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Artist 52 [7]
3 years ago
11

Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company. The before-tax dividend yi

eld on the preferred stock is 6.00%. What is the company's after-tax return on the preferred, assuming a 70% dividend exclusion? (Round your final answer to two decimal places.)
Business
1 answer:
Leni [432]3 years ago
8 0

Answer:

5.37%

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the company’s after tax return on preferred by using following formula:-

Company’s After Tax Return = Before Tax Dividend Yield Rate on Preferred Stock × [1 - (1 - Dividend Exclusive) × (Tax Rate)]

= 6% × [1 - (1 - 70%) × (35%)]

= 0.06 × [1 - (1 - 0.70) × (0.35)]

= 0.06 × [1 - (0.30) × (0.35)]

= 0.06 × (1 - 0.105)

= 0.0537

= 5.37%

We simply applied the above formula to determine the company after tax return

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g Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool To
iogann1982 [59]

Answer: $2.81 per machine hour

Explanation:

Wages and salaries $ 423,000

Activity cost pools 10%

Allocated amount = 10% of $423000

= 0.1 × 423000

= $42,300

Depreciation = $112,000

Activity cost pools 10%

Allocated amount = 10% of 112,000

= 0.1 × 112000

= $11200

Occupancy 154,000

Activity cost pools 20%

Allocated amount = 20% of 154000

= 0.2 × 154000

= $30800

Total allocated amount = $42300 + $11200 + $30800 = $84300

The cost hour is the machine hour which is 30,000

Rate per machine hour = total allocated amount/machine hour

= 84300/30000

= $2.81 per machine hour

6 0
3 years ago
On January 1, Big Company acquires all of the common stock of Little Company by issuing 400,000 shares of $1 par value stock wit
DENIUS [597]

Answer:

$7,176,000

Explanation:

We will calculate the sbsidiary net gain and add it to the firm income to get the consolidated net income:

Little income                                                864,000

amortization on acquisition investment  <u>  (48,000)  </u>

net gain on subsidiary                                816,000

Big income 6,360,000

big income + income from subsidiary = 6,360,000 + 816,000 = 7,176,000

This will be the consolidated net income.

The dividends do not impact the net income.

4 0
3 years ago
What role does spirituality and/or faith play in your life? How can you incorporate mindfulness techniques into your day?
Sergio039 [100]

Spirituality acknowledges that there is more to life than what you do on a daily basis. It can help you realise your life's bigger purpose and free you from dependence on material possessions. Meditation, spiritual reading, practising gratitude, spending time in nature, and mindful breathing are some of the attentive strategies I employ to become more spiritual and enhance my lifestyle.

Spirituality is a broad concept that allows for a range of opinions. It typically involves a search for meaning in life and, generally, a sense of connectedness to something bigger than ourselves. Whether our spiritual activities are based in religion, nature, art, or something else entirely, spirituality may be a guiding force because it gives us a reason for being. This guiding light improves our compassion for ourselves and others while also assisting us in achieving serenity, which is one of the many ways it promotes our mental health.

Volunteerism, social duty, optimism, helping others, connection with others, feeling like you belong/are a part of a community, and love of oneself/reason to take care of oneself are a few examples.

Additionally, spirituality can be employed as a coping mechanism for uncertainty or transition. Everyone should make an effort to meditate for at least a minute in the morning. Be open to signs from the universe at all times.

Learn more about Meditation here brainly.com/question/19069324

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4 0
2 years ago
A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What cha
kifflom [539]

Answer: Increased payables and decreased bank loans

Explanation:

It should be noted that 3/10, net 30 simply means when customer pays in 10 days, such person will get a 3% discount, if not the person will have to pay in full within the 30 days.

On the other hand, 2/20, net 90 means that when customer pays in 20 days, such person will get a 2% discount, if not the person will have to pay in full within the 90 days.

Therefore, the change that this will lead to on the balance sheets of its customers will be an increased payables as there'll be more time to make payment for the goods and decreased bank loans.

3 0
3 years ago
"A client, age 74 has $314,000 in her Traditional IRA. She is required to take an $11,000 RMD for this year. She does not need t
Schach [20]

Answer:

This action will result in her safe-guiding her investment portfolio in equities. For example, in a constant dollar plan, an investor keeps a constant dollar amount of the portfolio in equity securities.<em> If the equities' market value rises, the excess is transferred to fixed-income securities.</em>

Explanation:

4 0
3 years ago
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