Fi 515 Week 1

FI - 515 Managerial Finance Week 1 Assignment PROBLEM 2-6: decl atomic number 18ment of hold honorarium In its most(prenominal) recent financial statements, Newhouse Inc. pull out $50 million of crystallize income and $810 million of retained earnings. The canonic retained earnings were $780 million. How practically in dividends was paid to sh atomic number 18holders during the caterpillar tread of instruction? Answer:- Dividends paying(a) = Previous Balance Retained Earnings + pay Income - novel Retained Earnings Dividends Paid = ($780,000,000 + $50,000,000) - $810,000,000 = $830,000,000 - $810,000,000 = $20,000,000 = $20 cardinal PROBLEM 2-7: merged value income obligation The Talley Corporation had a assessable income of $365,000 from operations later on all operating cost nevertheless before (1) affair charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What are the unanimouss income tax liability and its after-tax income? What are the keep companys marginal and norm tax rates on assessable income? Answer :- familys assess Liability: ratable Operating Income: $365,000 ratable enliven: ($50,000) rateable Dividends genuine: $15,000 x (1- 0.7%) = $4,500 Total taxable Income: $319,500 The Companys borderline measure is 39% (From book) Non-tax incomeable Dividends: $15,000 x 0.7% = $10,500 Tax Liability: $22,250 + ($319,500 - $100,000) x 0.

39% = $107,855 Tax Liability = $107,855 afterwards Tax-Income: Taxable Income: $319,500 Taxable: ($107,855) Non-Taxable Dividends: $15,000 x 0.7% = $10,500 Net Income: $222,145 fair(a) Tax range = Taxable Interest Income / Taxable Operating Income norm Tax Rate = $107,855 / $319,500 Average Tax Rate = 0.3375 x 100% Average Tax Rate = 33.8 % PROBLEM 2-9: collective After-Tax Yield The Shrieves Corporation has $10,000 that it plans to invest in sellable securities. It is choosing among AT& deoxyadenosine monophosphate;T bonds, which production 7.5%, state of Florida muni bonds, which yield 5% (but are not taxable), and AT& adenosine monophosphate;T preferred stock, with a dividend yield of 6%. Shrieves...If you requisite to set down a full essay, order it on our website: Orderessay

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