Answer:
Corporate cultures can hinder individuals in making the "right" decisions.-c.
Answer:
present worth = $7380
Explanation:
given data
initial cash flow = $23,000
geometric gradient = 2%
interest rate i = 10% per year
time period = 5 year
solution
we get here present worth cost that is
present worth = initial cash flow ×
......................1
put here value and we get
present worth = $23,000 ×
present worth = $23,000 × 0.32087
present worth = $7380
Answer:
$1,260,000
Explanation:
Given that,
Annual depreciation expense = $3.6 million
Marginal corporate tax rate = 35%
Average corporate tax rate = 30%
The reason to use marginal tax shield is that the firm would save additional amount it would have paid in taxes.
Value of the depreciation tax shield:
= Marginal corporate tax rate × Annual depreciation expense
= 35% × $3,600,000
= $1,260,000
Therefore, the value of the depreciation tax shield on the company's new project is $1,260,000.
Answer:
The true β of the stock is 0%
Explanation:
6% = a + 12% (1 − 0.5); a = 0%.