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1 year ago

other things held constant, the lower a firm's tax rate, the more logical it is for the firm to use debt. true false

1 answer:

8 0

The tax shelter from debt is less valuable as the lower the tax rate. Consider the WACC's debt service costs: rd (1-Tax rate). The cost of debt is not reduced as much when the Tax rate is low as it is when the Tax rate is high. hence, the given statement is False.

The tax rate in a tax system is the proportion at which a company or individual is taxed. Statutory, average, marginal, and effective tax rates are just a few of the ways that can be displayed.

Hence, The cost of debt is not reduced as much when the Tax rate is low as it is when the Tax rate is high. hence, the given statement is False.

Learn more about tax rate:

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A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchas

rodikova [14]

Answer:

a) $5, 764,000

b) $1, 959,000

Explanation:

The first part of the question is to determine the taxable income of the company

The taxable income - The company's gross income - The Capital Expenditures - The Depreciation expenses for capital expenditure

= $8,500,000 - $2,280,000 - $456,000

= $5,764,000

Part B) This is to determine the Federal Income Taxes for the year

Looking at the income tax distribution tab, we first check where the company falls into

Since, the company has a taxable income of $5,764,000, it falls in the category of

$335,000 to $10,000,000= $113,900 + 34% of the amount over $335,000

As such, the Federal Income Tax

= $113,900 + ($5,764,000- $335,000) x 34%

= $113,900 + $1, 845,000

= $1, 959,000

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2 years ago

The product is shown without a decimal point. Where should the decimal point be placed?

mojhsa [17]

Answer:

Answer:B Place the decimal point after 2

Explanation:

All you have to do is multiply 3.12 times 4

7 0

2 years ago

The basic laws of forecasting help to avoid misapplication or misrepresentation of forecast results. Law 3 states, __________. M

pav-90 [236]

Answer:

Explanation:

A forecast is an estimate of the future level of some variable.

It is important to forecast because:

-Asses long-term capacity needs

-Develop budgets, hiring plans

-Plan production or order materials

There are types of forecast

Demand, depend on the firm level or the market level.

Supply, depend on number of current producers and suppliers, projected aggregate supply levels, and technological and political trends.

Price, depend on cost of supplies and services, market price for firm´s product or service.

There are 4 laws of forecasting, that help to avoid misapplication or misrepresentation of forecast results:

1-Forecast are almost always wrong by some amount (but they are still useful). Even under the best of conditions, no forecasting approach can predict the exact level of future demand, supply, or price.

2-Forecast for the near term tend to be more accurate. This law recognizes that in the near term, the factors that affect the forecast variable are not likely to change greatly.

3-Forecast for group of products or services tend to be more accurate. Many businesses have found that it is easier and more accurate to forecast for groups of products or services than it is to forecast for specific ones.

4-Forecast are no substitute for calculated values.

3 0

2 years ago

You are running a hot Internet company. Analysts predict that its earnings will grow at 30% per year for the next five years. Af

Andrej [43]

Answer:

The present value of the future earnings is $51,981,214.36

Explanation:

The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.

Taking the value in millions,

Present Value = 1 * (1+0.3) / (1+0.08) + 1 * (1+0.3)^2 / (1+0.08)^2 +

1 * (1+0.3)^3 / (1+0.08)^3 + 1 * (1+0.3)^4 / (1+0.08)^4 + 1 * (1+0.3)^5 / (1+0.08)^5 + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]

Present value = $51.98121436 million or $51,981,214.36

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2 years ago

ill, a manager in healthcare, is leveraging marketing strategies and tactics that will alter or create behaviors that have a pos

Veseljchak [2.6K]

Answer:

The correct answer is the option A: social marketing.

Explanation:

To begin with, the concept called <em>''social marketing''</em>, in the world of business, refers to the process of implementing the marketing mix strategies to the organization with the purpose of focusing and caring about the good of the community as a whole. Moreover, it also benefits the company due to the fact that it shows a great corporate social responsibility. Furthermore, it aims to influence behaviors that benefit individuals and societies for the greater social good.

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2 years ago