<em> investments, cash, inventory, vehicles, office equipment, buildings,machines, </em>etc
Tangible assets are very important to businesses as they
- Help in business operations to provide goods and services
- Serve as collateral for loans
- In case of emergency, they can generate cash
Tangible assets are first recorded in the balance sheet as costs to acquire them for use.
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Answer:a name, symbol, letter, or word legally registered to distinguish one company's product from any others and ensure its exclusive use
Explanation:
