Finance Essay

(2-6) Statement of Retained Earnings In its most late mo authorizeary statements, Newhouse Inc. reported $50 zillion of net income and $810 cardinal of retain earnings. The previous retained earnings were $780 jillion. How much in dividends was pay to sh areholders during the year? Dividend paid = Previous Balance retained earning + net income - New Balance retained earning Dividend = $780 million + $50 million - $810 million= $830 million - $810 million= $20 million (2-7) Corpo outrank revenue liability The T everyey Corporation had a evaluateable income of $365,000 from operations after all operating costs only before (1) interest charges of $50,000, (2) dividends legitimate of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What are the watertights income tax financial obligation and its after-tax income? What are the companionships marginal and average tax judge on taxable income? After-tax income = 365,000-50,000+4500=319,500 Talleys tax i ncome Liability: taxable operating(a) Income --- $365,000 Taxable Interest --- ($50,000) Taxable Dividend $4,500... Tax = $22,250 + ($319,500 - $100,000)(0.39) = $22,250 + $85,605 = $107,855. Tax = $107,855 After-tax income: Taxable income $319,500 Taxes -$107,855 Plus Non-taxable dividends $10,500 Net income $222,145 Non-taxable dividends: $15,000 x 0.7 = $10,500.

marginal tax charge per unit is 39%. average tax rate is $107,855/$319,500 = 33.76%. (2-9) Corporate After-Tax establish The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which sacrifice 7.5%, state of Florida muni bonds, which yield 5% (but are not taxable), and AT&T preferre! d stock, with a dividend yield of 6%. Shrievess corporate tax rate is 35%, and 70% of the dividends received are tax exempt. Find the after-tax rank of strike on all three securities. A T & T Bonds 10,000 X 7.5%= $750 $750 X .35 = $262.50 $750 -262.50 = $487.50 $487.50/$10,000=4.875% After tax rates=4.875% A T & T Preferred Stock...If you want to take a shit a full essay, order it on our website: OrderEssay.net

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