exam1c.ch1ch2ch2Ach5ch5A - Name _ Peoplesoft ID _...

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Name __________________________________ Peoplesoft ID __________________________________ University of Houston C. T. Bauer College of Business Finance 3332 Principles of Financial Management Spring, 2010 Exam 1C Point values are in parentheses. To receive full credit: Clearly indicate your answer Financial functions may be used only for finding annuity factors All inputs to find annuity factor must be shown Carry all decimals, rounding only final answer Decimal places should be rounded to four places (two in percent form) Currency answers rounded to the nearest cent, where applicable Include applicable units on answers 1. Lucky Industries had taxable income of $16,000,000. Taxable Income($) 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 a) What is the firm’s income tax liability? (6) b) What is the firm’s average tax rate? (Show calculation.) (2) c) What is the firm’s marginal tax rate? (2) 2. Google’s common stock grew from about $430 to $620 per share over the 4 year period from 2006 through 2010. What has been the compound annual rate of growth in Google’s stock over this period? (6) 3. I borrowed $50,000 at an annual rate of 12 percent for 3 years. How much will be my monthly payments? (8)
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This note was uploaded on 02/13/2011 for the course FINA 3332 taught by Professor Darlachisholm during the Spring '08 term at University of Houston.

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exam1c.ch1ch2ch2Ach5ch5A - Name _ Peoplesoft ID _...

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