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

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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."