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F515 problems




Question;Statement of Retained Earnings;In its most recent financial statements, Newhouse Inc.;reported $50 million of net income and $810 million of retained earnings. The;previous retained earnings were $780 million. How much in dividends was paid to;shareholders during the year?;Intermediate Problems 7?11;(2-7);Corporate Tax Liability;The Talley Corporation had a taxable income of $365,000 from;operations after all operating costs but before (1) interest charges of;$50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and;(4) income taxes. What are the firm?s income tax liability and its after-tax;income? What are the company?s marginal and average tax rates on taxable;income?;(2-9);Corporate After-Tax Yield;The Shrieves Corporation has $10,000 that it plans to invest;in marketable securities. It is choosing among AT&T bonds, which yield;7.5%, state of Florida muni bonds, which yield 5% (but are not taxable), and;AT&T preferred stock, with a dividend yield of 6%. Shrieves?s corporate tax;rate is 35%, and 70% of the dividends received are tax exempt. Find the;after-tax rates of return on all three securities.


Paper#51559 | Written in 18-Jul-2015

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