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kenny6666 [7]
3 years ago
6

416,000 people each receive an average refund of $3,600, based on an interest rate of 3 percent, what would be the lost annual i

ncome from savings on those refunds
Business
1 answer:
victus00 [196]3 years ago
6 0

Answer:

$44,928,000

Explanation:

The fact that 416,000 received a refund of $3,600 each means that the tax authority would lose the interest income that could have been generated on the total refund amount based on a 3% interest rate of return.

Lost annual income=number of people who got refund*average refund per person*interest rate of return

number of people who got refund=416000

average refund per person=$3,600

the interest rate of return=3%

Lost annual income=416,000*$3,600*3%

Lost annual income=$44,928,000  

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You are given the following information concerning Around Town Tours:Debt: 7,500, 6.8 percent coupon bonds outstanding, with 11
gtnhenbr [62]

Answer:

9.0%

Explanation:

Calculation to determine the WACC for this firm

First step

Common stock=284,000 × $68

Common stock= $19,312,000

Second step is to calculate the Preferred stock

Preferred stock=9,000 × $88

Preferred stock= $792,000

Debt= 7,500 × .979 × $1,000

Debt = $7,342,500

Value = $19,312,000 + 792,000 + $7,342,500

Value= $27,446,500

Second step

RE = .041 + 1.04(.146-.041)

RE= .1502

RE = ($2.62 /$68) + .025

RE= .0635

Average RE = (.1502+ .0635)/2

Average RE = .1069

RP = $8/$88

RP = .0909

Fourth step

$979 = [(.068 × $1,000) / 2] × ({1- 1 / [1 + (r/ 2)]22} / (r / 2)) + $1,000 / [1 + (r / 2)]22

r = 7.08 %

Now let calculate the WACC

WACC = ($19,312,000/$27,446,500)(.1069) + ($792,000/$27,446,500)(.0909) + ($7,342,500/$27,446,500)(.0708)(1 -.34)

WACC= .090*100

WACC=9.0 %

Therefore the WACC for this firm is 9.0%

7 0
3 years ago
Which agricultural system trapped many southern blacks in a cycle of debt and poverty despite their hard work?
Citrus2011 [14]

Answer:

sharecropping

Explanation:

Sharecropping is a system of tenancy agriculture . In it a landowner gives a portion of his land to  a labour for the purpose of raising crop . In return , he gets a share of crop raised by him for free.

After the civil war , former slaves were in search of jobs . Due to depression and absence of credit system ,they went into this deal of sharecropping with whites . They also borrowed heavily for getting seeds and fertilizer. Landlords charged high interest rate for that which led them to debt-trap. Landowner also put condition like selling the yield on  their condition  at pre-specified cheap price.

7 0
3 years ago
Rudyard Corporation had 240,000 shares of common stock and 24,000 shares of 6%, $100 par convertible preferred stock outstanding
defon

Answer:

$1.90 per share

Explanation:

The computation of the diluted earning per share is shown below:

Diluted earning per share = Net income ÷ Weighted number of outstanding shares

where,

Net income is $680,000

And, the Weighted number of outstanding shares is

= 240,000 + 24,000 × 5

= 240,000 + 120,000

= 360,000 shares

So, the diluted EPS is

= $680,000 ÷ 360,000 shares

= $1.90 per share

We simply applied the above formula

8 0
3 years ago
Which of the following is not an example of a significant noncash transaction? Conversion of bonds into common stock. Sale of pl
Lostsunrise [7]

Answer:

Sale of plant assets.  If the company<u> sales an equipment it will receive cash </u>for it. We are not given with any information of this transaction not being in cash, so we should assume it was a sale in cash or cash equivalent.

Explanation:

<u>Conversion of bonds into common stock.</u> The bonds, which are outstanding and represent a promise to pay, are converted into common stock, this transaction doesn't involve cash.

<u>Issuance of common stock to purchase land. </u>The land is acquire in exchange of common stock, the company is not using cash. the owner of the land can later sold the stock to a third party but it won't affect the cash flow of the company.

<u>Issuance of debt to purchase equipment </u>Like singing a note to purchase a machine, no cash is involve.

3 0
3 years ago
The charts that are helpful in making comparisons between categorical variables are a. bar charts and column charts. b. scatter
saul85 [17]
The answer (A)

Bar charts and Column charts
5 0
3 years ago
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