Homework Answers
a. The firm pays $12,000 as interest
Interest is tax deductible, meaning we will deduct interest from earnings and then calculate tax whereas preference divided is a dividend for preference shareholders, it is an appropriation of profits hence it is not tax deductible.
Tax-deductible gives the obvious benefit that it gives more profit to common shareholders.
b. The firm pays $12,000 in preference dividends.
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With explanation PLZ.
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to...
Interest versus dividend expense Michaels Corporation expects earnings before in terest and taxes to be $50,000...
Interest versus dividend expense Michaels Corporation expects earnings before in terest and taxes to be $50,000 for the current period. Assuming an ordinary tax rate of 35%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,000 in interest. b. The firm pays $12,000 in preferred stock dividends. 2-5
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $41,000 for...
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $41,000 for the current period. Assuming a flat ordinary tax rate of 29%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $11,800 in interest. b. The firm pays $11,800 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute...
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $48,000 for...
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $48,000 for the current period. Assuming a flat ordinary tax rate of 30%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,500 in interest. b. The firm pays $12,500 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute...
Interest versus dividend expense Michael Corporation expects coming before rest and takes to be $52.000 for...
Interest versus dividend expense Michael Corporation expects coming before rest and takes to be $52.000 for the current period. Assuming a fat ordinary tax rate of 30%, compute the firm's comings after and earnings for common stockholders earings where and preferred stock vidends any under the following conditions Therm pays $12 300 in interest The firm pays $12.300 in preferred stock dividends Complete the fragment of Michael Corporation's income statement below to compute the firm's earnings athers and carings viable...
With explanation PLZ. Interest versus dividend income During the year just ended, Shering Distributors, Inc., had...
With explanation PLZ.
Interest versus dividend income During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the year it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 inincome from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock. a. Calculate the...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $29,000 in income from interest on bonds it held in Zig Manufacturing and received $29.000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
Please show me on excel. Interest versus dividend income Last year, Shering Corporation had pretax earnings...
Please show me on excel. Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $490,000. In addition, it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering faces a flat 21% tax rate and is eligible for a 50% dividend exclusion on its Tank Industries stock. Calculate the firm’s tax on its operating...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $485,000. In...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $485,000. In addition, it received S28,000 in income from interest on bonds it heid in Zig Manufacturing and a. Calculate the firm's tax on its operating eamings only b. Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds c. Find the tax and the after-tax amount attributable to the dividend income from the Tank Industries, Inc., common stock. d....
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest...
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest expense Sales Selling and administrative expense Taxes value: 20.00 points Lemon Auto Wholesalers had sales of $740,000 last year, and cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $18,000 and interest expense for the year was $11,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes. Lemon Auto...
Interest versus dividend expense Michaels Corporation expects earnings before in terest and taxes to be $50,000 for the current period. Assuming an ordinary tax rate of 35%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,000 in interest. b. The firm pays $12,000 in preferred stock dividends. 2-5
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $41,000 for the current period. Assuming a flat ordinary tax rate of 29%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $11,800 in interest. b. The firm pays $11,800 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute...
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $48,000 for the current period. Assuming a flat ordinary tax rate of 30%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,500 in interest. b. The firm pays $12,500 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute...
Interest versus dividend expense Michael Corporation expects coming before rest and takes to be $52.000 for the current period. Assuming a fat ordinary tax rate of 30%, compute the firm's comings after and earnings for common stockholders earings where and preferred stock vidends any under the following conditions Therm pays $12 300 in interest The firm pays $12.300 in preferred stock dividends Complete the fragment of Michael Corporation's income statement below to compute the firm's earnings athers and carings viable...
With explanation PLZ.
Interest versus dividend income During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the year it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 inincome from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock. a. Calculate the...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $29,000 in income from interest on bonds it held in Zig Manufacturing and received $29.000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $485,000. In addition, it received S28,000 in income from interest on bonds it heid in Zig Manufacturing and a. Calculate the firm's tax on its operating eamings only b. Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds c. Find the tax and the after-tax amount attributable to the dividend income from the Tank Industries, Inc., common stock. d....
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest expense Sales Selling and administrative expense Taxes value: 20.00 points Lemon Auto Wholesalers had sales of $740,000 last year, and cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $18,000 and interest expense for the year was $11,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes. Lemon Auto...
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