Reference no: EM1361186
3-5
The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is choosing among AT&T Bonds, which yield 7.5%, state of Florida muni bonds, which yield 5%, and AT & T preferred stock , with a dividend yield of 6%. Shrieves' corporate tax is rate is 35%, and 70% of the dividends received are tax exempt.
Assuming that the investments are equally risky and that Shrieves chooses strictly on the basis of after-tax returns, which security should be selected? What is the after-tax rate of return on the highest yielding security?
3-7
The Menendez Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 Million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Mendndez's federal-plus-state tax rate is 40%
a: set up an income statement. What is Menendez's expected net cash flow?
b: Suppose congress changed the tax laws so that Menendez's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow?
c: Now suppose that Congress instead of doubling Menendez's depreciation, reduced it by 50%. How would profit and net cash flow be affected?
d: If this were your company would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
|
Business advantages of scm and crm
: implement a supply change management, customer relationship management and employee relationship management in my business
|
|
Describe the drive behind your interest and how you see
: Describe the drive behind your interest and how you see yourself using a greater understanding of that area in the future.
|
|
How close does the proton get to the line of charge
: A brick is released with no initial speed from the roof of a building and strikes the ground in 2.70 {rm s}, encountering no appreciable air drag. How tall is building? How fast is the brick moving just before it reaches the ground.
|
|
Role of program manager
: Should a Program Manager have a specific role play in the systems development effort? What skills should they have and where can he/she get them?
|
|
Set up an income statement and find expected net cash flow
: The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is selecting among AT&T Bonds, which yield 7.5 percent, state of Florida muni bonds, which yield 5 percent,
|
|
Impact of affirmative action on organization
: Name some positive impacts that affirmative action has had on organizations and how the organization implemented their affirmative action Plan to do so?
|
|
Write a java program using array to auto-grade exams
: Write a JAVA program using 2D Array to auto-grade exams. For a class of N students, your program should read letter answers (A, B, C, D) for each student.
|
|
What would be best advice to a person who wants
: what would be best advice to a person who wants to lean more about political issues. Watch only television news and commentary shows daily.
|
|
Affirmative action and the glass ceiling
: Affirmative Action encompasses various issues that an organization takes into consideration. AA throughout the history of employment has created and address such issues as the 4/5th rule and the glass ceiling.
|