Questions from Financial Management

Q: Declan Ross wants to sell his business. The firm has no

Declan Ross wants to sell his business. The firm has no debt and earns an 8% return (ROE) on equity of $150,000. The business can borrow at an after tax rate of 5%. A consultant has advised that the b...

Q: During the last year Alpha Co had Net Income of $150

During the last year Alpha Co had Net Income of $150, paid $20 in dividends, and sold new stock for $40. Beginning equity for the year was $700. Calculate ending equity.

Q: Mints Entertainment, Inc. had Net Income of $170,

Mints Entertainment, Inc. had Net Income of $170,000 and paid dividends of $0.25 per share on its 100,000 shares of outstanding stock this year. At the end of the year its balance sheet showed retaine...

Q: Preston Road Inc. was organized was organized last year when its

Preston Road Inc. was organized was organized last year when its founders contributed $9 million and issued 3 million shares of $1.25 par value stock. The company earned $750,000 in its first year an...

Q: The Digital Systems Company was organized two years ago to take advantage

The Digital Systems Company was organized two years ago to take advantage of an internet opportunity. Investors paid $12 a share for 2 million shares with a $4 par value. In the next two years the c...

Q: The Coolidge family has taxable income of $165,000.

The Coolidge family has taxable income of $165,000. They live in a state in which income over $100,000 is taxed at 11%. What is their total effective (marginal) tax rate?

Q: Is the agency problem an ethical issue or an economic issue?

Is the agency problem an ethical issue or an economic issue?

Q: Use the following tax brackets for taxable income: Bracket …………………………

Use the following tax brackets for taxable income: Bracket ………………………… Tax Rate $0 - $10,000 ………………………… 15% $...

Q: Joan Petros reported taxable income in 20X2 of $150,000

Joan Petros reported taxable income in 20X2 of $150,000 which included the following transactions: 1. In June, 20X2, Joan sold 100 shares of stock for $40 per share. She had purchased them three mon...

Q: The Lindscomb family had the following income in 2015: Salaries

The Lindscomb family had the following income in 2015: Salaries: Mark …………… $63,500 Ashley …………. 57,900 Interest on investments: IBM bonds ……………………. $ 4,750...