QUESTION 4 10 points Save Answer \"Consider a S corporation. The corporation ear

Question

QUESTION 4 10 points Save Answer "Consider a S corporation. The corporation earns $3.25 per share before taxes. The corporate tax rate is 40%, the tax rate on dividend income is 13%, and the personal income tax rate is set at 30%. How much is the total effective tax rate on the corporation earnings?Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer, or if the answer is $500, write enter 500 as an answer." QUESTION 5 10 points Save Answer "Last Year, a corporation had a book value of equity of $300 million of USDs, 2.5 million shares outstanding, and a market price of $30 per share. The corporation also had cash of $2.5 million of USDs, and total debt of $250 million USDs. What was the corporation's market capitalization, in million USDs? Note: Express your answers in strictly numerical terms. QUESTION 6 10 points Save Answer "Last Year, a corporation had a book value of equity of $300 million of USDs, 2.5 million shares outstanding, and a market price of $30 per share. The corporation also had cash of $2.5 million of USDs, and total debt of $250 million USDs. What was the corporation's market-to-book ratio?Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer, or if the answer is $500,000 write enter 500000 as an answer

Explanation / Answer

5) Market Capitalization = No. of shares X Market price per share = 2.5X30 = 75 Million USD 6) Market / Book ratio = (2.5X30/300) = 0.25

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.