User Account

All Pages

Resident for taxation purpose

Assignment Help Financial Management
Reference no: EM131058106

Molly Wesley, 45 years old and a single mum of twin boys, James and Oliver, has been working as aproprietary computer software engineer for more than two decades. As a middle-aged entrepreneur,Molly is planning the financial future of her family. So she seeks opinions from you, a financial advisor,about the matters listed below. Assume Molly is an Australian resident for taxation purpose.

Molly provides IT services, including programing and system maintenance, to several largecorporations. These long-term contracts offer her steady income streams. Molly estimates the beforetaxprofit of her IT business will be between $250,000 and $300,000 for 2015/16. Considering theincome tax payable ONLY, should Molly incorporate her business?

Reference no: EM131058106

Questions Cloud

How many years do these bonds have left until they mature : Shinoda Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.4 percent. The current yield on these bonds is 5.75 percent. How many years do these bonds have left until they mature?
Effective rate of interest : Koopman's Chickens, Inc. plans to borrow $300,000 from its bank for one year. The rate of interest is 10 percent, but a compensating balance of 15 percent is required. What is the effective rate of interest?
What is the current yield on bond-effective annual yield : Bourdon Software has 11.4 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 108.5 percent of par. What is the current yield on the bonds? What is the effective annual yield?
Show that this new definition is equivalent to the original : A relation schema R is in 3NF with respect to a set F of functional dependencies if there are no nonprime attributes A in R for which A is transitively dependent on a key for R. Show that this new definition is equivalent to the original one.
Resident for taxation purpose : As a middle-aged entrepreneur,Molly is planning the financial future of her family. So she seeks opinions from you, a financial advisor,about the matters listed below. Assume Molly is an Australian resident for taxation purpose.
Appreciated or devalued against the mark : Assume that a bank has assets located in London worth £150 million on which it earns an average of 8 percent per year. The bank has £100 million in liabilities on which it pays an average of 6 percent per year. The current spot exchange rate is £1..
What are the goals of managerial accounting : How have the terms minority and majority evolved during your lifetime? How is this supported or negated through your reading of this week's American minority writers? Please share your impressions from the reading, include a quote, and, perhaps, a..
Themes and patterns about civil disobedience : read two articles: Search for common themes and patterns about civil disobedience. Do you think that civil disobedience is a valid way to change in society? Defend your position. Need to cite two articles.
Show that every 3nf schema is in 2nf : Show that every 3NF schema is in 2NF. (Hint: Show that every partial dependency is a transitive dependency.)

Reviews

Write a Review

Financial Management Questions & Answers

  Will the tax benefits be diminished as a consequence

TNG Corporation is a manufacturing company, which has accumulated an net operating loss of $ 2 billion over time. It is considering borrowing $ 5 billion to acquire another company. Based upon the corporate tax rate of 36%, estimate the present value..

  Find the YTM and the YTC of the bond

A bond sells for $1290, pays $60 annual interest and matures in 20 years. It has a callable feature giving the right to the firm to buy it back from the investor after 8 years at 108 par value. Find the YTM and the YTC of the bond. Which of the 2 wil..

  Considering a put option, an increase in the strike price:

Marking to market is a process that. Considering a put option, an increase in the strike price: At expiration, the time value of an option:

  Affects corporate governance and whether impact is positive

Explain how each of the following affects corporate governance and whether the impact is positive or negative.

  Default risk premium

A company's 5-year bonds are yielding 9.9% per year. Treasury bonds with the same maturity are yielding 5.15% per year, and the real risk-free rate (r*) is 2.65%. The average inflation premium is 2.1%, and the maturity risk premium is estimated to be..

  Future value of an annuity-saving for retirement

Your client is 35 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $9,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average ret..

  What is the companys cost of equity

The Muse Co. just issued a dividend of $3.45 per share on its common stock. The company is expected to maintain a constant 7.10 percent growth rate in its dividends indefinitely. If the stock sells for $69 a share, what is the company’s cost of equit..

  Statements concerning qualified target-benefit pension plans

All of the following statements comparing a profit-sharing plan to a pension plan are correct, EXCEPT: Which of the following statements concerning the basic provisions that are unique to ESOPs is (are) correct? All the following statements concernin..

  Requires an initial fixed asset investment

Down Under Boomerang, Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $4,200,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it wi..

  Capital investment committee refused

Unfortunately, the Capital Investment Committee refused to approve your recommendation (Problem 1) since you did not consider the uncertainty inherent in these types of investments. Normal distribution (mean of $10,000, standard deviation of $3,000) ..

  What is the underlying asset for option

What kind of an option is this, in terms of the three investment project options we discussed (timing, follow-on, abandon)? Why - Is this like a put option or like a call option?

  What is the price of the bond-until maturity

A bond has a coupon rate of 12 percent and 14 years until maturity. If the yield to maturity is 9.3 percent, what is the price of the bond?

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd