# The after income tax yield on the taxable bond is a

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56. The after-income-tax yield on the taxable bond is: a. Before- income-tax yield times (1 + Marginal income tax rate) b. Before-income-tax yield times (1 – Marginal income tax rate) c. Before-income-tax yield – Marginal income tax rate) d. none of these d 57. Economic income (cash flow plus capital gain) accounting income. b. is the same as b. is similar but not the same as c. is greater than d. differs from b 58. The income statement: point in time. period of time. particular point in time. c 59. All of the following items represent liabilities with the exception of: b 60. Which of the following is a use of cash that would appear on the statement of cash flows? III. Multiple Choice (Problems) b 61. Compute EPS, given the following information: interest expense: \$40,000; net income: \$400,000; preferred dividends paid: \$65,000; common dividends paid: \$100,000; common stock outstanding: 100,000 shares. a. \$1.95 b. \$3.35 c. \$2.35 d. \$3.60

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[ ANSWER: EPS = (Net income – preferred dividend paid) / common stock outstanding = (\$400,000 – \$65,000) / 100,000 shares = \$3.35 per share .] d 62. Net income is \$1,000,000 for the year, EBT is \$2,500,000, retained earnings in January were \$5,000,000, preferred dividends paid for the year are \$100,000, common stock dividends paid for the year are \$300,000, and common shares outstanding are 1,000,000. What are end-of-year retained earnings? [ stock dividends paid) = (\$1,000,000 – \$100,000 – \$300,000) = \$600,000 for year. End-of-year retained earnings = Retained earnings at beginning + Retained earnings for year = \$5,000,000 + \$600,000 = \$5,600,000 .] d 63. Lawrence Manufacturing has 20 million shares of stock outstanding at the end of the year. Net income is \$60 million, retained earnings are \$90 million, and a total of \$24 million in dividends is paid. What are Lawrence's earnings per share? [ share .] c
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