Urgently needed
"Having zero debt in the firm's capital structure is not an ideal scenario." Do you agree with this statement? Explain (word limit: 120) Question 2. (5 marks) Corporate Tax Rate Schedule Range of Taxable Income (S) Tax Calculation Base Tax (Marginal Tax amount over base bracket) to # to to + to 0 to 50,000 0 (15% amount over 0) 50,000 75,000 7.500 (25% amount over 50,000) 75,000 100,000 13.750 (34% amount over 75,000) 100,000 335,000 22.250 (39% amount over 100.000) 335,000 10,000,000 113.900 (34% amount over 335,000) 10.000.000 15,000,000 3,400,000 (35% amount over 10,000,000) 15,000,000 to 18,333,333 5.150.000 (38% amount over 15.000.000) over 18,333,333 6,416,667 (35%* amount over 18,333,333) Required: Calculate total tax due, average tax rate, and after-tax earnings for following levels of corporate earnings before taxes: a. S180,000 b. $600,000; c. $2,700,000 to + Question 3. (5 marks) During the year just ended, Spriha's distribution had pretax earnings from operations of $2,290,000. In addition, during the year it received $50,000 in income from interest on bonds & received $88,000 in income from dividend on common stock holding in Microsoft. Spriha's distribution company is in the 40% tax bracket & is eligible for 80% dividend exclusion. Interest inconte received by the company is treated as ordinary income a. Find the tax and after-tax amount attributable to the interest income. b. Find the tax and after-tax amount attributable to the dividend income. Question 4. (5 marks): Abul plans to retire in exactly 20 years. His goal is to create a fund that will allow him to receive BDT 300,000 at the end of each year for the 40 years between retirement and death (his wife told him that he would die exactly 40 years after retirement). Abul knows that he will be able to earn 8% per year during the 40-year retirement period. a. How large a fund will Abul need when he retires in 20 years to provide the 40-year, BDT 300,000 retirement annuity? b. How much will he need today as a single amount to provide the fund calculated in part a if he cams only 6% per year during the 20 years preceding retirement? Question 5. (5 marks) You have $2,500 to invest today at 9% interest compounded on an annual basis. a. Find how much you will have accumulated in the account at the end of (1) 3 years, (2) 6 years, and (3) 9 years. (Hint: Calculate the FVs) b. Use your findings in part a to calculate the amount of interest received in (1) the first 3 years (years 1 to 3), (2) the second 3 years (years 4 to 6), and (3) the third 3 years (years 7 to 9). Question 6. (5 marks) Calculation of EPS and retained earnings Philagem, Inc., ended 2019 with a net profit before taxes of S1,700,000. The company is subject to a 40% tax rate and must pay $152,000 in preferred stock dividends before distributing any earnings on the 155,000 shares of common stock currently outstanding. a. Calculate Philagem's 2019 earnings per share (EPS). b. If the firm paid common stock dividends of $3.80 per share, how many dollars would go to retained earnings
