Hw Fin515

 Hw Fin515 Essay

Webpage 80

2-6 Statement of Retained Profits

In its latest financial statements, Newhouse Incorporation. reported 50 dollars million of net income and $810 , 000, 000 of maintained earnings. The previous retained earnings were $780 million. How much in payouts was paid to shareholders during the year?

In millions

780 Previous retained earnings

40 Net Income

830

810 Retained earnings

twenty million in dividends was paid to shareholders during the year

2-7 Company Tax The liability

The Talley Corporation had a taxable income of $365, 000 coming from operations in the end operating costs but before (1) interest charges of $50, 000, (2) dividends received of $15, 000, (3) dividends paid out of $25, 000, and (4) taxes. What are the firm's tax liability and its after-tax profits? What are you can actually marginal and average taxes rates in table profits?

Income365, 000

LESS: Interest Charges(50, 000)

ADD: Dividends received 5, 500 (30% of 12-15, 000)

Taxable income: 319, 500

*In addition, 70 percent of returns received will be excluded coming from taxes 15, 000 (1-. 7) = $4, 500

Tax22, two hundred and fifty + 0. 39 (319, 500 – 100, 000)

22, 250 + eighty-five, 605 = 107, 855

After Tax Income:

Taxable Income319, 000

LESS: Fees (107, 855)

ADD: nontaxable dividends received 10, 500

222, 145

*Non-taxable returns 15, 500 x zero. 7 = $10, five-hundred

Marginal taxes rate is usually 39%

Normal is 107, 855/319, five-hundred = thirty-three. 76%, curved at thirty-three. 8%

2-9 Corporate After-Tax Yield

The Shrieves Company has $10, 000 that it plans to purchase marketable investments. It is choosing among AT& T bonds, which produce 7. five per cent, state of Florida muni bonds, which yield 5% (but are generally not taxable), and AT& T preferred inventory, with a dividend yield of 6%. Shrieve's corporate tax rate is 35%, and 70% from the dividends received are taxes exempt. Get the after-tax rates of return in all three investments.

AT& Big t bonds

7. 5% (1-0. 35)...

Share:

Related

 Busi 2215 16 18 Ed McHugh Assignment Research Paper 07.08.2019

Busi 2215 16 18 Ed McHugh Assignment Research Paper

988 07.08.2019

Busi 2215 16 18 Ed McHugh

п»їAssignment #7 Busi 2215(16-18) Ed McHugh Emily Crowell, 0659702 1 ) What purpose does culture serve for an organization? 1a. I believe the purpose…...

Read →
 Spratly Essay 07.08.2019

Spratly Essay

256 07.08.2019

Spratly

Q& A: SOUTH CHINA OCEAN DISPUTE Who have claims what? Rival countries have wrangled over place in the Southern China Ocean for centuries -- but a newly released…...

Read →
 politically savvy Essay 07.08.2019

politically savvy Essay

705 07.08.2019

politically smart

п»їOrganizational politics is a sometimes controversial and hotly contested topic. A large number of managers in large agencies lament the truth that they need to even accept its existence, much…...

Read →
 Err: Work-related Safety and Health and Children Essay 07.08.2019

Err: Work-related Safety and Health and Children Essay

872 07.08.2019

Err: Work-related Safety

ERR - Understand employment responsibilities and legal rights in overall health, social care or children's and young people's adjustments Task A – Brief Answer Questions Ai Imagine you are a recently…...

Read →
 bad effects of addictio in society Composition 07.08.2019

bad effects of addictio in society Composition

Drug addiction continues to be a major matter for world, and the matter grows with every passing yr. As alcohol and drug addiction damage lives of those most carefully affected, nevertheless…...

Read →