Acc 552 Week 3

Homework 1
1. CORRECT You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade occurred on the NYSE. This is an example of D. Secondary market transaction
2. CORRECT Which of the following statements is CORRECT?
E. Capital market instruments include both long-term debt and common stocks

3. Talbot Enterprises recently reported an EBITDA of $9.0 million and net income of $2.7 million. It had $3.24 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. 1,260,000 I submitted 1,250,000in the check assignment and got it wrong so I changed it to 1,260,000
CORRECT In its most recent financial statements, Del-Castillo Inc. reported $65 million of net income and $870 million of retained earnings. The previous retained earnings were $860 million. How much in dividends did the firm pay to shareholders during the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. 55,000,000
Prev retain 791 + net income 30 = 856
856 - Retain earnings 800 = 56,000,000 dividends
5. CORRECT The Wendt Corporation had $11.5 million of taxable income.
a. What is the company's federal income tax bill for the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as