Need help with the second part
Kraftstoff of Germany. Kraftstoff is a German-based company that manufactures electronic fuel-injection carburetor assemblies for several large automobile companies in Germany, including Mercedes, BMW, and Opel. The firm, like many irms in Germany today, is revising its financial policies in ine with the increasing degree of disclosure required by firms if they wish to ist their shares publicly in or out of Germany Kraft to s primary problem s that the German corporate come ax code applies a d erent income tax rate o income depending on whether it s retained 40% or dis buted to stockholders 28%). The company's earnings before a EBT is 485,000,000. a. If Kraftstoff planned to distribute 50% of its net income, what would be its total net income and total corporate tax bills? b. f Krafts was attempting to choose between a 40% and 60% payout rate to stockholders, what arguments and values would management use in order to convince stockholders which of the two payouts a in everyone's best interest? a. If Kraftstoff planned to distribute 50% of its net income, calculate its total net income and toall corporate tax bills in the following table: Round to the nearest whole euro. 50% payout Kraftstoffs Income Items Earnings before taxes (EBT) Less income taxes at 28% Net income 485,000,000 (135,800,000) 349,200,000 174,600,000 Distributed income Less added distributed income taxes Aiter-tax distributed income 174,600,000 Retained income Less added retained income taxes Alter-tax retained income E 174,600,000 (20,952,000) 153,648,000 Total after-tax net income 328,248,000 Total income taxes 156,752,000 Kraftstoff of Germany. Kraftstoff is a German-based company that manufactures electronic fuel-injection carburetor assemblies for several large automobile companies in Germany, including Mercedes, BMW, and Opel. The firm, like many irms in Germany today, is revising its financial policies in ine with the increasing degree of disclosure required by firms if they wish to ist their shares publicly in or out of Germany Kraft to s primary problem s that the German corporate come ax code applies a d erent income tax rate o income depending on whether it s retained 40% or dis buted to stockholders 28%). The company's earnings before a EBT is 485,000,000. a. If Kraftstoff planned to distribute 50% of its net income, what would be its total net income and total corporate tax bills? b. f Krafts was attempting to choose between a 40% and 60% payout rate to stockholders, what arguments and values would management use in order to convince stockholders which of the two payouts a in everyone's best interest? a. If Kraftstoff planned to distribute 50% of its net income, calculate its total net income and toall corporate tax bills in the following table: Round to the nearest whole euro. 50% payout Kraftstoffs Income Items Earnings before taxes (EBT) Less income taxes at 28% Net income 485,000,000 (135,800,000) 349,200,000 174,600,000 Distributed income Less added distributed income taxes Aiter-tax distributed income 174,600,000 Retained income Less added retained income taxes Alter-tax retained income E 174,600,000 (20,952,000) 153,648,000 Total after-tax net income 328,248,000 Total income taxes 156,752,000
