(Corporate income tax) Last year Sanderson, Inc. had sales of $3.8 million. The firm's cost of goods sold came to $2.5 million, its operating expenses excluding depreciation of $101,000 were $395,000, and the firm paid $152,000 in interest on its bank loans. Also, the corporation received $55,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $25,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, to calculate the corporation's tax liability. What are the firm's average and marginal tax rates? . The firm's tax liability for the year is S The firm's average tax rate is The firm's marginal tax rate is Data table * (Round to the nearest dollar) %. (Round to two decimal places) %. (Round to the nearest integer.) Taxable Income $0-$50,000 Marginal Tax Rate 15% 25% 34% 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% $50,001-$75,000 $75,001-$100,000 $100,001-$335,000 Over $13,333,333 35% (Click on the icon in order to copy its contents into a spreadsheet.) - X

(Corporate income tax) Last year Sanderson, Inc. had sales of $3.8 million. The firm's cost of goods sold came to $2.5 million, its operating expenses excluding depreciation of $101,000 were $395,000, and the firm paid $152,000 in interest on its bank loans. Also, the corporation received $55,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $25,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, to calculate the corporation's tax liability. What are the firm's average and marginal tax rates? . The firm's tax liability for the year is S The firm's average tax rate is The firm's marginal tax rate is Data table * (Round to the nearest dollar) %. (Round to two decimal places) %. (Round to the nearest integer.) Taxable Income $0-$50,000 Marginal Tax Rate 15% 25% 34% 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% $50,001-$75,000 $75,001-$100,000 $100,001-$335,000 Over $13,333,333 35% (Click on the icon in order to copy its contents into a spreadsheet.) - X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The value of Broadway-Brooks Inc.'s operations is $846 million, based on the corporate valuation model. Its balance sheet shows $70 million in accounts receivable, $40 million in inventory, $40 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $150 million in notes payable, $90 million in long-term debt, $25 million in preferred stock, $150 million in retained earnings, and $300 million in total common equity. If the company has 18 million shares of stock outstanding, what is the best estimate of the stock's price per share? (Round your answer to 2 decimal places.)
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