The correct answer that would best complete the given statement above is the word JOB ENRICHMENT. Here is the complete statement. <span>When one department store authorized thousands of its sales clerks to handle functions normally reserved for store managers, such as handling merchandise-return problems and approving customers' checks, they gave them more responsibility. This is a job enrichment technique. Hope this helps.</span>
Answer:
A. D1 = 1.50*1.06 = 1.59
D2 = 1.59*1.06 = 1.69
D3 = 1.69*1.06 = 1.79
B. PV of D1=(1.50*1.06)/1.13^1=1.41
PV of D2=(1.50*1.06^2)/1.13^2=1.32
PV of D3=(1.50*1.06^3)/1.13^3=1.24
PV of all dividend = (1.50*1.06)/1.13^1 + (1.5*1.06^2)/1.13^2 + (1.5*1.06^3)/1.13^3
PV of all dividend = 1.59/1.13 + 1.6854/1.2769 + 1.786524/1.442897
PV of all dividend = 1.407079646 + 1.319915 + 1.238150748
PV of all dividend = 3.965145814288893
PV of all dividend = 3.97
C. PV = 27.05/(1+13%)^3
PV = 27.05/(1.13)^3
PV = 27.05/1.442897
PV = 18.74701
PV = 18.75
D. The most you should pay for it
:
= (1.50*1.06)/1.13^1+(1.5*1.06^2)/1.13^2+(1.5*1.06^3)/1.13^3+27.05/1.13^3
=22.71
E. Value = (1.50*1.06)/(13%-6%)
Value = 1.59 / 7%
Value = 1.59 / 0.07
Value = 22.714286
Value =22.71
F. No, the value is not dependent on the holding period, you can see from above that the value of infinite time period estimated in E equals to the value calculated when there was 3 years holding period.
Answer:
D) net profit before taxes; total assets invested
Explanation:
The formula to compute the return on investment is shown below:
Return on investment = Operating Income ÷ Total assets invested
It shows a relationship between the pre taxes operating income and the total assets investment
It checks that investment which is invested yields high returns or not. If it generates high returns that it will gain to the company else the company will suffered the losses.
Answer:
The amount of the additional projected liability that should be recognized is $28,000
Explanation:
For computing the amount of the additional projected liability, we have to apply the formula which is shown below:
= Tax benefit in 20% - Tax benefit in 40%
= $70,000 - $42,000
= $28,000
The other information which is given in the question is irrelevant. So, it is not been considered in the computation part. Hence, it is ignored.
We took the higher value between $42,000 and $14,000.
Complete Question:
Crane and Loon Corporations, two unrelated calendar year C corporations, have the following transactions for the current year.
Crane,Loon
Gross Income: 180k, 300k
Expenses from operations: 100k, 230k
Div received: 100k, 230k
Compute the DRD for both companies
Solution:
DRD is a federal tax deduction for certain companies earning distributions from related entities in the United States. The amount of the dividend to be withheld from income tax by a corporation is related to how much it is owned in the business with the dividend.
Crane: 180k-255k+100k =25k-(100k*.5) = -25k so take 50k
Loon: 300k-310k+230k =220k-115.5k = 104.5+so good.
220.5k= 110k or 115k
Take lesser 110k
Crane DRD = 50k
Loon DRD = 110k
