Question
Principles of Finance Rounding: I suggest you round the answers to the third decimal space. I also suggest you round your intermediate steps the ones
Principles of Finance
- Rounding:
I suggest you round the answers to the third decimal space. I also suggest you round your intermediate steps the ones you go thru in the process of reaching your final answer- to the third decimal space too.
For example, if your calculated answer was 0.0599632. then write 0.060 as your answer. In this case, you could also write 0.06 or 0.0599632.
Normally Blackboard handles very well rounding. So, rounding is generally not a problem in HWs and Exams.
- Expressing your answers correctly.
To avoid that Blackboard marks incorrect a correctly calculated answer, make sure you express your answers in strictly numerical terms and follow the directions of the specific question.
Example 1:
You are asked to express your answer IN MILLIONS, and you correctly calculated the answer to be $40,000,000. You should then write 40.
Example 2:
You are asked to express your answer IN STRICTLY NUMERICAL TERMS, and you correctly calculated the answer to be $40,000,000. You should then write 40000000.
Example 3:
You are asked to express your answer IN STRICTLY NUMERICAL TERMS, and you correctly calculated the answer to be 5%. You should then write 0.05.
QUESTION 1
-
"Consider a C corporation. The corporation earns $3 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 45% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
QUESTION 2
-
"Consider a C corporation. The corporation earns $3 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 45% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. How much is the total effective tax rate on the corporation earnings? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
QUESTION 3
-
"Consider a C corporation. The corporation earns $3 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 95% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
QUESTION 4
-
"Consider a C corporation. The corporation earns $3 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 95% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. How much is the total effective tax rate on the corporation earnings? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
QUESTION 5
-
"Consider a C corporation. The corporation earns $3 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 10% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
QUESTION 6
-
"Consider a C corporation. The corporation earns $3 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 10% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. How much is the total effective tax rate on the corporation earnings? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
QUESTION 7
-
"Consider a S corporation. The corporation earns $3 per share before taxes. The corporate tax rate is 28%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 25%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
QUESTION 8
-
"Consider a S corporation. The corporation earns $3 per share before taxes. The corporate tax rate is 28%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 25%. How much is the total effective tax rate on the corporation earnings? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started