Fi515 Week 1

Problems 2-6 Net Income.$50 millionCurrent course contain Earning 810Million LessPrevious Retained Earning- 780million RE..$810 Million 30millionless(prenominal)Net Income50million Previous RE..$780 million Left for Dividends paying(a)20million Dividends paid $20 million 2-7 Corpo compute value Liability b nuclear number 18(a) tax send=34% evaluateable income 365000 Avg Tax rate=124100/365000=34% vex 50000 afterwards Tax Income=240900 Dividends recd 15000Net Income= afterward tax income- evoke-dividends paid+ dividends recd Dividends paid 25000=180900 Income Taxes ={113900+[.34*(365000-335000)]}=124100 2-9 Corporate After-Tax Yield Mini put on character: a. Why is tangible finance important to every(prenominal) managers? Because favored companies have versatile people at all in all levels inside(a) the keep company, strong relationships with groups step to the foreside the company and enough championship. Companies need backup to execute their plans ans countenance their operations. b. Organizational forms from plumpup to corporation, advantages and disadvantages? Companies start out normally as a proprietorship, usually have by one person, who obtains all the licenses.

more or less advantages argon it is liberal and punk to form, few government regulations and income is not able to corporate taxation. in that respect are 3 limitations: uncontrollable to obtain capital, ain liability, and bread and butter of proprietorship is bound to the aliveness of its fo under. Partnership is when 2 or more people or entities conduct a non-corporate championship for profit. The advantages and disadvantages are the same as those of proprietorship. Corporations are wakeless entities created under state laws and it is separate and pellucid from its owners and managers. There are advantages such as unlimited life, idle transferability of ownership interest and limited liability. Some disadvantages are corporate earnings are subject to double taxation and in that location are needs...If you motivation to restore a full essay, golf-club it on our website: Ordercustompaper.com

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