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.
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 total amount is $1,517,391 |13. Tuttle Buildings Inc. has decided to go public by selling $6,000,000 of new common stock. Its | |investment bankers agreed to take a smaller fee now (6% of gross proceeds versus their normal 10%) in exchange for a 1 year option to | |purchase an additional 250,000 shares at $7.00 per share. The | |Investment bankers expect to exercise the option and purchase the 250,000 shares in exactly one year, when the stock price is forecasted to| |be $6.50 per share. However, there is a chance that the stock | |price will actually be $12.00 per share one year from now.
Question: : (TCO D) On December 31, 2010, Irey Co. has $2,000,000 of short-term notes payable due on February 14, 2011. On January 10, 2011, Irey arranged a line of credit with County Bank which allows Irey to borrow up to $1,700,000 at one percent above the prime rate for three years. On February 2, 2011, Irey borrowed $1,700,000 from County Bank and used $300,000 additional cash to liquidate $1,700,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2010 balance sheet which is issued on March 5, 2011 is 9. Question: : (TCO D) Tender Foot Inc. is involved in litigation regarding a faulty product sold in a prior year.
Last year, because the price of oil had raised to $150 a barrel many CUPE members lost monthly flying time. To cut its losses, the airline has already cancelled many flights to US and European cities. It look this is not going to be easy year for our domestic air line. Beside, surviving harsh economy, Air Canada has to also co-operate with the union. Disagreement with workers can make things much
FBN has made significant investments (property, plant and equipment) on account, thereby getting into financial trouble by owing their creditors quite a bit of money. FBN made too many investments (on account) and their cost of services increased faster than their sales. Yet another indicator of financial woes is the Profitability Analysis. By observing the Return on Assets, we can see that in two years, the ROA declined from 7.5% to 0%. Such a decline (and such a low percentage) indicates that management is not efficient in employing the company’s assets to make a profit.
The lagging performance of Disney movies in the 2000’s combined with the combination of the outstanding performance of Pixar films left Disney with a decision to make: to purchase Pixar or to continue with their current partnership? Brief history of the firms: Walt Disney began his company in the 1930’s, and it was not long before he had created the first ever animated feature film. The 1934 release of Snow White and the Seven Dwarfs was the movie that set the standard for Disney, both because it was the first movie of its kind technologically, but also because it was the first time that Disney stocked store shelves with memorabilia around the time of the film’s release. This move would become a trademark of Disney operations. As the firm grew, generating ancillary revenues based on their movies became vital to the success of the company.
On January 1, 2008, it increased to $6.79. On January 1, 2009, another increase is scheduled to raise the rate to $7.21 per hour. Employers whose employees receive tips may credit the tips received by a tipped employee toward the minimum wage, but only up to $3.02 per hour, the amount allowed under federal law. In other words, a Florida employer must pay a tipped employee at least $3.77 per hour in addition to his or her tips during 2008, provided (a) the employee is allowed to keep all of his or her tips and the tips received are sufficient to make up the difference between the cash wage paid and the required
The collapse of the housing market and unemployment caused the most damage. Between 1991 to 1992 unemployment had gone back up to 2.6 million. Negative equity meant home owner were paying mortgages far higher than their homes were worth. Many people could simply not keep up with the increased prices and resulted in them losing their homes due to the bank repossessing them. The recession hit close to home for the Tories, effecting the middle class not just the working class of the industrial north.
The company as a whole earned more than $35 billion in 2007, about $11 billion of which came from its parks and resorts around the world, including those in California. Walt Disney, the company’s founder, had famously spelled out the resort’s vision when he said, “I don’t want the public to see the world they live in while they’re in Disneyland. I want them to feel they’re in another world.” Anaheim, located in Orange County, was a sprawling metropolis of 350,000 that had grown rapidly with its tourism industry. In the early 1990s, the city had designated two square miles adjacent to Disneyland as a special resort district, with all new development restricted to serving tourist needs, and