Answer:
The correct answer to the problem is 7.728%
Explanation:
Lucas marginal tax rate = 32 percent
Tax rate on dividends = 16 percent
Dividend yield of a dividend-paying stock (with no growth potential) = 9.20 percent.
To determine the interest rate a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash flow perspective =
Dividend yield multiplied by ( 1- tax rate on dividends)
= 9.20% × (1 - 16%)
= 0.092 × (1 - 0.16)
= 0.092 × 0.84
= 7.728%
Answer:
The multiple choices are:
a. $200 Million
b. $50 Million
c. $1.4 Billion
d. $100 Million
The correct option is A,$200 million
Explanation:
The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:
Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities
increase in cash in the year=$325+($500-$100)-$600=$125 million
cash at the end of the year=$125
+$75=$200 million
Answer:
The best depiction of the information level given to a department manager versus that reported to a company vice-president is:
Department Manager Company Vice-President
B. Somewhat detailed Somewhat summarized
Explanation:
At the operational level of the organization, the information requirement is for detailed data to help the department manager act on operational decisions. At the tactical level where the vice-president operates, the information requirement is for data that is somewhat summarized but not too detailed. The highest level of the organizational hierarchy is the strategic level, where information requirement concentrates on detailed reports and not detailed data but highly summarized data.
Answer; True
Explanation;
When a company has excess capacity, it means that potentially it could produce more than it is producing at the moment. As this potential already takes into account the fixed costs, this means that given the fixed costs it currently has, more goods could be produced on those same fixed costs and they wouldn't increase.
Increasing production level would therefore only increase variable costs which rise whenever production rises as they are directly related to the production of goods.
