Answer:
tax expense: 34% 103,020 dollars
Explanation:
Sales 2,400,000
COGS 34% of sales<u> (816,000) </u>
Gross profit 1,584,000
other operating (1,200,000)
depreciation (80,500)
interest expense
450,000 x 9% (40,500)
gain on investment <u> 40,000 </u>
Income before taxes 303,000
tax expense: 34% 103,020
The dividends paid are not an expense or revenue for the period. is the distribution of prior period gains.
Bonds are less risky than are stocks because their return is more predictable.
Heart/Brainliest would help me react Genius rank!
Answer:
Fiduciary Duty
1. The two main duties of company directors and top managers are the duty of care and the fiduciary duty of loyalty. The fiduciary duty of loyalty requires that managers act in the best economic interest of the company without engaging in activities that give rise to personal economic conflict.
2. Gaffney did not act ethically in this case. He did not avoid conflict of interest as an officer of Chelsea Corporation.
3. Gaffney and his partners clearly breached their fiduciary duty of loyalty. Within the two years of their employment at Ideal Tape Company, they acted in their personal interest. They were using company resources to conduct researches, setting up a rival company to compete with Ideal.
Explanation:
When a fiduciary duty of loyalty is breached, the corporation can damages. The court will usually base the damages on the salaries of the officer who breached his fiduciary duty within the application period.
Answer:
6.20000%
Explanation:
The computation of the unlevered cost of capital is shown below;
Asset beta is
= (Debt × Debt beta + Equity × Equity beta) ÷ (Debt + Equity)
= (75 × 0.20 + 300 × 0.75) ÷ (75 + 300)
= 0.6400000
Now
Unlevered cost of capital is
= risk free rate + asset beta × market risk premium
= 3% + 0.6400000 × 5%
= 6.20000%
Answer:
The marginal propensity to consume is <u>92 percent</u>.
Explanation:
Marginal propensity to consume (MPC) refers to the additional expenditure on consumption by consumer as a result of an in national income.
That is, MPC is a measure of the proportion or percentage of the additional income that goes consumption expenditure.
MPC can be calculated using the following formula
MPC = ΔC / ΔY ......................................... (1)
Where;
ΔC = Change in consumption = New consumption - Old consumption = $1,168 - $800 = $368
ΔY = Change in income = New income - Old income = $1,400 - $1,000 = $400
Substituting the values into equation (1), we have:
MPC = $368 / $400 = 0.92, or 92%
Therefore, the marginal propensity to consume is <u>92 percent</u>.