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3 years ago

Compute the fica taxes and the employer's fica taxes

Business

1 answer:

Vikentia [17]3 years ago

6 0

Answer:

Explanation:

Employers and employees split the tax. For both of them, the current Social Security and Medicare tax rates are 6.2% and 1.45%, respectively. So each party pays 7.65% of their income, for a total FICA contribution of 15.3%. To calculate your FICA tax burden, you can multiply your gross pay by 7.65%.

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Bond A and Bond B both have 16 years to maturity and a face value of $1,000. Bond A has a 2.50% coupon while Bond B has a 5.5% c

r-ruslan [8.4K]

Answer:

Bond's A price will decrease by 27.09%

Bond's B price will decrease by 24.25%

Explanation:

Bond's A current price: should be 1,000, since he market price = coupon rate

Bond's B current price: using an excel spreadsheet we can calculate the net resent value: =NPV(2.5%,55... fifteen times,1055) = $1,391.65

If the market rate increases to 5%

Bond's A current price: using an excel spreadsheet we can calculate the net resent value: =NPV(5%,25... fifteen times,1025) = $729.06

Bond's B current price: using an excel spreadsheet we can calculate the net resent value: =NPV(5%,55... fifteen times,1055) = $1,054.19

Bond's A price will decrease by: [($729.06 - $1,000) / $1,000] x 100 = -27.09%

Bond's B price will decrease by: [($1,054.19 - $1,391.65) / $1,391.65] x 100 = -24.25%

3 0

3 years ago

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a

PilotLPTM [1.2K]

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

7 0

2 years ago

Gomez runs a small pottery firm. He hires one helper at $15,000 per year, pays annual rent of $6,500 for his shop, and spends $2

Nady [450]

Answer

Gomez's business accounting profit amounted to $37500 while economic profit is $6000

Accounting profit is simply deducting explicit costs from revenue.Explicit costs are costs that require actual cash flow from the entity.

Economic profit on the other hand is calculated by deducting both explicit and implicit costs from revenue.

Implicit costs are costs relating to alternative opportunities forgone.

Explanation:

Both accounting and economic profits are highlighted below:

Accounting profit=Total revenue-explicit costs

Revenue $82,000

Helper's wages ($15,000)

Rent ($6,500)

Materials ($23,000)

Accounting profit $37,500

Economic profit =Revenue -explicit costs-implicit costs

Revenue $82,000

Helper's wages ($15,000)

Rent ($6,500)

Materials ($23,000)

Return lost money invested ($6,000)

Lost income from porter's offer ($20,500)

Entrepreneur's talent ($5,000)

Economic profit = $6,000

8 0

3 years ago

According to the article by Brooks, successful entrepreneurs are most interested in

valentina_108 [34]

<span>personal fulfillment.</span>

8 0

3 years ago

The contribution margin ratio of Kuck Corporation's only product is 75%. The company's monthly fixed expense is $456,000 and the

Anna35 [415]

Answer:

$664,000

Explanation:

Kuck corporation has a contribution margin ratio of 75%

= 75/100

= 0.75

The company's monthly fixed expense is $456,000

The company's monthly target profit is $42,000

Therefore, the dollar sales to reach the target profit for the company can be calculated as follows

= Target profit+fixed expense/contribution margin ratio

= $42,000+$456,000/0.75

= $498,000/0.75

= $664,000

Hence the dollar sales to attain the company's target profit is $664,000

7 0

3 years ago

Compute the fica taxes and the employer's fica taxes ​

Compute the fica taxes and the employer's fica taxes