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timurjin [86]
2 years ago
9

Depreciation for a tax-paying firm:_________.

Business
1 answer:
r-ruslan [8.4K]2 years ago
5 0

Answer: a) increases expenses and lowers taxes.

Explanation:

Depreciation accounts for the wear and tear in fixed assets over their period of use. It is accounted for every period in the Income Statement as an expense which means that its addition increases the business's expenses.

It does that the advantage of being tax deductible however. This then means that it can be subtracted from Net Income for tax purposes. When that is done, it will reduce the Net Income thereby reducing the amount of taxes that can be charged on the company.

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What is the expected constant-growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and
Viktor [21]

Answer:

8.9

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according to the constant dividend growth model

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S_A_V [24]

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6 0
3 years ago
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