财务管理双语课练习答案.docVIP

财务管理双语部分课后练习答案 2-7 a. Calculation of gross income: 2000 Salary $60,000 Dividend Income 10,000 Interest Income (IBM bonds only) 5,000 ST capital gains 1,000 = $22,000 - $21,000 Gross Income (excluding LT capital gains) $76,000 LT capital gains = $22,000 - $9,000 = 13,000 **LT Capital gains tax rate =20%. Not taxed: $10,000 interest on Florida municipal bonds Calculation of taxable income: Gross Income $76,000 Exemption ( 2,750) Deductions ( 5,000) Taxable Income (excluding LT capital gains) $68,250 Personal tax = Tax on taxable income (excluding LT capital gains) + LT capital gains tax = [$14,138.5 + ($68,250 - $62,450)(0.31) + $13,000(0.2) = [$14,138.5+ $1,798] + $2,600 = $18,536.50 b. Marginal tax rate = 31%. Average tax rate = $18,536.50/($ 68,250+$13,000)= 22.8%. c. After-tax returns: IBM = (0.11) - (0.31)(0.11) =7.59% FLA = (0.09) - 0 = 9.00% The Florida bonds provide a higher after-tax return. d. 9% = 11%(1 - T). Now solve for T: 9% = 11% - 11%T 11%T = 2 T = 2/11 = 18.18%. At a tax rate less than 18.2 percent, Margaret would be better off holding 11 percent taxable bonds, but at a tax rate over 18.2 percent, she would be better off holding tax-exempt municipal bonds. Given our progressive tax rate system, it makes sense for wealthy people to hold tax-exempt bonds, but not for those with lower incomes and consequently lower tax rates. 2-8 a. Salary and income:a Donald’s salary $50,000.0 Interest from bonds 2,500.0 Income from rental property 42,000.0 = $3,500 x 12 months Adjusted income $94,500.0