Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Business is going well for Lazer Technology Ltd. The board of directors of this familyowned company believes that Lazer Technology Ltd could earn an additional $1,800,000 in profit before interest and taxes each year by expanding its range of products. However, the $4 million that the business needs for growth cannot be raised within the family. The directors, who strongly wish to retain family control of the business, must consider issuing shares to outsiders. They are considering two financing plans.
Plan A is to issue 100,000 ordinary shares at $40 each. Plan B is to borrow at 11% over five years. Interest is paid at the end of each year.
Lazer Technology Ltd presently has 500,000 ordinary shares issued. Both plans will raise the required $4 million. The company income tax rate is 30%.
Required: (1) Calculate the additional annual profit after interest and tax available to existing ordinary shareholders under each plan. (2) Analyse the advantages and disadvantages of both plans from the company’s viewpoint.
Natale transfers to Window Corporation depreciable machinery originally costing $ 23,000 and now having a(n) $ 18,000 adjusted basis. In exchange, Natale receives all 75 shares of Window stock having a(n) $ 22,000 FMV and a three-year Window note hav..
Calculate the amount of over- or under-applied overhead - what is the significance of this over- or under-applied amount of overhead?
Caculate - Budgeted direct wages percentage rate of overhead absorption - The absorbed overhead - The over/ under absorbed overhead.
Develop an additional ethical compliance strategy that addresses the client’s estate tax and the interest and penalty that will accrue if he does not make timely payments of tax. Acknowledge appropriate tax case law and statutes. Consider quantifying..
Schuh, Inc. plans to produce 6,000 units in Month 1 and 7,000 units in Month 2. Each unit requires 3 pounds of direct materials that can be purchased for $2 per pound. At the beginning of Month 1 there are 2,000 pounds of direct materials on hand. Sc..
Prepare journal entries (in general journal form) to record the above transactions. Use a 360-day year in making the interest calculations.
Westmont Company acquires all outstanding preferred shares for $214,000 and 60 percent of the common stock for $1,253,280. The acquisition-date fair value of the non controlling interest in Cold water’s common stock was $835,520. What amount of conso..
How does this transaction affect the total liabilities and the total stockholders' equity of the company? In your answer, show the effects on four accounts.
The chief executive officer of Ginny's Fashions has included the following financial statements in a loan application submitted to Priority Bank.
Complete the statement below that outlines what the Federal income tax ramifications are.A capital gain of $ 80,000 is reported at the corporate level, and each shareholder includes a flow-through of $ 20,000 . David's basis in the S corporation beco..
Explain why the company's supply chain strategy is successful, for example, the selection and management of suppliers, and determination of information needs and systems. What advantage does Zara gain against the competition by having a very responsi..
Review national health care billing audit guidelines. Briefly describe in 2-3 paragraphs the billing audit guidelines ( qualifications of auditors, notifications of audit, role of audit coordinators, etc.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd