FIN
Week2.docx

# Week2.docx - Week 2 Jiangqi Luo Chapter1 1 What is the most...

• Homework Help
• 3

This preview shows pages 1–2. Sign up to view the full content.

Week 2 Jiangqi Luo ° Chapter1 ° 1. What is the most important difference between a corporation and all other organization forms? ° A corporation is a legal entity separate from its owners. This means ownership shares in the corporation can be freely traded . None of the other organizational forms share this characteristic. In addition, investors in a corporation can remain anonymous , and there is no limit on the number of owners a corporation can have. 6. You are a shareholder in an Australian corporation. The corporation earns \$2 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 30% and you are on the lowest personal tax rate of 19%. How much is left for you after all taxes are paid/refunded? after tax is 2*(1-0.3) =\$1.4 tax is \$0.6 2*0.19 =\$0.38 credit, 0.38-0.6 = -\$0.22 The left is 1.4+0.22 =\$1.62 ° 7. Repeat Problem 6 assuming the highest personal tax rate of 45%.

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern