1) Happy Retailers, Inc. (MSR) has EBIT of= $250,000, interest expense of= $40,000, dividend income of $25,000, short term capital gains of= $15,000, and long term capital losses of= $18,000. Compute Happy Retailer’s income tax liability?
2) Frederickson Office provides recently reported= $13,500 of sales, $7,250 of operating costs other than depreciation, and $1,750 of depreciation. Company had no amortization charges and no non-operating income. It had= $9,000 of bonds outstanding that carry the 8.0% interest rate, and its federal-plus-state income tax rate was= 40%. How much was firm's taxable income, or earnings before taxes (EBT)?
3) Over years, Janjigian Corporation's stockholders have given $29,750 of capital, partially when they bought new issues of stock and partially when they approved management to retain some of firm's earnings. Firm now has= 2,500 shares of common stock outstanding, and it sells at the price of= $40.00 per share. How much value has Janjigian's management added to stockholder wealth over the years, that is, determine Janjigian's MVA?