isoiy Corporation's stockholders have provided $34,000,000 of es uchased new issues of stock and allowed management to retain some of he fum now has 2,000,000 shares of common stock outstanding, and the of $28 per share. How much value has Masterson's management added to ee the years, that is, what is Masterson's MVA? t:m, has operating income for the year of $3,500,000 and a 36% tax rate oito! is S20,000,000 and its after-tax percentage cost of capital is 8%. 3-8 rERsOsL ES Sassan and Stan Britton are a married couple who file a joint income tax where the tas rates are based on the tax tables presented in the chapter. Assume that their taxabie income this year was $375,000 a. What is their federal tax liability? b. What is their marginal tax rate? c. What is their average tax rate? Intermediate 3-9BALANCE SHEET Which of the following actions are most likely to directly increase cash as Problems 9-14 shown on a firm's balance sheet? Explain and state the assumptions that underlie your answer. a. It issues $4 million of new common stock. b. It buys new plant and equipment at a cost of $3 million. c. It reports a large loss for the year. d. It increases the dividends paid on its common stock. total common dividends and reported $144.7 million of retained earnings at year-end. The prior year's retained earnings were $95.5 million. What was the net income? Assume that all dividends declared were actually paid. 3-10 STATEMENT OF STOCKHOLDERS' EQUITY Electronics World Inc. paid out $22.4 million in EVA nrerating costs (including depreciation). The company has $15 million of total invested For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of tal is 10%, and its federal-plus-state income tax rate was 3-11 ch yalue did