The parent receives annual dividends from the subsidiary of $2,500,000. If the parent's marginal tax rate is 34% and if the exclusion on intercompany dividends is 70%, what is the effective tax rate on the intercompany dividends, and how much net dividends are received? Question 20 New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market.
How many years will it take for $197,000 to grow to be $554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest? 8. At what quoted annual interest rate must $134,000 be invested so that it will grow to be $459,000 in 15 years if interest is compounded weekly? 9. An annuity pays $24,000 per year for 11 years (first payment one year from today).
Say you own an asset that had a total return last year of 17 percent. If the inflation rate last year was 5 percent, what was your real return? | | 11.33% | | -10.26% | | 11.53% | | 11.63% | | 11.43% | ------------------------------------------------- Top of Form Grohl Co. issued 7-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond price?
A company leases a machine on January 1, Year One for five years which call for annual payments of $4,000 for the first year and then $10,000 per year after that. The present value of these payments based on a reasonable interest rate of 10 percent is assumed to be $38,000. This lease
The plan anticipates earning9% interest. How much will your annual benefits be?-8043 After 20 years, 100 shares of stock originally purchased for $1,000 was sold for $5,000. What was the annual yield on the investment? Choose the closest answer. -8.38% Mr. Blochirt is creating a university investment fund for his daughter.
B. C. D. 2 4. A summary of Max Company’s December 31, 2009, accounts receivable aging schedule is presented below: Age Group 0 - 60 days 61 - 90 days 91 - 120 days over 120 days Amount $60,000 22,000 3,000 1,000 Estimated Percentage Uncollectible 0.5% 1% 10% 50% On January 1, 2009, the allowance for uncollectible accounts had a credit balance of $1,000. During 2009, $950 of accounts receivable were written off as uncollectible. What is Max Company’s uncollectible accounts expense for 2009? A.
Nikko Corp's total common equity at the end of last year was $305,000 and its net income after taxes was $60,000. What was its ROE(Return on Equity)? (Points : 6) 16.87% 17.75% 18.69% 19.67% 20.66% Formula used in Return on Equity calculation is: 3. You have a chance to buy an annuity that pays $1,000 at the end of each year for three years. You could earn 5.5% on your money in other investments with equal risk.
The depreciation is based on the car’s life not of the lease agreement. Question # 2 In item #4 we assumed that the $100,000 bond with a 5% rate involves a 15 year-end annual interest payments of $5,000 (100,000*.05). The payments is assumed to be annual, at year end. In appendix B the value of 8% for 15 years is 8.559. so the present value of $5,000 is $42,795, for interest payments $100,000*.315 which is $31,500. In total it will be $74,295; since the investors paid $80,000 the yield rate is less than 8%.
An= a8+ (n-1) d A8= 100+ (8-1)25 A8=100+7(25) A8=100+200 A8=300 Now that we know what A8 is, we need to know what the sum of the sequence is from A1 to A8. Sn= n (a1+a8) over2 S8= 8(100+300) over2 S8= 8(400) over2 S8= 4(400) = 1600 Thus, the cost to build a 90 foot CB tower is $1600. A person deposited $500 in a savings account that pays %5 annual interests that is compounded yearly. At the end of 10years, how much money will be in the savings account?
https://hwguiders.com/downloads/fin-401-final-exam-solutions FIN 401 Final Exam Solutions 1. Your credit card company charges you 1.5% per month. What is the annual percentage rate (APR) on your account? What is the actual interest rate you pay to the credit card company per year? a. APR is 15%; the actual interest rate is 16.08% b. APR is 16.08%; the actual interest rate is 15% c. APR is 18%;the actual interest rate is 19.56% d. APR is 19.56%; the actual interest rate is18% 2.