If you were starting a company, what would be included in your social

You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a $0.75 per share

telo118 [61]

Answer:

The answer is: After-tax rate of return = 9.8% .

Explanation:

Please find the calculations which are shown in details as below:

Pre-tax dividend earning is $0.75, Tax rate on ordinary income is 28% => After-tax dividend earning = 0.75 x (1 - 28%) = $0.54;

Pre-tax capitals gain is $3 ( that is, $33 -$30), tax rate on capital gains is 20% => After-tax capital gains = 3 x ( 1 - 20%) = $2.4 ;

=> Total after-tax return = After-tax capital gains + After-tax dividend earning = 2.4 + 0.54 = $2.94 .

Thus, in percentage term, after-tax rate of return is 2.94/30 = 9.8%.

4 0

4 years ago

Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $290,400 and the

timurjin [86]

Answer:

$53,240

Explanation:

We know that,

Break even point = Fixed cost ÷ contribution margin ratio

$290,400 = Fixed cost ÷ 55%

So, the fixed cost = $290,400 × 55% = $159,720

As the variable expense is 45% and we assume the sales is 100%, so the contribution ratio would be 100% - 45% = 55%

Now the margin of safety equal to

= (Expected sales - break even sales) ÷ (expected sales) × 100

25% = (Expected sales - $290,400) ÷ (expected sales) × 100

25% Sales = (Expected sales - $290,400)

So, the expected sales would be

= $290,400 ÷ 75%

= $387,200

Now the actual profit equals to

= Sales - variable expenses - fixed cost

= $387,200 - $174,240 - $159,720

= $53,240

The variable expense is computed below:

= $387,200 × 45%

= $174,240

4 0

3 years ago

______ is a form of sales promotion in which sales personnel are incentivized to expend greater effort selling a specific produc

Stella [2.4K]

Answer:

Sales Incentives

Explanation:

Sales Incentives is a form of sales promotion in which sales personnel are incentivized to expend greater effort selling a specific product or brand. When salesperson is given some kind of incentives for selling a product or service, the amount or benefit paid to him other than his fixed salary is know as Sales incentive. It is paid basically to motivate him for selling the product, or keep him motivated for selling the larger amount of products.

By using the sales incentives company cant not only increase its sales but also can compete with other companies in retail format and overall. When the particular company's sales team will be more motivated by this technique then surely they will gather more traffic towards them and then converting that traffic into sales number.

3 0

3 years ago

Your company is experiencing difficult times and must lay off 52 workers, many of whom have been with the company for a number o

AVprozaik [17]

Answer:

ethical manner

Explanation:

Ethical manner because in this particular case , the sender has to inform workers about their layoff. This is a bad news for workers. Therefore, the sender is justified in using indirect approach . However there should be a formal or official communication to the workers at a later stage.

7 0

4 years ago

Find the after-tax return to a corporation that buys a share of preferred stock at $47, sells it at year-end at $47, and receive

kipiarov [429]

Answer:

5.80%

Explanation:

Computation of after-tax return

Based on the information given the total before-tax income will be $3.

Since the firm is in the 30% tax bracket this means that the taxable income will be calculated as:

Taxable income =(0.30 ×$3)

Taxable income = $0.9

The next step is to calculate for the Taxes

The taxes will be = (0.30 ×$0.9) = $0.27

Now let calculate for the After-tax income

After-tax income = ($3 - $0.27) = 2.73

The last step is to find the After-tax rate of return using this formula

After-tax rate of return =After-tax income/Share of preferred stock

Let plug in the formula

After-tax rate of return = ($2.73/$47)

After-tax rate of return=0.058×100

After-tax rate of return = 5.80%

Therefore After-tax rate of return will be 5.80%

4 0

3 years ago