Thornton, Inc., had taxable income of $131,387 for the year. The company's marginal tax rate was 35 percent and its average tax rate was 22.8 percent. How much did the company have to pay in taxes for the year?
Q: Island Bank is advertising a special 1.55% APR for long term CDs. Manny takes out a one-year CD for…
A: Interest rate = r = 1.55% Compound = n = daily = 365
Q: Your company has been approached to bid on a contract to sell 5,000 voice recognition (VR) computer…
A: Here, Tax Rate is 23% Required Return is 10% Variable Cost is $85 Required NPV is $100,000
Q: You own a stock portfolio invested 22 percent in Stock Q, 23 percent in Stock R, 42 percent in Stock…
A: Portfolio Beta is the total of each stock weightage in the portfolio multiplied by the beta of each…
Q: Suppose the exchange rate between U.S. dollars and British Pounds is $1.00 = 1.70 Pounds and the…
A: Exchange rate between U.S. dollars and British Pounds = 1.70 Pounds per dollar Exchange rate between…
Q: You have purchased a guaranteed investment contract (GIC) from an insurance firm that promises to…
A: Initial value (PV) = $20,000 Interest rate (r) = 0.05 Period (n) = 6 Years To Find: Amount we get in…
Q: You owe $2,000 on a credit card that charges 20% interest. You have $2,200 in your savings account…
A: Debt on Credit card = $2,000 Bank balance on Savings account = $2,200 SB Interest rate = 1.69%…
Q: Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales…
A: Here, Particulars 2020 2021 Sales 80000 97200 Cost of sales 50000 72000 Gross margin 30000…
Q: Convert a 36% markup on selling price to the equivalent percent markup on cost.
A: Markup on selling price = 36%
Q: There were no changes in the shares outstanding during 2021. The rate of cash flow to total…
A: To determine the rate of cash flow to total liabilities, we first must determine the total…
Q: A company has $20 billion of sales and $1 billion of net income. Its total assets are $10 billion.…
A: sales = s = $20 billion Net income = ni = $1 billion Total Assets = ta = $10 billion Interest rate =…
Q: Problem 24-1A (Algo) Payback period, net present value, and net cash flow calculation LO P1, P3…
A: Net Present Value - It is the difference between the present value of cash outflow and present value…
Q: Describe the importance of discount rates relative to capital budgeting? none of the above O to…
A: A discount rate is the rate of return used to discount future cash flows back to their present…
Q: Sharp Co. has generated these data for the 2 most recent years where 2021 sales price was 10% lower…
A: Sales Value in year 2020 = P 1,900,800 Sales Value in year 2021 = P 1,944,000 Let Sales Price in…
Q: Briefly define GDP and GDP-P. Explain how would you use PPP to understand financials in a country.
A: Gross Domestic Product (GDP) is a fundamental concept in economics that serves as a measure of a…
Q: If you buy a computer directly from the manufacturer for $2,815 and agree to repay it in 36 equal…
A: Present value = pv = $2815 Compound = monthly = 12 Number of payment = n = 36 Interest rate = r =…
Q: Pharoah Co. is considering purchasing equipment that has an initial investment of $43000. The…
A: Introduction: Profitability Index or PI is the ratio of present value of cash inflows to the…
Q: Crane Corporation is considering investing in a new facility. The estimated cost of the facility is…
A: IRR Internal Rate of return is the rate of return at which the project will be at break even point…
Q: Give typing answer with explanation and conclusion Mr. Oldman retired from his job after 29 years 6…
A: As a government employee, Mr. Oldman is eligible for a tax exemption on his gratuity amount as per…
Q: Stock options on Microsoft, September 4, 2019 Expiration Strike Call Put 27-September-2019 130 8.65…
A: A call option is a type of financial contract that gives the buyer the right, but not the…
Q: ou win the Console Lottery. They payoff is a growing “console” bond. That means that the bond will…
A: We can determine the PV of the console bond using the PV of perpetual growth formula as below: PV =…
Q: Too Young, Incorporated, has a bond outstanding with a coupon rate of 7.1 percent and semiannual…
A: The cost of debt is the expected return of the bond. The after-tax cost of debt is the cost of debt…
Q: ABC Co. reinvests 40% of its earnings to its own operations and has current dividends yield of 20%.…
A: EPS P20 Less: Earnings reinvests in operation (P20 * 40%) P8 Dividend per share (P20 - P8) P12
Q: Which is an example of horizontal analysis? A. Operating income amounts to P20,000. B.…
A: Horizontal Analysis. It is comparing of financial information of one reporting period with the…
Q: Activity in Mortgage Market Offer instruments to help institutions that invest in mortgages hedge…
A: Institutions that offer instruments to help institutions that invest in mortgages hedge (protect…
Q: 2. How many feet does a car traveling at 40 mph cover in one hour? in one minute? in one second?…
A: Time and distance problem entails distance travelled at specific speed in certain time period.
Q: What will be the account's valu if the interest is compounded r 4000(1+(0.07)/(12))^(12(10))
A: Here, PV is 4000 Interest Rate is 7% Compounding Period is Monthly Time Period is 10 years
Q: A firm reported income of P100,000, P120,000 and P130,000 for years ended December 31, 2019, 2020…
A: Net Income for year ended December 31, 2021 P130,000 Net Income for year ended December 31, 2020…
Q: Debra Diacono, CFO of James Ltd a listed Australian company, has approached you for advice on how to…
A: First we need to use CAPM model to calculate cost of equity. Cost of Equity =Risk free…
Q: 5-56. (Comprehensive present value) You are trying to plan for retirement in 10 years, and currently…
A: The future value represents the expected worth of the present series of cash flows. It is computed…
Q: Bob’s Standard Station has 15,000 shares of stock outstanding at a market price of $15 a share. The…
A: Earning per share(EPS) is generally the interest to present the present or prospective stock holders…
Q: Last year, Headline News Corporation paid $600,000 in dividends and retained $200,000 of the…
A: The question is based on the concept of Financial Management. Dividend: It is the share of the…
Q: Nakamura, Incorporated, has a total debt ratio of .57, total debt of $317,000, and net income of…
A: Total debt ratio is calculated by dividing total debts by total assets. It is also known as debt to…
Q: a) Compute the present value of an annuity due that pays £2,000 annually, at a rate of 3% p.a.…
A: An annuity due is that annuity in which the cash flow occurs at the beginning of each period. To…
Q: hat are the operating cash flows in years 1 to 5?
A: Operating cash flows are the cash money available from core operations of the company. Operating…
Q: Why can an M&A fail? O a. Economies of scale O b. shortcomings of the due diligence process,…
A: In general terms merger and acquisition refers to the consolidation of assets of 2 or more entities.…
Q: You need $82,000 in 12 years. If you can earn .49 percent per month, how much will you have to…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: h-definition TV costs a company $3,200 to manufacture. If it sells for $6,782, what is the percent…
A: Selling price. A =6782 Manufacturing Cost(B)=3200 Markup A-B…
Q: Exercise 10-4A (Algo) Determining the present value of an annuity LO 10-1 The dean of the School of…
A: Net present value refers to the method of capital budgeting used for calculating the difference…
Q: ou have the choice of two equally risky annuities, each paying $5,000 per year for 8 years. One is…
A: The concept of time value of money will be applied here. Annuity refers to a fixed periodic sum of…
Q: An option holder has long positions in call and put options written on an underlying asset currently…
A: If the put option has a strike price of €55 and a premium of €4, and the call option has a strike…
Q: Consider the cash flow shown in the accompanying diagram. If the value of C is $950, calculate the…
A: When the present value of cash outflow and cash inflows both are equal than we can say that cash…
Q: An investment manager based in Germany hedges a portfolio of UK gilts with a 3-month forward…
A: As per the given information: Current spot rate - GBP0.833/EUR90-day forward rate - GBP0.856/EURRise…
Q: Which one of the following stocks is correctly priced if the risk-free rate of return is 4.1 percent…
A: We will apply the CAPM model here. CAPM stands for Capital Asset Pricing Model.
Q: Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset…
A: Risk free rate = rf = 7% Market return = rm = 10% Beta = 0.9
Q: i)discuss accounting issues in risk management, and explain the following terms: fair value hedge,…
A: “Since you have posted multiple questions with multiple sub parts,we will provide the solution only…
Q: Find the maturity value on a loan of $2,500 at 11.5% interest, for 72 months. Use the formula MV = P…
A: 1. MV = P + I where , MV = maturity value of loan P = amount of loan I = Interest amount on loan…
Q: hich statement about book value per share (BVPS) is true??? A. Market price per share usually…
A: When company start the operations than company issues shares and they are issued at very low prices…
Q: ne that you are a 25-year old finance professional. You wanted to buy the latest model of your…
A: Buying any equipment involves cost and money is borrowed and so there decision making involved in…
Q: An individual borrows £15,000 to be repaid in 10 years with monthly payments at the end of each…
A: Loans are repaid through fixed periodic payments. The fixed periodic payments include both interest…
Q: Identify which of these statements regarding real estate limited partnerships (RELPs) and real…
A: Both RELPs and REITs give investors the option to purchase real estate without personally owning and…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the companys pre-tax income in order to have $60,000 after-taxes? A. $88,235 B. $19,200 C. $79,200 D. $143,000Diamond, Inc. had the following Income Statement at the end of the year. Compute Diamond's federal income tax expense given the tax rate of 21%. What is the company's net income?Thornton, Inc., had taxable income of $130,022 for the year. The company's marginal tax rate was 34 percent and its average tax rate was 23.5 percent. How much did the company have to pay in taxes for the year?
- Whipporwill, Incorporated's, net income for the most recent year was $9,551. The tax rate was 23 percent. The firm paid $4,695 in total interest expense and deducted $5,162 in depreciation expense. a. What was the company's taxable income for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What was the company's EBIT for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What was the company's cash coverage ratio for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.Required Answer each of the following questions by providing supporting computations. 1. Assume that the company’s income tax rate is 30% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax. 2. Compute the amount of income from continuing operations before income taxes. What is the amount of the income tax expense? What is the amount of income from continuing operations? 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? 4. What is the amount of net income for the year?MENT Byron Books Inc. recently reported $13 million of net income. ItsEBIT was $20.8 million, and its tax rate was 35%. What was its interest expense? (Hint:Write out the headings for an income statement, and fill in the known values. Then divide$13 million of net income by (1 2T) 5 0.65 to find the pretax income. The differencebetween EBIT and taxable income must be interest expense. Use this same procedure tocomplete similar problems.)
- Bryon Brooks Inc. recently reported 15 million of net income. Its EBIT was 20.8 million, and its tax rate was 25%. What was its intrest expense?(Hint: Write out the headings for an income statement, and fill in the known values. Then divide 15 million of net income by (1-T)= 0.75 to find the pretax income. The difference between EBIT and taxable income must be intrest expense.Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was$13 million, and its tax rate was 40%. What was its interest expense? (Hint:Write out the headings for an income statement and then fill in the knownvalues. Then divide $6 million net income by 1 - T = 0.6 to find the pretax income. The difference between EBIT and taxable income must be theinterest expense. Use this procedure to work some of the other problems.)Oakdale Fashions, Inc. had $245.000 in 2018 taxable income. Using the tax schedule in Table 23 to calculate the company's 2018 income taxes. (Round your answer to the nearest dollar amount.) Income taxes What is the average tax rate? (Round your answer to2 declmal places.) Average tax rate What is the marginal tax rate? Marginal tax rateByron Books Inc. recently reported $13 million of net income. Its EBIT was $22.1 million, and its tax rate was 35%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $13 million of net income by (1 - T) = 0.65 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.Little Books, Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? (Hint: write out the headings for an income statement and then fill in the known values. Then divide $3 million net income by (1-T) to find pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to work some of the other problems.)Goose Industries faces the following tax schedule. Last year the company realized $15,000,000 in operating income (EBIT). Its annual interest expense is $7,500,000. (1) Compute the company’s income taxes payable? Use the tax rate table below. (2) What was the company’s net income for the year? If a corporation's taxable income is It pays this amount on the base of the bracket Plus this percentage on the excess over the base (marginal rate) Average tax rate at top of bracket Up to $50,000 $0 15% 15.0% $50,000 – $75,000 $7,500 25% 18.3% $75,000 – $100,000 $13,750 34% 22.3% $100,000 – $335,000 $22,250 39% 34.0% $335,000 – $10,000,000 $113,900 34% 34.0% $10,000,000 – $15,000,000 $3,400,000 35% 34.3% $15,000,000 – $18,333,333 $5,150,000 38% 35.0% Over $18,333,333 $6,416,667 35% 35.0% (1) $2,436,000 (2) $4,950,000 (1) $2,550,000 (2) $4,950,000 (1) $2,550,000 (2)…SEE MORE QUESTIONS
