Answer: $3,000,000
Explanation:
From the question, we are informed that a company's capital budget is expected to be $5,000,000 and that the company's target capital structure is 70 percent debt and 30 percent equity.
Equity = 30% × $5,000,000
= 30/100 × $5,000,000
= 0.3 × $5,000,000
= $1,500,000
Debt = 70% × $5,000,000
= 70/100 × $5,000,000
= 0.7 × $5,000,000
= $3,500,000
We are further told that the company's net income is $4,500,000 and since we be calculated the equity that will be needed to finance the capital budget as $1,500,000. Therefore, portion of its net income should it pay out as dividends this year will be:
= $4,500,000 - $1,500,000
= $3,000,000
Answer:
At the end of the current year, the deferred tax liability related to the excess depreciation will be 144 million
Explanation:
In order to calculate At the end of the current year, the deferred tax liability related to the excess depreciation we would have to use the following formula:
Deferred tax liability = ($160 million * 25%) + ($160 million * 30%) + ($160 million * 35%)
Deferred tax liability =$40 million + $48 million + $56 million
Deferred tax liability = $144 million
At the end of the current year, the deferred tax liability related to the excess depreciation will be 144 million
Answer:
The correct answer is: Moral awareness.
Explanation:
Moral awareness refers to the set of actions individuals take driven by values and beliefs that drive them not to only think about themselves but also in the consequences on others. In business, companies need to consider what the impact of their actions is with their surrounding environment and their inner circle -employees.
Answer:
A loss of 69%
Explanation:
Price per share $100
Equity invested $10,000
Funds taken from broker $10,000 at an Interest rate 9.00%
Total investment $20,000
Price change 30.00% less
Margin required 30.00%
Total shares purchased from investing = 200 shares
The shares decrease in value by 30%: $20,000 * 0.30 = $6,000.
You pay interest of = $10,000 * 0.09 = $900.
The rate of return will be:
"$6,000 － $900" /"$10,000" = - 0.69 = - 69%
Answer:
$826.95
Explanation:
To determine the price of Oil Wells' bonds, we can use the following formula:
bond price = semiannual coupon x [(1 - {1 / [1 + (maturity yield / 2)](years × 2)}) / (.0694 / 2)] + face value / [1 + (maturity yield / 2)](years × 2)
Bond price = $28.25 × [(1 - {1 / [1 + (.0694 / 2)](7 × 2)}) / (.0694 / 2)] + $1,000 / [1 + (.0694 / 2)](7 × 2)
Bond price = $757,92 + $69.03 = $826.95
