Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Assistance with the following problems in excel with explanations of how the answer was derived please.

1. Little Books Inc. recently reported $3 million dollars of net income. Its EBIT was $6 million dollars, and its tax rate was %40. What was its interest expense? [Hint: write out the heading from the income statement and then fill in the known values. then divide $3 million dollars net income by (1-T)=0.6 to find the pre-tax income. The difference between EBIT and taxable income must be in the interest expense.]

2. Kendall Corners Inc. recently reported and EBITDA of 3.1 million dollars and depreciation of $500,000. What is its net cash flow? Assume it had no amortization expense.

3. The Tally Corporation had a taxable income of $365,000 from operations after all operating costs but before (1) interest changes of $50,000, (2) dividends received of $15,000 (3) dividends paid of $25,000 and (4) income taxes. What are the firms income tax liability and its after tax income? What are the company's marginal and average tax rates on taxable income?

4. The Went Corporation had $10.5 million of taxable income.
a. What is the firm's federal income tax bill for the year?
b.Assume the firm receives an additional $1 million of interest income from some bonds it owns. What is the tax on this interest income?
c. Now assume that Went does not receive the interest income but does receive an additional $1 million as dividends on some stock it owns. What is the tax on this dividend income?

5. the Moore's Corporation has an EBIT of $750,000. The company's depreciation expense is $200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company's net income? What is the company's net cash flow?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9279599

Have any Question?


Related Questions in Basic Finance

Lets say there are 10000 lawyers in the usa and 500 of them

Let's say there are 10,000 lawyers in the USA and 500 of them are Oreo cookie lovers. These 500 lawyers consume a total of 500 Oreo cookies in a given time period out of 2,000 cookies sold. What is the BDI for Oreo cooki ...

Consider the stock of abc inc a growth stock that will

Consider the stock of ABC Inc., a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 12 percent growth rate, thereafter. The stock has a required rate of return ...

Are there risks involved in investing in security markets

Are there risks involved in investing in security markets? Can someone explain what is a risk-return tradeoff? Lastly are risks ever mitigated with diversification and time?

When when is it appropriate to use the wac as the discount

When when is it appropriate to use the wac as the discount rate in capital budgeting

The free cash flows in millions shown below are forecast by

The free cash flows (in millions) shown below are forecast by Bailey Brothers. If the weighted average cost of capital is 11%, and FCF is expected to grow at a constant rate of 5% after Year 3 (i.e., Year 4 to infinity) ...

You borrow 165000 to buy a house the mortgage rate is 40

You borrow $165,000 to buy a house. The mortgage rate is 4.0 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you p ...

Cathy buys a house her principal residence for 2500000

Cathy buys a house (her principal residence) for $2,500,000, paying $500,000 down and borrowing the other $2,000,000 at 5% interest. If her interest expense for the year is $100,000, how much will her maximum deduction f ...

What is the yield to maturity ytm on a 5-year 1000 bond

What is the yield to maturity (YTM) on a 5-year, $1,000 bond that pays annual payments of $100 that has a current value of $1,112? (rounded to 2-digits)

Sam has had the following transactions during the

Sam has had the following transactions during the year: Gambling losses $3,000 New suit for work $500 Tax Preparation Fees $1,000 Investment mgmt fee $2,200 Sam's AGI of $110,000 is broken down as follows: Earned income ...

Question - assume a company has 10 million shares of stock

Question - Assume a company has 10 million shares of stock outstanding and that its Income Statement for Year 12 is as follows: Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 300,000 Cost of P ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As