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exam1a.ch1ch2ch5

# exam1a.ch1ch2ch5 - Name Webct User ID University of Houston...

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Webct User ID __________________________________ University of Houston C. T. Bauer College of Business Finance 3332 Principles of Financial Management Fall, 2007 Exam 1A To receive full credit, show all work—equations in variable form, equations with numbers plugged in—and clearly indicate your answer. Financial functions may be used only for finding annuity factors, and all inputs must be shown. 1. Illustrate a brief version of the Income Statement in  algebraic form , beginning with Revenues, calculating  Earnings per Share. (4) EPS = 2. Last month I purchased 100 shares of stock for \$10 per share. Last week, I received a dividend check totaling \$200,  and the stock is now worth \$11 per share. What is my holding period return on this investment? (5) 3. Longora Corporation had sales of \$400 million, cost of goods sold of \$100 million, other operating expenses of \$60  million, interest expense of \$200 million, and interest income of \$20 million, received \$10 million in dividend income, and  paid common stockholders dividends of \$5 million. What is Longora’s taxable income? (8) 4. GHA, Incorporated had taxable income of \$16 million. (10) Taxable Income(\$) Tax Calculation Up to 50,000 \$0 + (15% Amount over \$0) 50,001-75,000 \$7500 + (25% Amount over \$50,000) 75,001-100,000 \$13,750 + (34% Amount over \$75,000) 100,001-335,000 \$22,250 + (39% Amount over \$100,000) 335,001-10,000,000 \$113,900 + (34% Amount over \$335,000) 10,000,001-15,000,000 \$3,400,000 + (35% Amount over \$10,000,000) 15,000,001-18,333,333 \$5,150,000 + (38% Amount over \$15,000,000) Over 18,333,333 35% X Taxable Income

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exam1a.ch1ch2ch5 - Name Webct User ID University of Houston...

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