Q6

1. Amherst Machine is a manufacturer of tools. How much corporate income tax must they pay on $1250000in income. Use the tax rates in Chapter 2's Workshop 2.1 to answer this question.

$__________

Your answer should be in the form of dollars without a comma or dollar sign (for example, 2775).

2. The current price of MassBank common stock is $75per share. Smart Brokerage Corporation charges a transaction fee of2.5% of the total amount of a transaction. What would the purchase of 100 shares of MassBank common stock cost? $__________

* Place your answer to the nearest dollar amount. Do not include a dollar sign or comma.

3. The current price of HR Consulting common stock is $400per share. Smart Brokerage Corporation charges a transaction cost of4.0% of the total amount of a transaction. How much would an investor receive from selling 100 shares of ABC's common stock?

$___________

* Place your answer to the nearest dollar. Do not include a dollar sign or comma in your answer.

4. The bid price of Staple common stock is $18.40and offer price is $18.62. How much will an investor have to pay to buy 100 shares of Staple common stock directly from dealer? $___________

* Place your answer to the nearest dollar. Do not use a dollar sign or comma in your answer.

5. The bid price of Boston Beer Company common stock is $12.12and the offer price is $12.42. How much would an investor receive from selling 100 shares of Boston Beer Company common stock directly to the dealer?

$__________

Place your answer to the nearest dollar without using a dollar sign or comma.

6. Choose the correct category for the left side items from Sun Company's perspective.

Sun Company's inventories of raw materials

Sun Company's administration building, which houses the finance department

Land purchased by Sun Company from a local finance company

Sun Company's corporate checking accounts

Accounts receivable: money owed to Sun Company by other companies who have purchased products on credits

1)

Real Assets

2)

Financial Assets

7. The NASDAQ system lists MassBank Company currently trading at bid price $15.20and offer price $15.90. How much commission a dealer will receive if 100 shares are traded?

$___________

8. Karen is a trusted employee whose productivity declines as she works more and more hours each day. After careful observation of her work performance, her manager prepared the following chart.

Daily Number of Hours Worked by Karen / Total Numbers of Work Units Completed

1/100

2/190

3/270

4/340

5/400

6/450

7/480

8/500

Karen's total cost to the firm is $11 per hour. Each work unit completed is worth $0.21 to the firm. Ignoring all other possibilities and considerations, for how many hours should the firm hire Karen per day?

___________Hours