What is the firm s average tax rate?

Assignment Help Finance Basics
Reference no: EM13895134

1. Which of the following would result in a decrease in cash flow and a use of cash?

A. A decrease in notes payable

B. An increase in long-term debt

C. A decrease in inventory

D. A decrease in common stock

2. In the United States, for the 2007 tax year, federal corporate income tax rates never exceeded an average rate of

A. 15%. C. 39%.

B. 35%. D. 34%.

3. A firm has assets of $60,000 and owners equity of $33,000.

Which of the following is the correct balance of the firm s liabilities?

A. $33,000 C. $93,000

B. $27,000 D. $60,000

4. Which of the following would result in an increase in cash flow and a source of cash?

A. A decrease in notes payable

B. A decrease in long-term debt

C. An increase in inventory

D. An increase in common stock

5. A firm has current assets of $10,000 and current liabilities of $7,000. Which of the following is the correct net working capital for the firm?

A. $10,000 C. $3,000

B. $7,000 D. $13,000

6. If a firm has an accounts receivable balance of $18,800 at the end of 2007 and $16,500 at the end of 2008, which of the following statements about accounts receivable is correct?

A. Accounts receivable decreased by $2,300 and represented a use of cash.

B. Accounts receivable increased by $2,300 and represented a source of cash.

C. Accounts receivable decreased by $2,300 and represented a source of cash.

D. Accounts receivable increased by $2,300 and represented a use of cash.

7. If a firm has revenues of $15,090 and expenses of $8,850, what is the firm s taxable income?

A. $15,090 C. $6,240

B. $8,850 D. $23,940

8. Which of the following statements about the issuance of an initial public offering (IPO) is correct?

A. IPOs may be either underpriced or overpriced.

B. IPOs are never overpriced.

C. IPOs are never underpriced.

D. IPOs are always correctly priced.

9. If a firm has revenues of $15,090, operating expenses of $8,850, and a tax expense  of $2,120, what is the firm s net income?

A. $8,850 C. $6,240

B. $4,120 D. $8,360

10. When you re preparing a common-sized balance sheet, which of the following measures is set to equal 100 percent?

A. Total liabilities C. Total owners equity

b total assets d cash

11. Suppose that a corporation has a taxable income of $200,000. What is the firm s corporate income tax for the current tax year? (You can use the following table to calculate the firm s U.S. federal corporate tax.)

Taxable Income

More Than

Taxable Income

Less Than

Tax

Rate

$0 $50,000 15%

$50,001 $75,000 25%

$75,001 $100,000 34%

$100,001 $335,000 39%

$335,001 $10,000,000 34%

$10,000,001 $15,000,000 35%

$15,000,001 $183,333,334 38%

$18,333,334 35%

A. $78,000 C. $39,000

B. $6,250 D. $61,250

12. Using the same table and information provided in

Question 11, what is the firm s average tax rate?

A. 39% C. 34%

B. 30.625% D. 31.625%

13. Using the same table and information provided in Question 11, what is the firm s marginal tax rate?

A. 39% C. 34%

B. 30.625% D. 31.625%

14. Dilution refers to the loss of shareholder value, and may be represented by all of the following except dilution of

A. ownership percentage.

B. market value.

C. the firm s current ratio.

D. book value per share.

15. If a firm has $6,940 in earnings before interest and taxes, $650 in depreciation expense, and $2,120 in taxes, what is the firm s operating cash flow?

A. $4,120 C. $6,240

B. $5,470 D. $9,710

16. The type of financial statement that summarizes the sources and uses of cash over a specified period of time is called the

A. statement of cash flows.

B. income statement.

C. balance sheet.

D. inventory ratio statement.

17. The current ratio falls within which of the following classifications of financial ratios?

A. Long-term solvency measures

B. Asset management or turnover measures

C. Short-term solvency or liquidity measures

D. Profitability measures

18. If a firm has an accounts payable balance of $34,400 at the end of 2007 and $31,200 at the end of 2008, which of the following statements about accounts payable is correct?

A. Accounts payable decreased by $3,200 and represented a use of cash

B. Accounts payable increased by $3,200 and represented a source of cash

C. Accounts payable decreased by $3,200 and represented a source of cash

D. Accounts payable increased by $3,200 and represented a use of cash

19. Which of the following is not one of the six costs of issuing securities?

A. Rights offering C. Green Shoe option

B. Abnormal returns D. Gross spread

20. In the United States, for the 2007 tax year, federal corporate income tax rates never exceeded a marginal rate of

A. 15%. C. 39%.

B. 35%. D. 34%.

Reference no: EM13895134

Questions Cloud

How might managers ensure their bidding procedure is fair : With regard to the case, Coral Construction, Inc v. San Francisco, without using preferential bidding, how might managers ensure that their bidding procedure is fair to all businesses, including those that may be suffering the effects of past disc..
Calculate the effect on profits of processing product : What should Elm do if it wants to maximize its profit for the period and calculate the effect on profits of processing Product A further beyond the split-off point - Calculate the effect on profits of processing Product D further beyond the split-off..
Write sql query to select students having gpa greater than 3 : Perform the following operations using SQL. Create a Database ('fdb') using any one from Oracle, Sybase, DB-2, SQL Server or MySQL. Write SQL query to select students having GPA greater than 3 and the result should be sorted according to name
Nacl dissolves in water, aqueous na+ and cl- ions result : When NaCl dissolves in water, aqueous Na+ and Cl- ions result. The force of attraction that exists between Na+ and H2O is called ____ interaction.
What is the firm s average tax rate? : what is the firm s average tax rate?
Can people increase their collaboration skills : Eexplain why it is an important skill for business professionals. Describe what is working with regards to your group's process and what is not working. Can people increase their collaboration skills? If so, how? If not, why not?
Different kinds of separations in gc chromatography : What are the different kinds of separations in GC chromatography?
What is an electron : What is an electron? An electron in terms of a subatomic particle in chemistry.
How do you handle her request : Word filters out that Steve has asked to bring Poochie Pie to work. An administrative assistant on the top floor, Carla, comes to you and says that she is afraid of dogs due to the fact that she was bitten by a dog when she was three. Any contact ..

Reviews

Write a Review

Finance Basics Questions & Answers

  An investor receives a 15 total return by purchasing a

an investor receives a 15 total return by purchasing a stock for 40 and selling it after one year with a 5 capital

  Importance of prices in the healthcare industry

Discuss the importance of prices in the healthcare industry. Explain traditional methods for paying healthcare organizations and how these may impact the pricing.

  Calculate the duration of a one-year fixed payments loan

Calculate the duration of a one-year fixed payments loan with monthly payments of $150 and yield to maturity of 12%. Use this number to determine the % change in the price of this loan if interest rates increase to 14%.

  Evaluate the accuracy of each of these methods

Sales of industrial vaccum cleaners at R. Lowenthal supply Co. over the past 13months are as follows: Sales ( $1,000s)/ month 11- Jan. 14- Feb. 16- march 10-april 15-may 17-june 11-july 14-august 17-sept. 12-oct. 14-nov. 16-dec. 11-jan.

  What is the yield to maturity

The 7 percent annual coupon bonds of TPO, Inc. are selling for $1,021. The bonds have a face value of $1,000 and mature in 6.5 years. What is the yield to maturity?

  Q tapley incs current target capital structure has a target

q tapley inc.s current target capital structure has a target debt ratio dta of 60 percent. the firm can raise up to 5

  Explain why the index model is superior to the markowitz

Explain why the index model is superior to the Markowitz method? What are the steps to form an optimized portfolio using the index model?

  Under what interest rates would you prefer a perpetuity

under what interest rates would you prefer a perpetuity that pays 2 million a year to a one-time payment of 40

  What is the length of the annuity time period

You are considering an annuity which costs $127,392 today. The annuity pays $7,700 a year at an annual interest rate of 4.5 percent. What is the length of the annuity time period?

  What is the initial amount the firm wants to raise

A firm with the rating AA plans to issue one million shares of a 4 year-10% bond with face value $100. After the financial crisis this firm is downgraded to a B rating. The risk free rate is 1.5%. The default spreads are given in the table below.

  The villanova corporation has two different bonds currently

the villanova corporation has two different bonds currently outstanding. bond m has a face value of 20000 and matures

  Question 1 nbspthis question should be a good gauge of your

question 1. nbspthis question should be a good gauge of your ability to apply your tools and analytic skills acquired

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