3. Comment on how the price/earnings ratio is influenced by the earnings per share forecasts. 4. What is the “Market Capitalization” for your company? 5.
The combined taxes are lower under part b because the majority of the corporation's earnings are only subject to one level of tax (the individual tax on the salary). In part a the taxable income after salary is $200,000 but in part b it is $50,000 since the deduction of $150,000 is taken and this leads to only $50,000 that is taxed twice in part b. 66. [LO 3] In its first year of existence (year 1), Willow Corp. (a C corporation) reported a loss for tax purposes of $30,000. In year 2 it reports a $40,000 loss.
P5; The Trading Account; The trading account is an account that shows profits and losses for a business. There are three parts to the trading account, the first one is sales turnover and this is the money that is coming into the business by trading. The formula for sales turnover is quantity sold x the selling price. According to business alpha the sales turnover for this business is 3,057,000. The second component is the cost of sales which includes the costs directly linked to providing the trade.
Texaco stock is currently selling for $60 per share while Delta sells for $40 per share. You determine that the major factor that will impact your investment is the price of oil. After careful forecasting, you narrow the possible outcomes down to 3 major categories, each of which is equally likely to occur. Possibility Oil price increases Oil price unchanged Oil price decreases Texaco Stock pays a $4 per share dividend; stock price is $68 pays a $3 per share dividend; stock price is $60 pays a $2 per share dividend; stock price is $52 Delta Air Lines Stock pays no dividend; stock price is $32 pays a $2 per share dividend; stock price is $42 pays a $2 per share dividend; stock price is
What amount of unrealized inter-company profit must be deferred by Luffman? | | Your Answer: | | | $0 | | CORRECT | | | $8,400 | | | | | $28,000 | | | | | $52,000 | | | | | $80,000 | | | | | | Points Received: | 2 of 2 | | Comments: | | 2. | Question: | (TCO 1) Which of the following results in a decrease in the Equity in Investee Income account when applying the equity method? | | Your Answer: | | | Dividends paid by the investor | | | | | Net income of the investee | | INCORRECT | | | Unrealized gain on inter-company inventory transfers for the current year | | CORRECT ANSWER | | | Unrealized gain on inter-company inventory transfers for the prior year | | | | | Extraordinary gain of the investee | | | | | | Points Received: | 0 of 2 | | Comments: | | 3. | Question: | (TCO 1) In a situation where the investor exercises significant influence over the investee, which of the following entries is not actually posted to the books of the investor?
it represents the purchase price of a business that is about to be sold. D. it is the difference between the fair market value of the net tangible and identifiable intangible assets as compared with the purchase price of the acquired business. 42) Easton Company and Lofton Company were combined in a purchase transaction. Easton was able to acquire Lofton at a bargain price. The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Easton.
(0.5 points) $2,322.00 b. What is the total of the company's liabilities? (0.5 points) $1,125.00 c. What is the total owner equity? (0.5 points) $1,197.00 4. Calculate the following financial ratios.
Martinez uses the effective-interest method of amortizing bond premium. At the end of the first year, Martinez should report unamortized bond premium of: 1. Question: : (TCO C) Sisco Co. purchased a patent from Thornton Co. for $180,000 on July 1, 2007. Sisco amortizes the patent over a period of 10 years. Expenditures of $92,000 for successful litigation in defense of the patent were paid on July 1, 2011.
Delta Airline’s Cost of Capital A Case Study Part I: Compute Cost of Debt/Cost of Equity/ WACC • The beta of the stock is 0.90, based upon a regression of Delta stock returns against the S&P 500 Index. • The share price is $27.70, and there are 850,902,527 shares outstanding. Delta’s market cap is 23.57 billion. • The firm has $11,082 million in long-term debt on its balance sheet. Delta incurs a marginal corporate tax rate of 30%.
The stock currently sells for $31 per share. What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return _____ % 5. The Starr Co. just paid a dividend of $1.55 per share on its stock.