Answer:
10.2%
Explanation:
Total annual dividends $2,500,000
the actual dividends received deduction is 80%, but since the question states that it is 70%, we must subtract 70% of $2,500,000 = $750,000
the company will be taxed only on $750,000 of dividends that it received:
total taxes paid = $750,000 x 34% = $255,000
effective tax rate = total taxes paid / total dividends received = $255,000 / $2,500,000 = 10.2%
Answer:
c. liquidity ratio
Explanation:
Liquidity means having cash or access to cash readily available to meet obligations to make payments.
For the purpose of ratio analysis, liquidity is measured on the assumption that the only sources of
cash available are:
Cash in hand or in the bank, plus
Current assets that will soon be converted into cash during the normal cycle of trade.
It is also assumed that the only immediate payment obligations faced by the entity are its current liabilities.
There are two ratios for measuring liquidity:
Current ratio
Quick ratio, also called the acid test ratio.
Based on the above discussion, the answer is c. liquidity ratio
Answer:
b. 11.87%
Explanation:
interest = $102,000*11%*8/12
= $7480
Effective interest rate = ($7480/($102000 - $7480))*12/8
= ($7480/94520)*12/8
= 11.87%
Answer:
Substantial performance
Explanation:
A substantial performance is described as a degree of performance of a contract which is not full and complete in performance, but which the performance is termed almost equivalent to what is expected. In substantial performance, the essential obligations of the contract have been performed but not all that is required under the contract.