Answer: is highly dependent upon a company's tax rate.
Explanation:
The after-tax cost of debt is defined as the net cost of debt that is determined by adjusting the gross cost of debt incurred for its tax benefits. The after-tax cost of debt
equals the pre-tax cost of debt which is then multiplied by (1 – tax rate).
The after-tax cost of debt is the cost of debt which is included while calculating the weighted average cost of capital and it has a greater effect on the cost of capital of a firm when there's an increase in the debt-equity ratio.
Answer: All of these are correct answers.
Explanation: In simple words, Balanced scorecard refers to the strategic management system in which the organisational tries to communicate to the stakeholders what is their ultimate goal and what are they trying to establish.
In such a process, the managers of the organisation translate their mission statement relating to various aspects of customer service and declares their course of actions regarding the activities that really matters to the customers.
Hence from the above we can conclude that all the statements are correct in the given case.
-Whenever countries have different opportunity costs in production they can benefit from specialization and trade.
-Benefits of specialization include greater economic efficiency, consumer benefits, and opportunities for growth for competitive sectors.
Answer and Explanation:
Revenue $160,000
Rental Costs $30,000
Variable Costs $50,000
Depreciation $10,000
Profit before tax $70,000
Tax(35%) $24,500
Net Income $45,500
Operating cash flow
a) Dollars in minus dollars out
Revenue ? rental costs ? variable costs ? taxes = $160000 -$30000-$50000-$24,500 = $55,500
b) Adjusted accounting profits
Operating cash flow = Net income + depreciation = $45,500 + $10,000 = $55,500
c) Add back depreciation tax shield
Operating cash flow = [(Revenue ? rental costs ? variable costs) × (1 ? 0.35)] + (depreciation × 0.35)]
= ($160,000-$30000-$50,000)*0.65 + $10,000*0.35 = $55,500
Yes, the above approaches result in the same value for cash flow
