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Annette [7]
2 years ago
9

Copper Corporation, a calendar year C corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for

the current year. Bronze Corporation pays Copper a dividend of $150,000. What amount of dividends received deduction may Copper claim if it owns 85% of Bronze stock (and the two corporations are members of the same affiliated group)? (Assume Copper's dividends received deduction is not limited by its taxable income.)
Business
1 answer:
Olegator [25]2 years ago
6 0

Answer:

$150,000

Explanation:

Copper Corporation

The amount of dividends received deduction will tend to depends upon the ownership percentage by the corporate shareholder.

Therefore in a situation where Copper Corporation is said to owns only 85% of what Bronze Corporation had, Copper Corporation definitely qualify for a percentage of 100 deduction or a total amount of $150,000.if we have to based on the above information given because Bronze Corporation pays Copper Corporation a dividend of $150,000.

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Sabrina, a production manager at Orrin Co., needs to measure the performance of 12 of her subordinates. She divides the number o
Tcecarenko [31]

Answer: Forced-distribution

Explanation:

The forced distribution is one of the type of method which is used by the various types of organizations or companies for the purpose of evaluating the performance of an employees by using the rating system parameter.

By using the forced distribution method the organizations are establishing the appraisal method by evaluating the productivity and the performance of an employees and it is also known as the management tool.

 According to the given question, Sabrina is the production manager at the Orrin Corporation and they needs to measure the overall performance of the subordinates so she is using the forced distribution method by dividing each employees into the different types of categories such as Exceptional, below average, Average and above average.      

 Therefore, Forced Distribution is the correct answer.  

8 0
2 years ago
Yan Yan Corp. has a $10,000 par value bond outstanding with a coupon rate of 4.8 percent paid semiannually and 22 years to matur
Shalnov [3]

Answer:

$10,856

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond.

According to given data

Face value of the bond is $10,000

Coupon payment = C = $10,000 x 4.8% = $480 annually = $240 semiannually

Number of periods = n = 22 years x 2 = 44 period

YTM =  4.2% annually = 2.1% semiannually

Price of the bond is calculated by following formula:

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

Price of the Bond = $240 x [ ( 1 - ( 1 + 2.1% )^-44 ) / 2.1% ] + [ $10,000 / ( 1 + 2.1% )^44 ]

Price of the Bond = $6,848.64 + $4007.4 = $10,856.04

4 0
2 years ago
In calculating earnings per share, companies deduct preferred dividends from net income if:
Savatey [412]

Answer: Option B

Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.

Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.

7 0
3 years ago
Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturi
Aleonysh [2.5K]

Answer:

Price of the bond = $4,122.36

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  </em>

Value of Bond = PV of interest + PV of RV  

The value of bond for Yan Yan Corp.  be worked out as follows:  

Step 1  

<em>PV of interest payments  </em>

Semi annul interest payment  

= 4.6% × 5,000 × 1/2 = 115

Semi-annual yield = 4.1%/2 = 2.05  % per six months  

Total period to maturity (in months)   = (2 × 21) = 41 periods

PV of interest =  

115  × (1- (1+0.0205)^(-21)/0.0205)=1,946.47

Step 2  

<em>PV of Redemption Value  </em>

= 5000 × (1.0205^(-41)   = 2,175.89

<em>Step 3:Price of the bond </em>

Total present Value = 1,946.47  +  2,175.89  = 4,122.36

Price of the bond = $4,122.36

 

5 0
3 years ago
If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc
Kitty [74]

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

  • an increase in inventory will result in a lower stock price
  • a decrease in the asset turnover ratio will result in a lower stock price
  • the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
4 0
3 years ago
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