Imagine you are writing a plan for how to move toward a career. Which of these pieces of information do you think

Incite co. has a 36 percent tax rate. its total interest payment for the year just ended was $35 million. what is the interest t

butalik [34]

<span>Tax shield is the saving in tax due to exemption of tax on interest expense = interest expense * tax rate = $35 million * 36% = $ 12.6 million</span>

4 0

3 years ago

AK Inc. is paying 5% coupon rate for its bondholders over the next 8 years. Your required rate of return is 7 percent, how much

ratelena [41]

Answer: $880.57

Explanation:

Assuming Par value of bond is $1,000.

Value of bond = (Coupon * Present value interest factor of annuity, no. years, required return) + Par Value/ (1 + required return)^ no. of years

Coupon = 5% * 1,000 = $50

Value of bond = (50 * 5.9713) + 1,000 / (1 + 7%)⁸

= ‭298.565‬ + 582

= $880.57

6 0

3 years ago

Below are the account balances for a company at the end of December. Accounts Balances Cash $ 4,900 Salaries expense 1,950 Accou

Alexus [3.1K]

Answer:

See below

Explanation:

The preparation of the end December income statement for the company is seen below;

Service revenue

$8,800

Less:

Salaries expenses

($1,950)

Utilities expenses

($1,000)

Net income

$5,850

5 0

2 years ago

The manager at Vertical Wire Productions reported total sales revenue of $800,000. The variable expenses were $600,000, and ther

Brilliant_brown [7]

Answer:

$BEP_{dollars} = 500,000$

Explanation:

<u>The first step</u> will be get the contribtuion margin:

$Sales\: Revenue - Variable \:Cost = Contribution \:Margin$

800,000 - 6000,000 = 200,000

This is the amount after variables cost used to pay the fixed cost and make a gain.

Second, we calcualte the contribution margin ratio

$\frac{Contribution \:Margin}{Sales\: Revenue} = Contribution\: Margin\: Ratio$

200,000/800,000 = 0.25

Per dollar of sales 25 cents are available to pay the fixed cost.

Now, we calculate the break even point in dollars

$\frac{Fixed\:Cost}{Contribution\: Margin \:Ratio} = Break\: Even\: Point_{dollars}$

$\frac{125,000}{.025} = 500,000$

5 0

3 years ago

sarah has two dependent children who attend sun valley day care while she is at work. she will claim a $1,200 credit for child a

castortr0y [4]

If Sarah is in the income tax band that has a marginal rate of 24%, the amount of the deduction that must be taken in order to generate a tax advantage that is equivalent to that provided by the child care credit is x = 5000.

This is further explained below.

<h3> What amount of deduction is necessary to provide a tax benefit that is equal to that provided by the child care credit if Sarah is in the 24% marginal income tax bracket?</h3>

Generally, The proportion of an individual's income that must be paid in taxes is referred to as that person's marginal tax rate.

The average tax burden may be conceptualized as the entire tax burden expressed as a proportion of the income that is produced.

Tax: Taxes are payments to the government that is required of all citizens, whether they be people or companies.

In conclusion,

Available deduction = 1200

Deduction rate = 0.24

Amount of money needed for an investment

x= 1200/0.24

x= 5000