1.

. Consider a 5-year amortizing loan. You borrow $40,000 initially, and repay it in five equal annual annuity year-end payments. Construct the amortization table for the first three years. Assume that the interest rate is 6%.

2.

The NOL corporation just received $140,000 as the dividend income of which only 30 % is taxed and has the following cash flows:

Operating income $550,000

Interest paid 50,000

Dividends paid 80,000

Interest received 60,000

If the applicable income tax rate is 30 percent (federal and state), what is the corporation's after tax income?

3.

The NOL corporation just received $240,000 as the dividend income of which only 30 % is taxed. If the applicable income tax rate is 21% for the company, what is its after-tax dividend income? (4 points)