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3 years ago

Determining of property tax rate

Business

1 answer:

Kobotan [32]3 years ago

7 0

Answer:

a) We need to collect $800,000, but as uncollectible property taxes ar 3% of the levy we need to collect

800,000/(97%)=$824,742.27

Which should be collected from the value of all properties less that with exemptions. That is

$$50$

$-$10$ Government

$-$2.5$ Homestead

$-$1$ Veterans

$-$0.5$ Old age, etc.

___________

$$36$ million

The tax rate would be $\frac{824,742.27}{36,000,000} = 0.02291$ that is $22.91 per $1,000 of assessed valuations.

b) $100,000*0.02291= $2,291

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From 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would ha

soldi70 [24.7K]

Answer:

b. aggregate demand left

Explanation:

The aggregate demand is the total goods and services demanded by a country, a certain price level, in a given period of time.

The aggregate demand that can be accounted for measures exactly the same as GDP. So they are often used as synonyms.

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4 years ago

Park Corporation is planning to issue bonds with a face value of $710,000 and a coupon rate of 7.5 percent. The bonds mature in

Fudgin [204]

Answer:

Journal Entry

<u>Issuance of bond</u>

Dr. Cash $$669,387

Dr. Discount on Bond $40,613

Cr. Bond Payable $710,000

Explanation:

Price of the bond is the present value of all cash flows associated with bond.

Use following formula to calculate the issuance price f the bond

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

As per given data

Face Value = $710,000

Coupon payment = $710,000 x 7.5% x 6/12 = $26,625 semiannually

Number of periods = n = 8 years x 2 period per year = 16 period s

Market interest rate = 8.5% annually = 8.5% / 2 = 4.25% semiannually

PLacing values in the formula

Price of the Bond = $26,625 x [ ( 1 - ( 1 + 4.25% )^-16 ) / 4.25% ] + [ $710,000 / ( 1 + 4.25% )^16 ]

Price of the Bond = $304,598.24 + $364,788.66 = $669,386.90 = $669,387

Discount on the bond = $710,000- $669,387 = $40,613

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4 years ago

In order to remain competitive in the contemporary business environment, several firms have started training their employees to

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Answer:

A.There has been a renewed emphasis on integrative thinking and solving problems cross-functionally.

Explanation:

In order to live competing in the present marketing situation, various firms have commenced preparing their employees to hinder viewing obstacles as strictly operative, an accounting problem, or a marketing obstacle, concerning example, there has been a restored emphasis on integrative reasoning as well as working problem cross-functionally this trend explains concerning strategic management. Basically, as we know that strategic management is the ongoing planning, analysis, monitoring as well as evaluation of all that is essential for an association to meet its aims as well as objectives.

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4 years ago

Which of the following is an example of the law of diminishing marginal returns? A. Holding capital constant, when the amount

Irina-Kira [14]

Answer:

The correct answer is option A.

Explanation:

The law of diminishing returns states that as we go on employing more and more unit of input while keeping other inputs constant, the return from each additional unit of input will go on declining.

This means that the output produced from each additional unit of input will go on declining.

Here, as capital is kept constant and labor is increased by a unit, the output at first increases by 5 units from 20 to 25. But later when input is again increased by a unit, the output increase by only 3 units from 25 to 28.

This shows the law of diminishing marginal returns where the marginal returns from a unit of labor is declining.

3 0

3 years ago

Poly's Parrot Shops has found that its cost of common equity capital is 17 percent. It has 7-year maturity semiannual bonds outs

Anestetic [448]

Answer:

13.35%

Explanation:

The computation of the after-tax weighted average cost of capital is shown below:

Weighted average cost of capital is

= Weight of equity × Cost of equity + weight of debt × after cost of debt

where,

Weight of equity = $120,000,000 ÷ $200,000,000 = 0.60

Cost of equity = 17%

Weight of debt = $80,000,000 ÷ $200,000,000 = 0.40

And, after cost of debt is come from applying the rate formula which is shown in the attached spreadsheet i.e 12.13%

So after tax it is

= 12.13% × (1 - 0.35)

= 12.13% × 0.65

= 7.8845%

So, the WACC is

= 0.60 × 17% + 0.40 × 7.8845%

= 10.2% + 3.1538%

= 13.35%

7 0

4 years ago