What is the firms tax liability

Assignment Help Financial Management

Reference no: EM13846312

Last year, California Sushi and Such (CSS) had sales of $65 million. The firm's operating expenses amounted to $20 million and costs of goods sold totalled $15 million. In addition, CSS received $80,000 in dividend income, and paid $300,000 in dividends to its stockholders. CSS has $25 million in bonds outstanding with an annual interest payment of 9%. The firm also had $6 million in depreciation expense, and sold land for $3.5 million that had been purchased for $2.5 million several years earlier. What is the firm's tax liability?

$6,570,900

$7,970,900

$7,270,900

$8,320,900

$8,670,900

Reference no: EM13846312

Questions Cloud

Total implied and actual transaction cost : You find that the bid and ask prices for a stock are $13.75 and $15.05, respectively. If you purchase or sell the stock, you must pay a flat commission of $20. If you buy 300 shares of the stock and immediately sell them. What is your total implied a..

Interest received at the end of period is reinvested period : You placed $6342 in a savings account today that earns an annual interest rate of 11.98 percent compounded semi annually. How much will you have in this account at the end of ten years? Assume that all interest received at the end of the period is re..

Geographical arbitrage profit with two exchange rate quotes : Riskless profit on the Swiss franc. The following exchange rates are avaliable to you.(you can buy or ssell at the started rates.) Australian-euro arbitrage. A corporate treasury with operations in Sydney simultaneously calls Westpac Bank in Sydney a..

What is the nominal interest rate : Given an anticipated inflation premium of 1.40% and a real rate of interest of 4.14%, what is the nominal interest rate? Round your answer to 4 decimal places.

What is the firms tax liability : Last year, California Sushi and Such (CSS) had sales of $65 million. The firm's operating expenses amounted to $20 million and costs of goods sold totalled $15 million. In addition, CSS received $80,000 in dividend income, and paid $300,000 in divide..

Portfolio is invested in a risk-free security and two stocks : A $100,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.80 while the beta of stock B is 0.20. One-half of the portfolios is invested in the risk-free security. How much is invested in stock A if the beta of t..

Social media use in the hiring process : Social Media Use In The Hiring Process- An ethic of non-discrimination must permeate the hiring process. Develop a social media protocol for Company X to use in the hiring process

Cash outflow each period during the life of the loan : You borrow $100,000 at an interest rate of 12% compounded semi annually on January 1st, 2005. The loan terminates on December 31st, 2008. The loan terms call for interest payments every six months (at the end of each period) for the next 3 years and ..

What is the lump sum equivalent today : What is the lump sum equivalent today of $300 received at the end of each of the nxt 30 years at 4% compounded annually?

User Account

All Pages