Start your trial now! First week only $4.99!*arrow_forward*

Question

Answer all subparts a,b,c,d.if answered within 45mins,it would be helpful!!

Pania Biddle owns 500 shares in Mainfreight Ltd (MFT), a company listed on the New Zealand Exchange (NZX). MFT keeps an imputation credit account as required under tax law. On 1 June 2020 declared a fully imputed final dividend of 34 cents per share to be paid to shareholders on 17 July 2020.

Explain the purpose of an imputation credit account (ICA) and provide one example each of the debit entries in the ICA with appropriate references to ITA 2007.

Also, calculate:

a) the total imputation credits attached to the dividends Pania will receive.

b) the total RWT on the dividends.

c)the total net dividends Pania will be paid.

d) the total gross dividend.

1 Rating

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4% compo...

A: Formula to calculate Present value: PV = FV/(1+r)^n Where PV is the present value, FV is the fututre...

Q: A town is seeking a new tourist attraction, and the town council has voted to budget $500,000 for th...

A: The present value is the value of the sum received at time 0 or the current period. It is the value ...

Q: We will assume that we saved $1,700. We can earn 7%. We will say that we will set aside the $1,700 f...

A: Future value: It is the future worth of cash flows that have occurred in the present.

Q: National Bank Limited has forecast its several deposits and loans over the next six months which are...

A: Excess of use of funds over sources of funds is known as liquidity deficit. In case of liquidity def...

Q: Investing in stocks and bonds are different because: A) With stocks, the expected return is impor...

A: Bonds are attractive based on their credit rating because a higher rating reflects more safety. Howe...

Q: Bond Relationships. Select one or more of the following phrases to complete the following sentences....

A: The bond relationship includes the terms used in the bond valuation. It includes the interest rate, ...

Q: Mary's lawyer gave her the following two options to settle her invoice. 1)$1900 in 1 month and ...

A: This question belongs to time value of money. According to Time value of money, the money you have ...

Q: QUESTION 2Suppose Agyapa Royalties just paid a dividend of Ghc1.50. It is expected to increase its d...

A: As per Dividend Growth model, P0 = D1 / (ke -g ) Where P0 = Price D 1 = Dividend at the end of yea...

Q: Some sport's teams as football teams, baseball teams, basketball teams fund stadiums, ball diamonds,...

A: The conceptual formula used is:

Q: Betty Kay has a contract in which she will receive the following payment for the next 5 year: $1,000...

A: We should find pv of cash flows and if the present value is more than 30000 we should reject the off...

Q: WSP Inc. is involved in a wide range of unrelated projects. The company will pursue any project that...

A: Risk refers to possibility of failure or chances of loss related to projects. Higher risky projects ...

Q: a) The amount an investment is worth after one or more time periods is referred to as _____________...

A: Note: As per our answering guidelines when there are multiple questions, first 3 questions have to b...

Q: Chingos and Daughters Construction is considering three investment proposals: A, B, and C. Proposals...

A: Given Information: NCF(A) NCF(B) NCF(C) Initial Investment $600,000 $800,000 $470,000 Plann...

Q: The following problem is designed to be solved by spreadsheet. Maintenance costs for a new facility ...

A: Present value is the current worth of an amount of money in future. The future amount is discounte...

Q: A bond matures in 15 years and pays an 8 percent annual coupon. The bond has a face value of $1,000 ...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Be-low Mining, Inc., is trying to decide whether it should purchase or lease new earthmoving equipme...

A: Formula to make the decision of buy or lease is as follows: P = F(P/F, i, n) P = A(P/A, i, n)

Q: Problem 7-26 Greta, an elderly investor, has a degree of risk aversion of A= 3 when applied to retur...

A: To reduce the risk, generally investors invest in different securities so that overall risk will be ...

Q: Is it better for a firm’s actual stock price in the market to be under, over, or equal to its intrin...

A: Intrinsic value: Intrinsic value denotes to an investor's view of the intrinsic worth of an asset, l...

Q: An environmentally friendly 2,800-square-foot green home (99% air tight) costs about 8% more to cons...

A: Present value is the current worth of cash flows that are expected to occur in future.

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? $9,800 is depos...

A: Future Value = Present Value * (1+r)^n Where. r = rate of interest n = no. of years

Q: Nona purchased a new car earlier today for $32,000. She financed the entire amount using a five-year...

A: GIVEN, R = 3% LOAN AMOUNT = $32000 N= 5 YEARS = 60 MONTHS PMT = P×R12×1+R12N1+R12N-1PMT = 32000X3%12...

Q: ETT End of Year Annuity X Annuity Y 1-10 1 K 11-20 21-30 1 K Annuities X and Y have equal present va...

A: Here V10 is 1/2 Present Value of X is equal to Present Value of Y

Q: Earnings can be paid out in dividends or retained by the firm to finance ongoing productive activiti...

A: Earnings are the profits remaining after payments of taxes. This profit will form part of common sto...

Q: The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost ...

A: FIFO stands for first in first out. Under the FIFO inventory valuation method, the inventory purchas...

Q: Blooming Ltd. currently has the following capital structure:Debt: $2,500,000 par value of outstandin...

A: a) Computation of current price of the bond is as follows:Bond price=∑i=1nC/(1+r)n+F/(1+r)n where, C...

Q: consider a student loan of 17,500 at a fixed apr of 12% for 25 years. what is the monthly payment

A: Annuity refers to series of annual payment which are paid or received at start or end of specific pe...

Q: Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in Financ...

A: Amount they will have is future value of monthly savings

Q: Question 2

A: Following assumptions are made to answer this question: Let x be the amount invested at 8% Let y be ...

Q: Suppose that you borrow $8,000 now, promising to repay the loan principal plus accumulated interest ...

A: The future value of an amount is the future worth of an amount calculated based on the time value...

Q: Blooming Ltd. currently has the following capital structure:Debt: $2,500,000 par value of outstandin...

A: we will only answer first three sub parts. For remaining parts, please resubmit the question and als...

Q: The following information relates to the forthcoming period:-Order costs = $25per orderHolding costs...

A: Information Provided: Order costs = $25per orderHolding costs = 17% of purchase priceAnnual demand =...

Q: a. Does the bank have enough capital to meet the requirements as specified by Basel II? b. The bank ...

A: Basel norms are the norms which are prescribed by Banking supervision committee for the banks. Banks...

Q: Vision-guided robotics equipment used to improve efficiency and purity when manufacturing food produ...

A: Depreciation is a non-cash expense which is charged against the use of the fixed assets of the compa...

Q: Monroe Manufacturing owns a warehouse that has been used for storing finished goods for electro-pump...

A: Capital Budgeting decisions are related to long-term investment made by the company in selection of ...

Q: Consider the following cash flow profile and assume MARR is 10%/yr. Solve, a. Determine the ERR for ...

A: IRR is a tool for making investment decisions. It measures whether an investment is profitable or no...

Q: A coupon bond that pays interest of $60 annually has a par value of $1000, matures in 4 years, and i...

A: Working note:

Q: Coming Up Roses has grown into a very successful business and you have just received an offer from s...

A: We will use the XNPV function. We will apply the XNPV formula where the inflows anad dates are o...

Q: Hello We had this example in Corporate Finance My question: How come they dont have to pay tax of t...

A: Capital gain tax is payable when gain is made on sale of non-current asset. Since, when the stock is...

Q: An investor has a principal amount of $P. If he desires a payout (return) of 0.1P each year, how man...

A: PMT is calculated as: Note: Let principal amount be $1,000

Q: Blooming Ltd. currently has the following capital structure: Debt: $2,500,000 par value of outsta...

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If yo...

Q: LAL Corporation currently generates revenues of $1 million per year. Next year, revenues will either...

A: Time value The amount received today by the person has more worth than the same value to be received...

Q: In case of bankruptcy: Preferred shareholders get their money first, then creditors, common share...

A: Bankruptcy is the situation where company will be liquidated and all debts will be paid on priority ...

Q: show steps with explanation

A: IRR stands for internal rate of return. It is the rate at which net present value of project is 0. I...

Q: Consider the accompanying shown cash-flow diagram. Solve, a. If P = $1,000, A = $200, and i% = 12% p...

A: Working note:

Q: Kim Epson operates a full-service car wash, which operates from 8 a.m. to 8 p.m., 7 days a week. The...

A: Capacity of automatic washing & drying station: =30 cars per hour=30×12=360 cars/dayCurrent capa...

Q: A company is offering a 4.9% discount to receivables if they agree topay within 45 days. The current...

A: A credit discount is a discount offered to the borrower of money by the lender of money if the amoun...