TB 20-11 Andy Griffin would like to invest $150,000 i... Andy Griffin would like to invest $150,000 in Foreign Co., which was founded and operates in a foreign country. This investment would give
Andy 25% ownership of the company. An annual dividend of $15,000 (Canadian funds) is anticipated.
Andy's personal marginal tax rate is 45% on regular income, 28% on eligible dividends, and 37% on non-eligible dividends. The foreign
company is subject to a tax rate of 38% on all business income. Any dividends received by Andy, personally, will be subject to a 15%
withholding tax
Required:
A. Determine the total tax liability (foreign and Canadian) that Andy will be subject to upon receiving dividends from Foreign Co.
B. How would your answer in A change if Andy established a Canadian holding company to purchase the shares, (subject to a 5%
withholding tax on dividends received)?
C. Determine Andy's after-tax proceeds be if he received eligible dividend income from the holding company,​

How did lani lazzari show her investors she was a good investment? (site 1)

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?