Name- Abdullah-Al-Mamun

ID- 211002306

Ans to the question number-1

Our goal of maximizing the value of the shareholders' money can, and frequently does, conflict with
other objectives. As some of the basic opposing concerns, topics like safety, the environment, and the
good of society fit into this paradigm. Consider the instance of a company that manufactures steel parts
for automobiles. Producing this would necessitate a significant amount of electricity, posing a risk to the
environment. Also, the autos would consume a lot of fuel, harming the environment once more.
Employees may be exposed to injury risks during production, resulting in car accidents. Additionally, the
cars can contribute to weight problems and their related health problems in customers.

There are numerous other examples. Any business faces sacrifices, in terms of how much wealth it
produces versus how many resources it can devote to other goals, such as protecting the environment
or protecting people. A social media business may encourage technology addiction in customers. A beer
manufacturer may encourage alcoholism, one of the main killers of Americans. Regardless of which
industry or business one selects, one can find some such sacrifice. As such, corporate social
responsibility makes for a central topic in business in the twenty-first century.

Ans to the question number-2

Other countries with a lesser level of individual ownership, such as Germany and Japan, should have
fewer agency issues. There are more institutional owners and fewer individual owners in certain
scenarios, resulting in a reduced number of shareholders per company. This should help to limit the
number of divergent viewpoints on corporate goals and actions. Increased institutional ownership, along
with the expertise that comes with operating in the market as a firm, should lead to greater agreement
among owners and management about what is and is not acceptable, particularly in the case of
hazardous ventures. The increase in institutional.

Ans to the question number-3

The EDU Co. had $284,000 in taxable income. Now we have to find out company’s income taxes:

As we know that EDU co. had $284,000 which in the range of 39% in the table of corporate tax rate
which is from 100,001 to 335,000. Now can calculate the tax rate from above information:

Income taxes = ($284,000 Χ 39%) = $110,760

And the average tax rate of edu is $110,760

Ans to the question number-4

Given the following information for CAPM Co., calculate the depreciation expense:

Given that,

sales = $51,000; costs = $39,800; addition to retained earnings = $2,500; dividends paid =

$955; interest expense = $1,250; tax rate = 35 percent

Net Sales 51,000

Cost of good sold (39,800)

Depreciation 4989

Earning before interest & taxes 6211

Interest Paid 1250

Taxable income 4961

Taxes 1736

Net Income 3225

Dividends 955

Addition to retained earnings 2500

Workings:

Here net income = Dividends + Addition to retained earnings

= 955+2500

=3225

Taxable income = net income/(1-tax rate)

= 3225/(1-0.35)

= 4961

Earnings before interest & taxes = taxable income + interest

= 4961 + 1250

= 6211
Earnings before interest & taxes = sales-cost-depreciation

6211 -= 51000-39800-depreciation

Depreciation= 51000-39800-6211

= 4989