According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.

Required:
Calculate the employer's payroll taxes.

Answers

Answer 1

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.

Answer:

$9800

Explanation:

This question requires us to calculate the employer's payroll taxes

His social security tax = $110000*6.0%

= 110000x0.06

=$6600

His Medicare tax = $110000*1.5%

= 110000*0.015

= $1650

His state and federal unemployment tax = 25000 dollars

State = 25000x5.4%

= $1350

Federal = 25000x0.8%

= $200

Total employers payroll tax

$(6600+1650+1350+200)

= $9800


Related Questions

Department S had 700 units 70% completed in process at the beginning of the period, 8,800 units completed during the period, and 900 units 37% completed at the end of the period. What was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.
a. 9,543.
b. 8,310.
c. 8,100.
d. 8,643.

Answers

Answer:

d. 8,643

Explanation:

Calculation to determin the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories

Units Completed During the period 8,800 units

Add Units Completed at the end 333 units

(900 units *37% )

Less Units Completed at the beginning 490 units

(700 units* 70)

Number of equivalent units 8,643

Therefore the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories is 8,643

________ refers to a method of matching a single project of a company to another company with a single business focus in an effort to assign an appropriate level of risk to the project. A. Outside assignment B. Ghosting C. Subjective assignment D. Pure play

Answers

The method that should be matched the individual project of a company to the other company having an individual business focus for allocating a risk level is pure-play.

The information related to the pure-play is as follows:

It is to be focused on one business line only.It is distinct from the expanded companies where there are diversify product lines and revenue sources. It determined the beta coefficient because it compared to the other project as an individual business focus.

So it cannot be as the outside assignment, ghosting, and subjective assignment.

Therefore we can conclude that the method that should be matched the individual project of a company to the other company having an individual business focus for allocating a risk level is a pure-play.

Learn more about the level of risk here: brainly.com/question/10820234

Jebali Company reports gross income of $340,000 and other property-related expenses of $229,000 and uses a depletion rate of 14%. Calculate Jebali's depletion allowance for the current year. $fill in the blank 1

Answers

Answer:

15,540

Explanation:

Depletion = depletion rate x (gross income - expenses)

0.14 x ($340,000 - $229,000) = 15,540


The debt to owners' equity ratio is a common type of liquidity ratio

Answers

Answer: No

Explanation: D/E is a solvency ratio. Liquidity ratios are quick and current ratios.

Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its first year of operations ending December 31, 20Y3. Zell Company provides customers refunds and allowances for any damaged merchandise. At the end of the year, Zell Company estimates that customers will request refunds and allowances for 1.5% of sales. Assume that on February 3, 20Y4, Zell Company paid a customer a $5,000 cash refund for damaged merchandise. Required: (a) Journalize the adjusting entry on December 31, 20Y3, to record the expected customer refunds and allowances\.\* (b) Journalize the entry to record the cash refund\.\* *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Answers

Solution :

a).      Date                 Description                       Debit($)                   Credit($)

  31st Dec 20Y3           Sales                              27,000

                              (1,800,000 x 1.5%)        

                             Customer refunds payable                                    27,000    

                             

                             Estimated sales return           16,000

                              inventory

                           Cost of merchandise sold                                        16,000

b).     Date                 Description                       Debit($)                   Credit($)

  3 Feb, 20Y4   Customer refund payable        5000

                          Cash                                                                           5000

                         Merchandise inventory              3100

                        Estimated return inventory                                        3100

Samir is a self-employed marketing consultant. He had no income from January through March 2020. His April through December 2020 income subject to SE tax is $55,000.
Samir's SE tax for 2020 is $7,771 [$55,000 x 0.9235 x 0.153 = $7,771]. Samir may reduce his estimated tax payments by how much? Hint: USE Form Schedule SE to help you find the answer.

Answers

Answer:

$3,886

Explanation:

Since SELF EMPLOYMENT TAX is 15.3% of your wages which is why the Internal Revenue Service (IRS) make it possible for you to deduct your employer equal portion of your self employment taxes that the employer pays during the year which is 7.65% Calculated as (15.3%/2) which therefore means that Samir may reduce his ESTIMATED TAX PAYMENTS by $3,886 [$55,000 x 0.9235 x 0.0765 = $3,886] while the remaining 7.65%( 15.3% -7.65%) are not deductible because they correspond to employee taxes.

Therefore he may reduce his ESTIMATED TAX PAYMENTS by $3,886.

You are offered an investment with returns of $ 1,371 in year 1, $ 3,623 in year 2, and $ 3,830 in year 3. The investment will cost you $ 8,022 today. If the appropriate Cost of Capital is 7.4 %, what is the Net present Value of the investment

Answers

Answer:

$-512.90

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.   

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-8,022

Cash flow in year 1 = 1371

Cash flow in year 2 = 3623

Cash flow in year 3 = 3830

I = 7.4

NPV = $-512.90

To determine NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

ai là người giàu nhất thế giới

Answers

Answer:

Jeff Bezos

Explanation:

Jeff Bezos là người sáng lập Amazon và có giá trị tài sản ròng là 205 tỷ USD

Đây là danh sách các nhà vận chuyển tiền được xếp hạng:

https://www.forbes.com/real-time-billionaire/#114ff8bb3d78

Jeff Bezos is the founder of Amazon and has a net worth of $205 billion Here's a list of billionaire's ranked:

https://www.forbes.com/real-time-billionaires/#114ff8bb3d78

10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments are made semi-annually. The market rate for this type of bond is 12%. Using present value tables, calculate the issue price of the bonds

Answers

Answer:= $471,325

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value at maturity

Coupon payments = 500,000 * 11% * 1/2 years = $27,500  

Periodic yield = 12%/ 2 = 6% per semi annual period  

Periods = 10 * 2 = 20 semi annual periods

Coupon payment is constant so it is an annuity.  

Price of bond = Present value of annuity + Present value of face value at maturity  

= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods  

= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰  

= $471,325

Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory rate based on direct labor hours. Information for the month of May, Bugaboo's first month of operations, follows:
Budgeted Unit Volume Direct Labor Hours per unit
Fluffs 80,000 boxes 0.10
Crinkles 60,000 boxes 0.20
Snaps 20,000 boxes 0.50
Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit.
Bugaboo's budgeted overhead costs for May are:
Indirect Labor $280,000
Utilities $65,000
Supplies $45,000
Depreciation $30,000
Total $420,000
Assume that Bugaboo sells all the boxes it produces in May. Round your answers to two decimal places, if necessary.
a. Compute Bugaboo's plantwide factory overhead rate for May.
$_______per direct labor hour
b. Compute May's product cost for each type of cookie.
Cost per box Fluffs Crinkles Snaps
Total manufacturing cost $____ $____ $ ____

Answers

Answer:

Bugaboo Co.

a. Bugaboo's plantwide factory overhead rate for May.

$14 per direct labor hour

b. May's product cost for each type of cookie.

                                                 Fluffs      Crinkles       Snaps

Cost per box                            $3.00       $4.90         $11.55    

Total manufacturing cost   $240,000  $294,000   $231,000

Explanation:

a) Data and Calculations:

Budgeted Unit Volume      Direct Labor Hours   Total DLH

                                                      per unit

Fluffs            80,000 boxes             0.10                   8,000

Crinkles       60,000 boxes            0.20                  12,000

Snaps          20,000 boxes            0.50                  10,000

Total direct labor hours for the three products = 30,000

Budgeted overhead costs for May are:

Indirect Labor      $280,000

Utilities                  $65,000

Supplies                $45,000

Depreciation        $30,000

Total                   $420,000

Overhead rate per direct labor hour = $14 ($420,000/30,000)

                                              Fluffs           Crinkles          Snaps

Direct labor hours                 8,000            12,000         10,000

Direct materials per unit       $0.75             $0.40          $0.30

Direct materials                $60,000        $24,000        $6,000

Direct labor costs               68,000         102,000        85,000

Overhead allocated          112,000          168,000      140,000

Total production costs $240,000       $294,000   $231,000

Cost per box                       $3.00              $4.90         $11.55    

Summarize the Product Development Process

Answers

The product development process encompasses all steps needed to take a product from concept to market availability. This includes identifying a market need, researching the competitive landscape, conceptualizing a solution, developing a product roadmap, building a minimum viable product, etc.

Bluegill Company sells 14,000 units at $240 per unit. Fixed costs are $168,000, and operating income is $1,176,000. Determine the following:
a. Variable cost per unit.
b. Unit contribution margin.
c. Contribution margin ratio.

Answers

Answer:

a. Variable cost per unit:

= (Sales - Fixed costs - Operating income) / number of units sold

= ((14,000 units * 240) - 168,000 - 1,176,000) / 14,000

= 2,016,000 / 14,000

= $144 per unit

b. Unit contribution margin:

= Selling price - Variable cost per unit

= 240 - 144

= $96

c. Contribution margin ratio:

= Unit contribution margin / Selling price

= 96 / 240

= 40%

Your aunt has promised to give you $5,000 when you graduate from college. You expect to graduate three years from now. If you speed up your plans to enable you to graduate two years from now, the present value of the promised gift will: Multiple Choice be less than $5,000. remain constant. decrease. Incorrect equal $5,000. increase

Answers

Answer:

The present value of the promised gift will:

be less than $5,000.

Explanation:

The present value of $5,000 to be received in three years' time from today is less than $5,000 received.  This is explained by the time value of money concept.  If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751).  This means that $5,000 received in year 3 is less than $5,000 received today.

The present value of the promised gift will be less than $5,000 If a person speeds up his/her plans to enable to graduate two years from now, by applying the concept of the time value of money.

What is the time value of money?

The time value of money is a fundamental concept of finance. This concept maintains that money or cash in the present is worth more than the identical sum of money to be accepted in the future.

In the above case, The present value of $5,000 to be received in the period of three years from today would be less than $5,000 received.

In the above case, the concept of the time value of money is applied. It means that if the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be:

[tex]=\$5,000 \times 0.751\\= \$3,755[/tex]

This means that $5,000 received in year 3 is less than $5,000 received today.

Therefore, option A is correct.

To learn more about the time value, refer to:

https://brainly.com/question/95926

Mott Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $37, $47, and $57, respectively Variable costs per unit are $30, $31, and $34, respectively. Fixed costs are $456,000. What is the break-even point in composite units?
a) 1.239 composite units
b) 1357 composite units
c) 2763 composite units
d) 4,606 composite units.

Answers

Answer:

6,000 composite units

Explanation:

                                                 A    B     C      Total

Selling price per unit              37   47    57  

Less: Variable cost per unit   30   31     34

CM per unit                              7     16     23  

Sales mix                                  3     2       1

CM per sales mix                    21    32    23    76

Break even in composite unit = Fixed cost / CM per sales mix

Break even in composite unit = $456,000 / 76

Break even in composite unit = 6,000

Sarah inherited a large amount of cash after her grandparents passed away. She would rather overdraw her bank account and max out her credit cards, then deposit the cash into her bank account. This is an example of a consumer ________.

Answers

Answer:

a) failing to treat money as fungible

Explanation:

In the given situation, since sarah has been use the money in the form of credit cards rather using the larger cash amount which is in her hand. So this represents that she should be failed for using the 2 forms of money also the fungibility of money means the various forms of money could be used interchangable.

Therefore the option a is correct

Your grandfather has offered you a choice of one of the three following alternatives: $11,500 now; $5,700 a year for five years; or $71,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

Required:
a. Assuming you could earn 9 percent annually, compute the present value of each alternative.
b. Which alternative should you choose?

Answers

Answer:

1. $11,500

2. $22,171.01

3. $46,145.13

option 3. This is because it has the highest present value

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

option 2

Cash flow each year from year 1 to 5 = $5,700

I = 9

PV = 22,171,01

OPTION 3

Cash flow in year 5 = 71,000

I = 9

PV = 46,145.13

To determine PV using a financial calculator take the following steps:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

The demand and supply functions for basic cable TV in the local market are given as: Calculate the consumer and producer surplus in this market. If the government implements a price ceiling of $15 on the price of basic cable service, calculate the new levels of consumer and producer surplus. Are all consumers better off

Answers

Answer: Hello your question is poorly written attached below is the complete question

answer:

a) Cs = 800,000 ,  Ps = 1,500,000

b) Cs = 1437500,  Ps = 525,000

Explanation:

Demand function ( Qd ) = 200,000 - 4000 P

supply function ( Qs ) = 20,000 + 2000 P

at equilibrium :  200,000 - 4000P = 20,000 + 2000P

therefore ; P = 180,000 / 6000 = 30

Q = 20,000 + 2000 ( 30 ) = 80,000

a) Determine consumer and producer surplus in the market

consumer surplus ( Cs ) This is the area above the price and below the demand curve  = 1/2 * ( 50 - 30 ) 80,000 = 800,000

producer surplus ( Ps ) This is the area above supply and below price

= 30 * ( 80,000 ) -  1/2 (80,000 - 20,000 ) (30)

= 1,500,000

b) Determine the new levels of consumer and producer surplus with a price ceiling of $15

Pc (ceiling price ) = $15

Qd = 200,000 - 4000 ( 15 )  = 140,000

Qs = 20,000 + 2000 ( 15 ) = 50,000

∴ New consumer surplus = area ( a , Pc, b, d )

= ( 30 - 15 ) (50,000) + 1/2(50-30) (80,000) - 1/2 (80,000 - 50,000 ) (37.5 - 30)

   = 1437500

New producer surplus = area ( Pc , b, e 0 )

= ( 15 ) ( 50000) - 1/2 ( 50,000 - 20,000 ) (15)

= 525,000

Components of the master budget are the operating budget, the capital expenditures budget, and the financial budget. Group of answer choices True False

Answers

Answer: True

Explanation:

A master budget refers to the lower-level budgets that is within an organization, and the financial plan, the cash flow forecasts, and the budgeted financial statements.

The master budget consists of three main components which are the operating budget, financial budget and the capital expenditures budget.

Therefore, the statement is true.

Smith Construction,Inc.just paid a $2.78 dividend.The dividend is expected to grow by 4% each year for the next three years.After that the company will never pay another dividend ever again.If your required return on the stock investment is 10%,what should the stock sell for today?
A) $7.46
B) $28.91
C) $46.33
D) $15.63

Answers

Answer:

A) $7.46

Explanation:

The computation of the stock sell for today is given below:

D1 = 2.78 × (1.04)

= 2.89

D2 = 2.89 × (1.04)

= 3.01

D3 = 3.01 × (1.04) = 3.13

Now the price of the stock is

= 2.89 ÷ (1.1) + 3.01 ÷ (1.1)^2 + 3.13 ÷ (1.1)^3

= $7.46

hence, the correct option is a.

The same should be considered and relevant

Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:
Setting up equipment $3,000
Machining $15,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. Excellent Laptops Outstanding Computers
Direct Labor $25,000 $10,000
Direct Materials $20,000 $5,000
Expected Production in Units 3,000 3,000
Machine Hours 850 2,000
Setup Hours 80 75
Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round your answer to two decimal places.)
a. 0.25
b. 0.48
c. 0.75
d. 0.45
e. 0.90

Answers

Answer:

Alpha Technology

Outstanding Computer's consumption ratio for setup hours is:

b. 0.48

Explanation:

a) Data and Calculations:

Overhead activities and costs:

Setting up equipment $3,000

Machining $15,000

                                            Excellent      Outstanding

                                             Laptops        Computers

Direct Labor                         $25,000         $10,000

Direct Materials                   $20,000          $5,000

Expected Production in Units 3,000             3,000

Machine Hours                           850             2,000

Setup Hours                                  80                  75

Total setup hours = 155 hours

Outstanding Computer's consumption ratio for setup hours = 75/155 * 100

= 48%

The Cullumber Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follows:

Salaries $7,000 per month
Utilities $1,000 per month
Depreciation $1,100 per month
Maintenance $1,508 per month
Maid service $13 per room
Other costs $26 per room

Required:
a. Determine the inn's break-even point in number of rented rooms per month.
b. Determine the inn's break-even point in dollars.

Answers

Answer:

a. Breakeven point in number of rented rooms:

= Fixed costs / Contribution margin

Fixed cost = Salaries per month + Utilities + Depreciation + Maintenance

= 7,000 + 1,000 + 1,100 + 1,508

= $10,608

Contribution margin:

= Rent price - Maid service - Other costs

= 65 - 13 - 26

= $26

Breakeven point in rented rooms:

= 10,608 / 26

= 408 rooms

b. Breakeven point in dollars:

= Fixed costs / Contribution margin ratio

= 10,608 / (26 / 65)

= 10,608 / 40%

= $26,520

A frozen foods company changes an ingredient to meet a new government standard. This is an example of
O following a federal regulation.
O lowering prices for customers.
O reducing the risk for consumers.
o creating a new product.

Answers

Following a federal regulation
The answer would be:

O following a federal regulation.

It’s not lowering prices, because there’s no mention of prices in the question, and it wouldn’t be creating a new product if it’s altering a single ingredient. It although it could possibly reduce risk for consumers, the question doesn’t directly say anything about that, so the answer would have to be the top one.

Jennifer is the sole beneficiary of an irrevocable trust created by her father. Income and principal may be distributed to her at the trustee's discretion. Jennifer has a 5-and-5 power of appointment over the trust. Jennifer died last month at which time the trust was valued at $2,500,000. She did not withdraw any money from the trust this year. How much of the trust was included in her estate at death

Answers

Answer:

$125,000

Explanation:

Calculation to determine How much of the trust was included in her estate at death

Since she has 5-and-5 power of appointment over the trust which means that she has the ability to withdraw the GREATER of 5% of fair market value (fmv) of the trust or the amount of $5,000.

Hence, the amount that was included in her estate at death will be $125,000 which is calculated as (5%*trust valued amount of $2,500,000)

Therefore How much of the trust was included in her estate at death is $125,000

An effective price ceiling will cause consumers to: Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. check all that apply gain surplus from additional trades.unanswered lose surplus from paying a lower price.unanswered lose surplus from trades that no longer take place.unanswered gain surplus from paying a lower price.unanswered

Answers

Answer:

gain surplus from paying a lower price

Explanation:

An effective price ceiling will cause consumers to "gain surplus from paying a lower price."

This is based on the idea that an effective price ceiling usually leads to prices being below the equilibrium price or equates to a lower price.

At this point, the buyers demand more of the products, while the sellers have a lower incentive to produce more. And therefore, the quantity demanded will exceed the quantity supplied.

Hence, consumers gain excess (more demands) by paying a lower price.

Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 24 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June:

Actual number of oil changes performed: 980
Actual number of direct labor hours worked: 386
Actual rate paid per direct labor hour: $14.50
Standard rate per direct labor hour: $14.00

Required:
a. Calculate total direct labor variance for oil changes in June?
b. Calculate The Direct Labor Rate Variance (LRV) and Direct Labor efficiency variance (LEV)

Answers

Answer:

that hurts my brain when I try to think of the answer

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,080,000, and it would cost another $19,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $626,000. The machine would require an increase in net working capital (inventory) of $18,500. The sprayer would not change revenues, but it is expected to save the firm $436,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%. Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
What is the Year-0 net cash flow?

Answers

Answer:

$1,117,500

Explanation:

The net cash flow required immediately( year zero) to get the project underway comprises the sprayer's base price, its installation cost as well as the net working capital of $18,500.

The above-highlighted items are the ones cash outflows required in year zero while other ones are cash inflows or outflows required subsequently.

The net cash flow in year zero is computed thus:

Year-0 net cash flow=$1,080,000+$19,000+ $18,500

Year-0 net cash flow=$1,117,500  

XZYY, Inc. currently has an issue of bonds outstanding that will mature in 16 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 13.0% with annual coupon payments. The bond is currently selling for $1,176. The bonds may be called in 3 years for 113.0% of the par value. What is your expected quoted annual rate of return if you buy the bonds and hold them until maturity

Answers

Answer: 10.66%

Explanation:

The expected quoted annual rate of return when the bonds are bought and being held until maturity will be calculated thus:

Coupon payment = 1000 × 13% = 130

The Yield to Maturity formula will be:

= Rate(maturity period, coupon payment, -price, fave value)

= Rate(16, 130, -1176, 1000)

Yield to Maturity = 10.66%

Therefore, the expected quoted annual rate of return is 10.66%.

An owner can lease her building for $160,000 per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost is $70,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of:_______.
a. Accounting profits.
b. Economic profits.

Answers

Answer:

a. Accounting profits.

Account profit = Revenue - explicit cost

= 160,000 - 55,000

= $105,000

Present value of $105,000 per year for 3 years is:

= 105,000 * Present value interest factor of an Annuity, 3 years, 5%

= 105,000 * 2.7232

= $285,936

b. Economic profit

Economic profit = Revenue - explicit cost - implicit cost

= 160,000 - 55,000 - 70,000

= $35,000

Present value of $35,000 per year for 3 years:

= 35,000 * Present value interest factor of an Annuity, 3 years, 5%

= 35,000 * 2.7232

= $95,312

Note: The profits were treated as annuities as they were constant.

Here and After Corporation plans a new issue of preferred stock. Similar risk stock currently offers an annual return to investors of 18.0%. The company wants the stock to sell for $743.00 per share. What annual dividend must the company offer?
a. $192.85.
b. $4,127.78.
c. $148.45.
d. $133.74.
e. $3,809.94.

Answers

Answer: d. $133.74

Explanation:

The dividend paid to preferred shareholders is constant and based on the annual rate of return on the stock. If they plan to sell at a price of $743 per share, the dividend will be:

Dividend = Annual rate of return on stock * Price of stock

= 18% * 743

= $133.74

ABC Corp. issued $100,000 of bonds at a premium; as a result, the company: A. received more than $100,000. B. received less than $100,000. C. will pay the bondholders more money on the maturity date than it received on the issue date. D. received $100,000.

Answers

Answer:

A

Explanation:

If the yield to maturity is greater than the bonds coupon rate the bond is selling at a discount. Bond issuers would receive less than the face value of the bond as payment when the bond is sold  

If the yield to maturity is less than the bonds coupon rate the bond is selling at a premium. Bond issuers would receive a greater sum than the face value of the bond as payment when the bond is sold  

If a bond’s coupon rate is equal to its yield to maturity, then the bond is selling at par. Bond issuers would receive an amount equal to the face value of the bond as payment when the bond is sold  

Other Questions
what was a political cause of the french revolution? a. the division of people b. the practice of absolute monarchy Describe events that explain the border differences between these maps. Use information from the maps and the lesson in your response. Use complete sentences.Besides land, what did the United States gain from expansion? Use information from the maps and the lesson in your response. Use complete sentences. which of the following inequalities represents all values of x for which the quotient below is defined? sqrt 21(x-1) divided by sqrt 7xA. x < -1B. x > -1C. x < 1D. x > 1 b) How do ophthalmologists help sick people? Write a full sentence please, 20 points!!!What is a byline?What is a pullquote?What are three tips to writing a good headline?What is active voice? What is passive voice?What is attribution? Why is it important to journalists? Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in an automobile accident where Pat dies instantly and Karen dies 5 days later. Which policy provision will protect the rights of the contingent beneficiary to receive the policy benefits sejam berapa minit? The United States declared war on Germany a in response to demands by American munitions makers. b because it appeared that France was about to surrender. c because Wall Street bankers demanded it. d after Mexico signed an alliance with Germany. e after German U-boats sank four unarmed American merchant vessels. If Sarah had skin vesicles on the anterolateral region of her neck, which peripheral nerve is infected by the virus? To which peripheral nerve plexus does this nerve belong? Plz this is due today help me explain the answer A wire carries a current of 0.66 A. This wire makes an angle of 58 with respect to a magnetic field of magnitude 5.50 10-5 T. The wire experiences a magnetic force of magnitude 7.10 10-5 N. What is the length of the wire? Find the rare of change for the situations , You run 7 miles in one hour and 14 miles in two hours 5sinA=4, find the value of tanA. At the beginning of last year an investor purchased ABC Corporation at $100 per share. During the year, the firm made a 4 for 1 split, and then paid dividends of $1.50 per share. At the end of the year, the investor sold the shares at $26 per share. What is the rate of return? Prepare a art integrated project on deforestation in Goa and Jharkhand in India What is silly means OMG!! Im stuck on 4a) b) c)Help please Dean Halverson recently read that full-time college students study 20 hours each week. She decides to do a study at her university to see if there is evidence that students study an average of more than 20 hours each week. A random sample of 35 students were asked to keep a diary of their activities over a period of several weeks. It was found that the average number of hours that the 35 students studied each week was 21.1 hours. The sample standard deviation of 4.3 hours.Find the p-value. The p-value should be rounded to 4-decimal places. a vector starts at the point (0.0) and ends at (2,-7) what is the magnitude of the displacement Why did Meiji leaders expand Japans military and heavily invest in industrialization?