XYZ Corporation reported net income of $6 million for the year ended 2021. It has 900,000 shares of common stock and 50,000 shares of non-cumulative, non-convertible,9% preferred stockoutstanding throughout the year.At the beginning of the year the corporation issued $2 million of 5% convertible bonds,each $1,000 bond convertible into 5 shares of common. XYZ Corporation's income tax rate is 20%Calculate XYZ Corporation's 2021 diluted EPS, assuming the company paid annual cash dividend of $450,000 and $150,000 to common and preferred stockholders', respectively.$6.22$6.52$6.25$6.43

First, we need to calculate the net income available to common stockholders. This is done by…

Answered: XYZ Corporation reported net income of…

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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(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.4 million. Gross profits totaled $1.08 million, and operating and depreciation expenses were $507,000 and $359,000, respectively. Dividend income for the year was $14,000, which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window, LOADING…, to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates?
A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) ASAP
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For the year just ended, ThruCast Corp. had pretax earnings from operations of $1.25 million. In addition, it received $110,000 in interest income from bonds it held in XrayTech and it received $65,000 in dividend income from its 8% common stock holding in Books-R-Us Corp. What is the total tax liability for ThruCast Corp. for the year? $299,114 $239,400 $292,425 $262,500
The federal tax rate has been 35% number of years. Assume in the third quarter of 2020 new rate of 40% is approved effective January 1, 2020. At the beginning of the year you had deferred tax assets of ten million and deferred tax liability of six million. You estimate the pretax gaap income will be approximately 5 million in 2020 and that the taxable income will be about 7 million. The company is publicly traded with the 500,000 shares outstanding all year. What effect will be tax rate increase have a balance sheet and income statement for the company for the year 2020? Can actions be taken to minimize the effect?
22) A calendar-year corporation has a $15,000 current E&P deficit and a $40,000 positive accumulated E&P balance. The shareholders of the corporation have a total basis in outstanding shares of $30,000. A $75,000 distribution is made to the shareholders on the last day of the year. The tax results to the shareholders will be A) dividend income of $0, a tax-free return of capital of $30,000, and capital gain of $45,000. B) dividend income of $40,000, a tax-free return of capital of $30,000, and capital gain of $5,000. C) dividend income of $25,000, a tax-free return of capital of $5,000, and capital gain of $45,000. D) dividend income of $25,000, a tax-free return of capital of $30,000, and capital gain of $20,000.
Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $2,500,000 Preferred $1 stock, $10 par 2,500,000 Common stock, $25 par 2,500,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $1,050,000, (b) $1,300,000, and (c) $1,550,000.
During the current year, High Corporation had 3 million shares of common stock outstanding. $5,000,000 of 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $3 million for the year. The bonds are convertible into 625,000 shares of common. What is diluted EPS (rounded)? A. $0.89. B. $0.91. C. $1.00. D. $1.08
Gainer Company has three sources of financing: $3 million of mortgage bonds paying 5 percent interest, $2.5 million of unsecured bonds paying 8 percent interest, and $4.5 millsion of common stock, which is considered to be an average risk (with a 6 percent premium). The company's tax rate is 40 percent and the rate of interest on long-term government bonds is 3 percent. Last year, Gainer Company had after-tax income of $769,000. Amount Percent After-Tax Cost Weighted Cost Mortage bonds $3,000,000 0.3 Unsecured bonds $2,500,000 0.25 Common stock $4,500,000 0.45 Total $10,000,000 Fill in the following table to calculated the weighted avergae percent cost of capital.
A C corporation earns $4 per share before taxes. The corporate tax rate is 21%, the personal tax rate on dividends is 15%. What is the total amount $ of taxes paid (company + individual) if the company pays a $2 dividend?
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