questions, For Multiple choice NOTE: 37 JUST INSERT THE SCANTRON INSIDE THE TEST
ID: 2821267 • Letter: Q
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questions, For Multiple choice NOTE: 37 JUST INSERT THE SCANTRON INSIDE THE TEST, AND THE SCANTRON AND LEAVE WHEN YOU ARE DONE.YOU SHEET OF STANDARD SIZE PAPER AS Y SYLLABUS FOR INSTRUCTIONS). QUESTIONS: TIME LIMIT: 70 minutes: RETURN THE TEST WITH OUR REFERENCE WITH ALLOWED SHEET (SEE MY which of the following items found in an income statement of a o ance sheet of the to connect that S amount in a related item in the bala company d)Long term debt a) Cash b)Accounts Payable depreciation Using the data given below for GLOBAL Conglomerate corporation, for year 2005. please answer questions 2 to 7: Current Liabilities: $48 million Long term Debt $107.5 million stock holder equity: 22.2 Million Total liability and stockholder equity: 177.7 million Net income after taxes: 2 million dollars for 2005. 2) Compute the book value per share for 2005. Firm has 3.6 million shares outstanding. A) 8.23 ()6.16 c)5.33 d) 10.29 hat is the percent of equity in the financial structure of this firm in 2005? )29.7% b)23.9% (0)12.5% D) 17.3% How much did the firm retain in 2005. Find amount retained in Just the year 2005; $1.25M b) S2M c) $2.75M d)5955,000 E)S1.55M od.a Firm paid $750,000 in dividends in 2005. 195Explanation / Answer
1-
Depreciation
2-
book value per share = stockholder equity/no of shares = 22.2/36
22200000/3600000
6.16
3-
% of equity = value of equity/total of liability and shareholders capital
22.2/177.7
12.5%
4-
earning retained
2-.75
1.25
5-
750000/2000000
37.50%
6-
750000/3600000
0.208333
2.60%
7-
PE ratio = price/EPS
25/.5555
45
EPS
2000000/3600000
0.555556
8-
tax on dividend income
98000*34%
33320
9-
return on home owner equity
10%*(1-tax rate)
6%
I will pay off my credit card debt and car loan because interest rate on these loans are more than the return on return on homeowner equity
10-
tax liability
113900 +(595000-335000)*34%
202300
average tax rate
tax liability/total income
34%
Marginal tax rate
34%
1-
Depreciation
2-
book value per share = stockholder equity/no of shares = 22.2/36
22200000/3600000
6.16
3-
% of equity = value of equity/total of liability and shareholders capital
22.2/177.7
12.5%
4-
earning retained
2-.75
1.25
5-
750000/2000000
37.50%
6-
750000/3600000
0.208333
2.60%
7-
PE ratio = price/EPS
25/.5555
45
EPS
2000000/3600000
0.555556
8-
tax on dividend income
98000*34%
33320
9-
return on home owner equity
10%*(1-tax rate)
6%
I will pay off my credit card debt and car loan because interest rate on these loans are more than the return on return on homeowner equity
10-
tax liability
113900 +(595000-335000)*34%
202300
average tax rate
tax liability/total income
34%
Marginal tax rate
34%
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