<em>In a firm's income statement, interest payments on debt are deducted </em><em>before </em><em>corporate taxes are calculated, which</em><em> reduces</em><em> the firm's tax liability.</em>
<h3>Income statement: What is it?</h3>
An overview of the company's operations for a specific time period is provided in the income statement. The revenue (gross and net sales), cost of products sold, operational expenditures (selling and general and administrative expenses), taxes, and net profit or loss are the statement's primary components.
<h3>What is displayed on a firm's income statement?</h3>
The statement logically and coherently presents the company's revenue, costs, gross profit, selling and administrative expenses, other expenses and income, taxes paid, and net profit.
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Answer:
In order to find the intrinsic value of a stock using the dividend discount method we need to know its growth rate, its last dividend and its required return. When we know these 3 things we can use them in the formula which is
Intrinsic Value = Dividend*(1+Growth Rate)/(Required return - Growth rate)
In this case we know all three of these values which are
D= 3
G= 3%
R= 17%
We will put these values in the formula in order to find the intrinsic value of the stock
3*(1+0.03)/(0.17-0.03)=22.07
The intrinsic value of the stock is $22.07
Explanation:
Answer:
The answer is B.
Explanation:
Cost of investment was $100,000
Present value of all the cash inflows = $120,000
Profit = $20,000 ($120,000 - $100,000)
Since the present value of all the cash inflows is greater than the initial cost of investment, the capital project should be accepted because the firm will be better off and shareholders' wealth will be increased.
The expected rate of return for the project is $20,000/$100,000
0.2 or 20%
Since the requirement for privacy ............................................. with appropriated SUBJECT MATTER EXPERTS to ensure that ...............accurate.
Privacy specialists are those professionals who are trained in the field of data protection. They work to ensure that a company's data is securely protected. In their work, the privacy specialists have to collaborate with subject experts in the field of the data which they are working on in order to ensure accuracy. For instance, when working to protect accounting data, experts in the fields of accounting such as a chattered accountant will be needed to work together with the privacy specialist.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Sales:
January=$220,000
February= $260,000
It is expected that 75% of its sales will be collected in cash during the month of sale, and the remaining 25% will be collected in the month following the sale.
<u>Cash collection:</u>
From January= 220,000*0.25= 55,000
From February= 260,000*0.75= 195,000
Total cash collection= $250,000