What is turner total capital gain on this investment

Assignment Help Financial Management
Reference no: EM132020315

1. Eight months ago, Turner purchased 100 shares of Delta Frames stock at a price of $46.50 a share. Delta pays a quarterly dividend of $1.10 a share. Today, Turner sold all of his shares for $49 per share. What is Turner's total capital gain on this investment?

a. $155

b. $180

c. $250

d. $375

e. $200

2. ABC Products needs to replace its rawhide tanning and molding equipment. It can be used for five years and will have no salvage value. The equipment costs $930,000. The firm can lease it for $245,000 a year, or it can borrow the money to purchase the equipment at 8%. The firm's tax rate is 40%. The CCA rate is 20% (Class 8).What is the present value of the depreciation tax shield?

a. 293,130

b. $243,885

c. $277,177

d. $236,959

e. $286,000

Reference no: EM132020315

Questions Cloud

What is turner total capital gain on investment : Today, Turner sold all of his shares for $49 per share. What is Turner's total capital gain on this investment? What is Ernst's pre-tax cost of debt?
The firm retained earnings increase : A firm earns net income of $125,000 in a given year and the firm's retained earnings increase $31,250 for that same year. The payout ratio is:
What is meant by double taxation of dividends : What is meant by "double taxation of dividends"? According to the Gordon growth model, an increase in the required return on equity...
What is expected capital gains yield : What is the yield to maturity? what is the expected capital gains yield?
What is turner total capital gain on this investment : Delta pays a quarterly dividend of $1.10 a share. Today, Turner sold all of his shares for $49 per share. What is Turner's total capital gain on this investment
What is the present value of the depreciation tax shield : The firm's tax rate is 40%. The CCA rate is 20% (Class 8). What is the present value of the depreciation tax shield?
Process critical to purchasing transportation services : Why is the negotiation process critical to purchasing transportation services?
A company cost of debt will decrease when : A company’s cost of debt will decrease when
What is your portfolio standard deviation : The correlation coefficient between A and B is 0.6. What is your portfolio standard deviation?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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