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scoray [572]
2 years ago
15

Trent Inc. needs an additional worker on a multiyear project. It could hire an employee for a $88,000 annual salary. Alternative

ly, it could engage an independent contractor for a $95,000 annual fee. Trent's income tax rate is 21 percent. Required: Compute the annual after-tax cost of each option and indicate which minimizes the after-tax cost of obtaining the worker
Business
1 answer:
ryzh [129]2 years ago
3 0

Answer: The cheaper cost is to <u>hire an additional worker. </u>

Explanation:

Employee:

With an employee, Trent is going to have to pay payroll taxes.

After-tax cost of hiring employee:

= Salary * (1 + Payroll tax)

= 88,000 * ( 1 + 7.5%)

= $94,600

The subtract the income tax from this amount:

= 94,600 * ( 1 - 21%)

= $74,734

Contractor:

With a contractor, only the marginal income tax is accounted for:

= 95,000 * (1 - 21%)

= $75,050

The cheaper cost is to <u>hire an additional worker. </u>

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The Delta Manufacturing Company has a marginal tax rate of 21 %. The last dividend paid by Delta was $2.60. The expected long-ru
Musya8 [376]

Answer:

The stock price is 38.63

Explanation:

We use the gordon model to calculate the horizon value and with htat the value of the stock:

\frac{D_1}{r-g} = PV\\\frac{D_0(1+g)}{r-g} = PV\\

D1 = 2.60 x 1.04 = 2.704

rate of return 11% = 0.11

grow rate = 4% = 0.04

\frac{2.704}{0.11-0.04} = PV\\

P0 = 38.62857143

The taxes should be ignored as the gordon model do not include them in the calculations

5 0
3 years ago
Price Per Unit Quantity Supplied Quantity Demanded $10 100 295 11 150 275 12 190 250 13 220 220 14 245 180 15 265 135 If a techn
Contact [7]

Answer:

$12

Explanation:

Equilibrium price is price at the point where quantity supplied equals the quantity demanded.

Please check the attached image for a table showing how equilibrium was found

6 0
3 years ago
A seller (or provider) of goods or services to a business organization, usually a manufacturer or wholesaler, is known as a:
Hatshy [7]
He is known as a VENDOR. A vendor is a part of the supply chain, he makes goods and services available to companies and consumers. Companies typically provide a vendor with purchase order which clearly states the products that the company wants to buy, the number of units needed, the price, the delivery date and other specifics.
5 0
3 years ago
Which of the following is not an advantage of owning mutual funds? A. All of the options are advantages of mutual funds. B. They
weeeeeb [17]

(C) They treat income as 'passed through' to the investor for tax purposes.

<h3>What are mutual funds?</h3>
  • A mutual fund is an investment vehicle that is professionally managed and collects money from a number of investors to buy securities.
  • The phrase is frequently used in the US, Canada, and India, while open-ended investment companies in the UK and SICAVs in Europe are comparable global structures.
  • Mutual fund distributions, whether made in the form of cash payments or reinvested in additional shares, must be taxed if shares are held in a taxable account.
  • Following the end of each calendar year, the funds submit IRS Form 1099-DIV detailing distributions made to shareholders.
<h3>Who are investors?</h3>
  • A person who invests money does so in the hope of earning a profit or gaining an advantage in the future.
  • The majority of the time, the investor purchases some kind of property using these assigned funds.
<h3>What is tax?</h3>
  • Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.
  • A tax is a mandatory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national).
  • Around 3000–2800 BC, the first recorded taxation was enacted in ancient Egypt.

Therefore, "(C) They treat income as 'passed through' to the investor for tax purposes" is not the advantage of owning mutual funds.

Know more about mutual funds here:

brainly.com/question/4340765

#SPJ4

4 0
1 year ago
Microsoft and Apple are widely known as technological rivals. When one company comes out with a new laptop, the other is quick t
rewona [7]

Answer: B dominant designs

Explanation:

The dominant design in a product class is, by definition, the one that wins the allegiance of the market place, the one that competitors and innovators must adhere to if they hope to command significant market. A dominant design is often the norm within the market which creates difficulties in other similar products to compete for market share. This often creates a monopoly over alternatives, whereby the only means of competing is to imitate or expand upon the concept.

6 0
3 years ago
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