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!
Interest versus dividend income
During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the year it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock.
a. Calculate the firms tax on its operating earnings only.
b. Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds.
c. Find the tax and the after-tax amount attributable to the dividend income from the Tank Industries, Inc., common stock.
Calculate the past growth rate earnings. (Hint: this is a 5 year growth period. and Evaluate the next expected dividend per share, D1 [D0=0.4($6.50) =$2.60]. Assume that the past growth rate will continue.
Describe Capital budgeting decision based on net present value
Evaluate the time it takes to save $10,000 if you know you can save $300 per month in a bank account paying 10 percent interest.
Explain Covariance and correlation and standard deviation Describe what the portfolio variance calculations are meant to tell you as if you were asked to explain
Risk analysis involving computation of cash flow and coefficient of variation and Wrigley Village Yearly After-tax Cash Inflow Crosley Square Yearly After-tax Cash Inflow
If stock presently sells for= $50, what is your best estimate of company’s cost of equity capital by using arithmetic average growth rate in dividends?
Make a executive summary in which you recognize and discuss three to five evolving trends which influence innovation.
Describe how the article applies or relates to the financial management of company and answer the following questions in 600 words. Use one outside source as reference.
If Bluefield is evaluating a new investment project which has the same risk as the firm's typical project, illustrate what rate should it utilize to discount the project's cash flows.
What would be the value of this bond if interest rates fall to 5% the day after it is purchased? If interest rates fell to 5% after one year, what would the bond be worth at that point?
Determine the mean and standard deviation of the returns
Finance questions based on marginal analysis, EVA analysis. Find the current yield for Bond A.
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