How much is left for your after all taxes are paid

Assignment Help Financial Management
Reference no: EM131180291

You are a shareholder in a C corporation. The corporation earns $2.45 per share before taxes. On e is has paid taxes, it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 38%, and your personal tax rate on (both dividend and non-dividend) income is 20%. How much is left for your after all taxes are paid?

Reference no: EM131180291

Questions Cloud

What is the portfolio standard deviation : A portfolio consists of two stocks, A and B, one third of the portfolio is invested in A and the balance is invested in B. The expected return of A is 11% with standard deviation of 15% and B has expected return of 14% and standard deviation of 21%. ..
What is the amount of cash that remains in the partnership : Richard plans to invest $100,000 for a 50 percent interest in a small business. His friend Jack will also invest $100,000 for the remaining 50 percent interest. On their investment, they expect to generate 10 percent before-tax return the first year...
What type of firms typically have economies of scale : Most managers and executives believe their firm has an opportunity to take advantage of economies of scale; however, many firms do not. Select one of the questions below and respond. How could you determine if your firm has economies of scale?  What ..
Straight line be preferable to accelerated : What are the accounting and tax implications of using the MACR's accelerated cost recovery election for tax and other depreciation methods for financial accounting and reporting? What is the prospect of recapture on assets disposed before full cost r..
How much is left for your after all taxes are paid : You are a shareholder in a C corporation. The corporation earns $2.45 per share before taxes. On e is has paid taxes, it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 38%, and your personal tax rate on (both..
Based solely on the internal rate of return rule : A project has an initial cost of $68,300 and cash flows of $38,700, $102,300, and -$18,100 for Years 1 to 3, respectively. If the required rate of return for this investment is 8.7 percent, should you accept it based solely on the internal rate of re..
What is current stock price per share : Dave Inc. recently hired you as a consultant to handle project valuation. You have obtained the following information. The firm has 2 million shares of common stock outstanding. The common stock just paid a dividend of $1. It is expected to grow by 3..
What would the one-year maturity futures price : Suppose the value of the S&P 500 Stock Index is currently $1,350. If the one-year T-bill rate is 3.1% and the expected dividend yield on the S&P 500 is 2.2%. what should the one-year maturity futures price be? what would the one-year maturity futures..
What is the minimum total annual cost : A manufacturer is sourcing a component for a new product. Expected monthly demand is 705 units. The component can be purchased from either supplier A or supplier B, with the following price breaks: What order quantity is optimal if the objective is t..

Reviews

Write a Review

Financial Management Questions & Answers

  A treasury bond futures contract settled

A Treasury bond futures contract settled at 97'16. Calculate the present value of one futures contract? Are current market interest rates higher or lower than the standardized rate on a futures contract? Explain. Calculate the implied annual interest..

  Analysts predicted earnings per share

Analysts predicted earnings per share (EPS) for your company to be $0.12 at the close of 2020. How does this compare to actual EPS for 2020? If actual EPS is higher than the analysts’ prediction, what factors contributed to the success? If actual EPS..

  Considering extending trade credit

Kevin’s Wholesale is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $350,000 if credit is extended to these new customers. Of the new accounts receivable generated, 15 % will be uncollec..

  Raising funds for major investment

You are the CFO of ADP and you are raising funds for a major investment. Your strategy is to issues bonds of varying maturities to investors. One of the longer term bonds being issued can be purchased for $25,000.00 per bond and pays $1,900.00 annual..

  Explain what is the price of the bond if the bond matures

What is the price of the bond if the bond matures in 5, 10, 15, or 20 years? What do you notice about the price of the bond in relationship to the maturity of the bond?

  Yield to maturity is average promised yield over life bond

Financial statements of a large corporation prepared using US GAAP and IFRS may have some difference but the P/E ratio will be same under GAAP and IFRS. Financial Analysis of a company should be conducted within its global industry rather than other ..

  Annual expense ratio is netted out of the funds return

You purchased 3,800 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $42.00 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 2 percent. what is your to..

  Copper with fixed costs

Suppose CDE mines copper with fixed costs of $0.5/lb and variable costs of $0.4/lb. The 1 year forward price for copper is $1/lb. If CDE does nothing to manage risk. What is it's profit 1 year from now, per pound of copper, if the price of copper in ..

  Decided to sell of current furniture just prior to moving

You are planning to move next year. You recently told your best friend that you have decided to sell all of your current furniture just prior to moving as you do not want to pay to transport it across the country. Your friend offered to pay you $2,00..

  Annually deposit in a retirement account

A self-employed person deposits $3,000 annually in a retirement account (called a Keogh account) that earns 8 percent. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 4..

  What is the reward-to-volatility ratio for the equity fund

You manage an equity fund with an expected risk premium of 12% and a standard deviation of 34%. The rate on Treasury bills is 6.4%. Your client chooses to invest $80,000 of her portfolio in your equity fund and $120,000 in a T-bill money market fund...

  What amount as total capital for the partnership

The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, 2014, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. Based on this information, the statem..

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!

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