Answer:
B) $1,260,000
Explanation:
The computation of the value of the depreciation tax shield is shown below:
= Annual depreciation expense × marginal corporate tax rate
= $3,600,000 × 35%
= $1,260,000
Simply we multiplied the annual depreciation expense with the marginal corporate tax rate, not the average corporate tax rate so that depreciation tax shield will come.
Answer:
The correct option is E ,all investors are fully informed,are rational and are mean-variance optimizers
Explanation:
The Capital Asset Pricing Model is used in analyzing investment opportunities to determine the required rate of return for a given level of risk.The higher the risk the higher the investor's return as a compensation for taking higher risk.
The model assumes that there is free access to information,hence investors are well informed.
They are also rational since they demand for return depending on the risk to be taken.
Finally,they try as much as possible to put invest where it is most profitable,hence they mean-variance optimizers.
Answer:
The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.
Explanation:
This can be calculated as follows:
Interest income = Carrying value of the bond * Yield to maturity…………….. (1)
Where;
Carrying value of the bond = $13,410
Yield to maturity = 3.4%
Substituting the values into equation (1), we have:
Interest income = $13,410 * 3.4% = $455.94
Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.
The property was listed at $155,000. an offer was made for $140,000 which the seller rejected, but countered for $147,500, which the seller accepted. the commission rate is 5% and the salesperson is to receive 60% of the commission on the sale. the commission of the salesperson is $4,425.
Income fee rates range from five percent to as a good deal as 50%, but most corporations pay among 20-30%. To locate the proper suit that aligns together with your sales goals, start by means of estimating how awful a lot it would price to rent humans under specific sales fee systems each for a complete-time team of workers and independent contractors. it could be calculated with the following equation fee = total sales fee rate. So if a sales clerk sells a total of $2,000 of product and gets 5% in commission, they make a hundred dollars.
One of the simplest and maximum normally used sales fee systems is variable pay as a percent of a single sale's revenue. underneath this incentive shape, reps earn a flat percent for every sale. for instance, consider your agency selling a product for one lakh dollars with a fee charge of five percent. In an instant fee plan, the simplest earnings income representatives earn comes directly from their sales.
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Answer:
D) have customers who operate in many different parts of the country.
Explanation:
A lockbox is basically a bank mailing address where a company's clients can send their payments to. It is similar to mailbox that receives letters, only that this one receives checks and cash. The bank is in charge of opening the lockbox and depositing the cash and checks to the company's account, and reporting the information.