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Artist 52 [7]
2 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]2 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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Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
inna [77]

Answer:

From maintenance to department B will be allocated 85,333 dollars

Explanation:

We distribute maintenance over personnel and operating and then,

we distributed the accumulated in personnel over the operating department:

\left[\begin{array}{cccccc}&Maintenance&Personnel&Dep A&Deb B\\$maintenance-hours&&800&960&640\\$employes&&&160&480\\$Direct \: Cost&320,000&80,000&160,000&240,000\\$Allocate A&-320,000&106,667&128,000&85,333\\$Subtotal&&186,667&288,000&325,333\\$Allocate J&&-186,667&46,667&140,000\\$Total&&&334,667&465,333\\\end{array}\right]

<em><u>For the given question it would be:</u></em>

total maintenance-hours: 800  + 960 + 640 = 2,400

<u>allocation of maintenance:</u>

320,000 x   640/2400 = 85,333

4 0
3 years ago
Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in
lesya692 [45]

Answer:

Federal tax = $10,856.25

Explanation:

Given:

Tax rate schedule for year 2014.

Income between  $36,900 - $89,350

$5,081.25 + 25% over $36,900

Total income = $60,000

Computation:

So,Income between  $36,900 - $89,350

Federal tax = $5,081.25 + 25% ($60,000 - $36,900)

Federal tax = $5,081.25 + 25% ($23,100)

Federal tax = $5,081.25 + 0.25 ($23,100)

Federal tax = $5,081.25 + $5,775

Federal tax = $10,856.25

4 0
3 years ago
You have just taken over your family’s printing business. It is important to you that the business has a positive impact on your
Nimfa-mama [501]

Answer:

a. Some of your printing processes utilize chemicals that require press operators to wear masks during production.<u> </u><u>Health and safety risks.</u>

Those chemicals present a health and safety risk because a person can get sick if they do not wear the masks.

b. Because of increased profits in the last 5 years, you have been able to increase staffing levels by 25%. <u>Increase employment.</u>

<u></u>

c. The business is a member of the local Chamber of Commerce and supports local community charities. <u>Improve the quality of life</u>

The business supports local charities which shows that it aims to improve the quality of life.

<u></u>

d. The business is the only one in town to offer 48-hour turnaround on printing projects. <u>Offer valuable products</u>

The business is the only one offering this service so it is offering valuable services.

<u></u>

e. The business uses ink that is shipped in bulky, non-recyclable ink containers. <u>Environment damage</u>

Ink is bulky and containers are non-recyclable. This will cause environmental damage.

5 0
3 years ago
Sweet Treats sells ice cream cones for​ $4.25 per customer. Variable costs are​ $1.25 per cone. Fixed costs are​ $3,300 per mont
ziro4ka [17]

Answer:

Company's contribution margin​ ratio is <u>70.59%</u>

3 0
3 years ago
In which market does a company's initial public offering (IPO) occur?
kirza4 [7]

Answer:

A primary

Explanation:

The operations of the capital markets are categorized into primary and secondary markets. The primary market is where enterprises sell new bonds and equity to the public for the first time.  A good example is the initial public offering (IPO). An IPO is a process of issuing out new shares of a corporation to the public for the first time.

The primary market is for new shares, bonds, and other money market securities issued for sale for the first time.

7 0
3 years ago
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