Answer and Explanation:
The computation is shown below:
a. The net income is $108,000
b. The dividend for the year is $32,400
c. The total net income is
= $108,000 ÷ 0.25
= $432,000
d. And, the total dividend is
= $432,000 × 0.30
= $129,600
hence, the same would be considered and relevant too
Answer:
<em>total factory ovehead for a single unit of ding adding both, fabrication and asembly department:</em>
<em> $47.63</em>
Missing information:
Product # DLH MH
Rings 1,080 7 7
Dings 2,280 7 8
Explanation:
fabrication applies overhead based on machine hours:
85,700 expected overhead
1,080 units if Rings x 7 MH +
2,280 units of Dings x MH = 25800
85,700 / 25,800 = 3,3217
Assembly applies overhead based on labor hours:
expected overhead 70,900
1,080 x 7 DLH +
2,280 x 7 DLH = 23,520
70,900 / 23,520 = 3,0144557
Overhead applied for a single unit of DING:
7 x 3.01 assembly overhead +
8 x 3.32 fabrication overhead
<em>total for 47.63</em>
Answer:
The amount of the potential dividend is $7 per year per preferred share. [$100 x 7%] = $7
Explanation:
The preferred stockholder will receive $ 7 per share held each year provided there are sufficient net income to distribute those dividend.
Answer:
a. Municipal bond
b. Yes. To Corporate Bond.
Explanation:
Municipal bonds are tax exempt so the better option will be the one offering a higher return after it is adjusted for tax.
a. Corporate after-tax rate = 9.5% * ( 1 - 33%)
= 0.06365
= 6.4%
<em>Municipal rate is higher at 7% and so is a better option. </em>
b. Corporate after-tax rate = 9.5% * ( 1 - 15%)
= 0.08075
= 8.08%
<em>Corporate bond return is now higher than Municipal bond so is a better option.</em>
Answer:
D. Although sales tax rates remained unchanged, the government's revenue from sales taxes increased considerably this year
Explanation:
If revenues froms sale tax have increased, then, consumption has increased too. A sales tax is a form of consumption tax, hence, consumption and revenues from this tax are correlated, and are directly proportional. This would weaken Tabitha's argument if true.