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guajiro [1.7K]
3 years ago
8

Alamo Inc. had $300 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $30 mill

ion and an increase in deferred tax liabilities of $60 million. The company is subject to a tax rate of 40%. The total income tax expense for the year was:
Business
1 answer:
scoray [572]3 years ago
7 0

Answer:

$ 210 million

Explanation:

Data provided :

Taxable income for the current year = $ 300 million

Tax rate of the income  = 40%

therefore, the income tax for the current year = 0.40 × $ 300 million

or

the income tax for the current year = $ 120 million

Decrease in the deferred tax assets = $ 30 million

Increase in the deferred tax liabilities = $ 60 million

Hence,

the total income tax expense for the year

= $ 120 million + $ 30 million + $ 60 million

or

= $ 210 million

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Answer:

a) A = 4.50% and B = 2.00%

b) SD for A = 4.15 %

c) Portfolio Return = 3.0%

Explanation:

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In order to calculate the expected returns, let's categorize the given data first.

Economy        Probability      Stock A       Stock B

Booming            0.30               10%               20%

Neutral               0.30                5%                 0%

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A =   Sum of (all Probability x Stock A)

A = (0.30 x 0.10) + (0.30 x 0.05) + (0.40 x 0.00)

A = 0.045

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Return for Stock B:

B = Sum of all Probability x Stock B

B = (0.30 x 0.20) + (0.30 x 0.00) + (0.40 x -0.10)

B = 0.002

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<em>b) Standard Deviation /Risk for Stock A:</em>

SD for A = Sum (Square Root (Probability*(Stock A Return - Expected Return of Stock A)²) )

SD for A = \sqrt{0.30*(0.10-0.045)^2 + 0.30*(0.05-0.045)^2+0.40*(0.00-0.045)^2}

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<u><em>SD for A = 4.15%</em></u>

c) Portfolio Return Given that:

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Stock A                          4000              0.4               4.50%

Stock B                          6000             0.6                 2.0%

                                      10000

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                          = (0.4 x 0.045) + (0.6 x 0.02)

                          = 0.03

<em><u>Portfolio Return = 3%</u></em>

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The JPY/AUD spot exchange rate is 82.42, the JPY interest rate is 0.15%, and the AUD interest rate is 4.95%. If the interest rat
defon

Answer:

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A group of researchers wanted to determine if people will eat more food in a room with red paint and red decorations than in a r
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I guess the correct answer is the color of the decorations in the room

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