Answer:
$68,460
Explanation:
The computation of the firm tax payment is shown below:
= (Sales - cost of goods sold - operating expenses - depreciation expense + dividend income - interest payment) × tax rate
= ($3,600,000 - $2,300,000 - $840,000 - $114,000 + $30,000 - $50,000) × 21%
= $326,000 × 21%
= $68,460
The interest payment is
= $625,000 × 8%
= $50,000
The tax rate of the corporation is 21% and the same is applied in the above calculation
Note: This is the answer but the same is not provided in the given options
Answer:
independent retailer, corporate chain, and contractual systems
Answer:
The new market size in sales value is 367,500
Explanation:
Answer:
b. Very often, a company's stock price will rise when it announces that it plans to commence a share repurchase program. Such an announcement could lead to a stock price decline, but this does not normally happen.
Explanation:
Companies issue shares when they are seeking for more funds to run their business. Shares issued become part of the owner equity of the company given out.
When the company wants to reduce its outstanding shares it buys back its shares (repurchase).
When repurchase happens price goes up as this indicates the company is doing well and is not in need of extra funds to run its operations.
The confidence boost increases price.
It is rare for such announcement to cause a fall in share price, unless some negative information of the companie's performance is available.
Answer:
b. Lower Higher
Explanation:
As non interest bearing notes are issued on deep discounted value. The face value of the note is discounted to calculate the cash receipt from the issuance. So, the cash received will be higher than the face value of the note.
If the non interest bearing note is issued on a discounted value the effective interest rate will be higher than the discount rate of the bond because the investor demands the required rate of return which is used to discount and calculating effective rate using discounted value will result the higher rate.
