11) The major securities traded in the capital markets a A) Treasury bills and c

Question

11) The major securities traded in the capital markets a A) Treasury bills and certificates of deposit. C) commercial paper and Treasury bills. tocks and bonds. D) bonds and commercial paper. 12) The average tax rate of a corporation with ordinary income of $8,000 and a tax liability of 12) $24,200 isn %. 13) a.- 13) Corporation X needs $1,800,000 and can raise this through debt at an annual rate of 10%, or preferred stock at an annual cost of 7%. If the corporation has a 35 % tax rate, what is the after-tax cost of a) debt and b) preferred stock? b. seo 14) Meese Paper Distributors, Inc. has before-tax earnings of $13,000,000. Using the Corporate 14) Tax Rate Schedule, calculate the amount of the total tax liability. 15) The analyst should be careful when conducting ratio analysis to ensure that 15) C A) the same accounting procedures were used. B) the overall performance of the firm is not judged on a single ratio. he dates of the financial statements being compared are the same. D) audited statements are used. E) all of the above. the current ratio eris the firm's liquidity. 6 plue the higher is the firm's liquidity.

Explanation / Answer

Assuming questions no 14 is only have to be done as all other questions have their answers written. As it is not clear that for which year taking base problem have to be solved. So I taking Corporate Tax Rate schedule (2005 through 2017)

Calculation of total tax liability

Particular $

On $ 50,000 @ 15% 7,500

On next $ 25,000 @ 25% 6,250

On next $ 25,000 @ 34% 8,500

On next $ 235,000 @ 39% 91,650

On next $ 9,665,000 @ 34% 3,286,100

On next $ 3,000,000 @ 35% 1,050,000

Total Tax liability $ 4,450,000

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