QUESTIONS

What are the main decisions of the financial management? Explain one of them. $(15$p$)$

Table is given below shows that marginal tax rates for Alejandro Corporation. Taxable

Income of the Company is equal to $$44\mathrm{.}000.$ How much will the Company pay tax totally?

Average tax rate? $(15$p$)$

NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.

Suppose that an investment promises to pay a real $9\%$ annual rate of interest and inflation

rate is $3\%.$ What is the effective annual interest rate on this investment assuming that interest

is compounded quarterly? $(10$p$)$