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QUESTION 1 Consider a C corporation. The corporation earns $2 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute

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QUESTION 1 "Consider a C corporation. The corporation earns $2 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 50% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, 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 2.00 QUESTION 2 *Consider a C corporation. The corporation earns $2 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 50% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, 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." 0.415 QUESTION 3 *Consider a Scorporation. The corporation earns $2 per share before taxes. The corporate tax rate is 35%, 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 "Last Year, a corporation had a book value of equity of $25 million of USDs, 3 million shares outstanding and a market price of $12 per share. The corporations had cash of $8 million of USDs, and total debt of 590 million USDs. What was the corporation's market capitalization, in million USDs? Note: Express your answers in strictly numerical terms." 7.20 QUESTIONS "Last Year, a corporation had a book value of equity of 525 million of USDs, 3 million shares outstanding and a market price of 512 per share. The corporation also had cash of $8 million of USDs, and total debt of 590 million USDs. What was the corporation's market to book ratio?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 $500,000 wrice enter 500000 as an answer" 7.20 QUESTION 6 "Last Year, a corporation had a book value of equity of $25 million of USOS, 3 million shares outstanding, and a market price of $12 per share. The corporation also had cash of $8 million of USDs, and total debt of 590 million USDs. What was the corporation's book debt-equity ratio? 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 $500,000 write enter 500000 as an answer" QUESTION 7 "Last Year, a corporation had a book value of equity of $25 million of USDs, 3 million shares outstanding and a market price of 512 per share. The corporation also had cash of 58 million of USDs, and total debt of 590 million USDs. What was the corporation's market debt-equity ratio?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 $500,000 write enter 500000 as an answer QUESTIONS "Last Year, a corporation had a book value of equity of $25 million of USOS, 3 million shares outstanding and a market price of $12 per share. The corporation also had cash of $8 million of USDs, and total debt of $90 million USDs. What was the corporation's enterprise value in million USDs?Note: Express your answers in strictly numerical terms. QUESTION 9 "As an oil refiner, you are able to produce $36 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $30 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude. Another oil refiner is offering to trade you 31000 bbl of Alaska North Slope (ANS) crude oil for 15000 bbl of West Texas Intermediate (WTI) crude oil. Assuming you currently have 15000 bbl of WTI Crude, the added benefit (cost) to you if you take the trade is closest to Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 10 "You own 700 shares of Newstar Financial stock, currently trading for 450 per share. You are offered a deal where you can exchange these stocks for 700 shares of Amback Financial Group stock, currently trading at 5500 per share. What is the value of this trade, if you choose to make it? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 11 "If the interest rate is 8%, the year discount factor is equal to 0.05 as an answer." Note: Express your answers in strictly numerical terms. For example, if the answer is 5% enter QUESTION 12 " the 1-year discount factor is 0.88, the interest rate must be equal to enter 0.05 as an answer." Note: Express your answers in strictly numerical terms. For example, if the answer is 5% QUESTION 13 "What is the present value (PV) of $100 received 6 years from now, assuming the interest rate is 8% per year? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 14 "$500000 is invested in a certain business at the start of the year, the investor will receive 5130000 at the end of each of the next 5 years. What is the present value of this business opportunity if the interest rate is 5% per year?Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 15 "Joe just inherited the family business, and having no desire to run the family business, he has decided to sell it to an entrepreneur. In exchange for the family business. Joe has been offered an immediate payment of $100000. Joe will also receive payments of $10000 in one year. $10000 in two years, and $10000 in three years. The current market rate of interest for Joe is 10%. In terms of present value (PV. how much will joe receive for selling the family business?Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." 112399.0655

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