1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sammy [17]
3 years ago
5

Tax savings generated from deductions are considered cash inflows.

Business
1 answer:
lubasha [3.4K]3 years ago
3 0
Tax savings generated from deductions are considered cash inflows.

Answer: false

Hope this helps
You might be interested in
The Hype Company's currently outstanding bonds have a 10 percent coupon and a 11 percent yield to maturity. Hype believes it cou
zavuch27 [327]

Answer:

After tax cost of debt is 6.82%

Explanation:

Currently the yield to maturity is the  pre-tax cost of debt for Hype company, however the after tax cost of debt considers that the bonds are tax deductible , its actual is less than the pre-tax cost of debt , hence the after-tax cost of debt is shown below

After tax cost of debt=yield to maturity *(1-tax)

after tax cost of debt=11%*(1-0.38)

after tax cost of debt=11%*0.62

after tax cost of debt =6.82%

This confirms that cost of debt is usually lower than cost of equity , where shareholders would want an extra premium to compensate them for the increased risk taken by investing in the business.

5 0
3 years ago
Everett Company has outstanding 30,000 shares of $50 par value, 6% preferred stock and 70,000 shares of $1 par value common stoc
hoa [83]

Answer:

See explanation section.

Explanation:

Requirement A

If the preferred stock is cumulative, cash dividends paid to each class of stock is as follows:

1st year = Cash dividend's for common stock = $0

Cash dividend's for preferred stock = $0

As there is no declaration of cash dividend for the first year.

As the preferred stock is cumulative, preferred dividends for the first year will be given in the 2nd year.

2nd year = Cash dividend's for common stock = $310,000 - $8,400

= 301,600

Cash dividend's for preferred stock = $4,200 + $4,200 = $8,400

<em>Calculation:</em> 1st year dividend = 70,000 × $1 × 6% = $4,200. It will remain same in the 2nd year for the preferred stock.

3rd year = Cash dividend's for common stock = $90,000 - $4,200

= $85,800

Cash dividend's for preferred stock = $4,200

Preferred dividend's remain same for the 3rd year too.

Requirement B

If the preferred stock is non-cumulative, cash dividends paid to each class of stock is as follows:

1st year = Cash dividend's for common stock = $0

Cash dividend's for preferred stock = $0

As there is no declaration of cash dividend for the first year.

As the preferred stock is non-cumulative, preferred dividends for the first year will not be given in the 2nd year.

2nd year = Cash dividend's for common stock = $310,000 - $4,200

= 305,800

Cash dividend's for preferred stock = $4,200

<em>Calculation:</em> 2nd year dividend = 70,000 × $1 × 6% = $4,200.

3rd year = Cash dividend's for common stock = $90,000 - $4,200

= $85,800

Cash dividend's for preferred stock = $4,200

Preferred dividend's remain same for the 3rd year too.

5 0
3 years ago
An authentication token is a(n):____________
bezimeni [28]

Answer:

The correct answer is:

device the size of a credit card that contains access permission data. (A)

Explanation:

An authentication token, also known as a security token is a device used to authorize access to a network service. Tokens use the two-factor authentication method to ensure security of a system. Usually the authentication devices have access pins before access to the main tokens, and tokens are unique sets of numbers that uniquely identifies a user in a service, and they are changed frequently, usually within a 5-minute period.

5 0
3 years ago
Which of the following is not an example of how media coverage of the Space Race affected the economy?
mrs_skeptik [129]

Correct option: The media only covered positive elements of the Space Race and never mentioned any setbacks.

The above given option does not talk about any aspect of media coverage of the space race and its effects on the economy. Covering only positive aspect without explaining its economic implications does not have any positive or negative effect on any economic activity, externalities or economic well being of any country. On the other hand, option B , C and D talks about economic implications.


7 0
3 years ago
Read 2 more answers
Rainbow Co. began operations in 2019 and reported $600,000 in income before income taxes for the year. Rainbow’s 2019 tax deprec
cricket20 [7]

Answer:

30.000

Explanation:

Income before taxes  $300,000

Timing difference between books and Tax (A) $100,000

Permanent difference cannot be considered for calculation of Differed tax liability or Deferred tax asset $40,000 (B)  is zero

Total Timing deference (C=A+B)  $100,000

Tax rate enacted for future (D)  30%

<h2>Differed tax liability (C*D)  $30,000 </h2>

<h2></h2>

4 0
3 years ago
Other questions:
  • Is Faraj legally required to pay this additional amount in this case? Melissa Faraj owns a lot and wants to build a house accord
    9·1 answer
  • In recent times, the value of "currency" as well as "checkable deposits" was about $___________ billion each.
    15·1 answer
  • Which is most likely to be a long run adjustment or a firm that manufactures golf carts on an assembly line basis?
    5·1 answer
  • The Pie ________ command can be used to move individual slices of a pie away from the center, emphasizing individual value.
    7·1 answer
  • The legal concept of limited use permits limited duplication and use of a portion of copyrighted material for certain purposes,
    10·1 answer
  • Choose the correct way to complete the sentences to explain how to draw concentric circles when doing a freehand sketch.
    13·1 answer
  • Jeff wants to ship a small order to his friend he places to order by phone and his package is delivered the same day which wareh
    5·1 answer
  • Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cas
    5·1 answer
  • I feel like it’s depreciation I need help please
    7·1 answer
  • The _________ method of determining an applicant's score is based on the expert judgment of the manager.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!