{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

exam1c.ch1ch2ch2Ach5partial (1)

# exam1c.ch1ch2ch2Ach5partial (1) - Name Webct User ID...

This preview shows pages 1–3. Sign up to view the full content.

Name __________________________________ Webct User ID __________________________________ University of Houston C. T. Bauer College of Business Principles of Financial Management Finance 3332 Spring, 2009 Exam 1 C 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. Round answers decimals to 4 places where applicable Point values are in parentheses. 1. Urlege Incorporated had taxable income of \$18 million. What is the company’s income tax liability? (6) 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 2. Elysian Company has taxable income of \$200,000 and paid taxes of \$61,250. What is Elysian ’s average  tax rate?  (2) 3. Elysian Company has taxable income of \$200,000 and paid taxes of \$61,250. What is Elysian ’s  marginal  tax rate?  (2) 4. Write the  algebraic equation , which was discussed in class, for calculating Earnings Per Share, beginning with  Revenues. (6) EPS = 5. Three months ago I purchased 800 shares of stock for \$60 per share, and the stock is now worth \$54 per share. Last  week, I received a dividend check totaling \$800. What is my holding period return? (8)

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

View Full Document
6. What is the annualized premium or discount between the spot rate and the three month forward rate for Swiss Franc?
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