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PSYCHO15rus [73]
3 years ago
11

The expected before-tax IRR on a potential real estate investment is 14 percent. The expected after-tax IRR is 10.5 percent. Wha

t is the effective tax rate on this investment?
Business
1 answer:
NeX [460]3 years ago
6 0

Answer:

25%

Explanation:

The expected before-tax IRR on a potential real estate investment is 14%

The expected after-tax IRR is 10.15%

Therefore, the effective tax rate on this investment can be calculated as follows

Effective tax rate= 1-(after-tax IRR/before-tax IRR)

Effective tax rate= 1-(10.15/14)

= 1-0.75

= 0.25×100

= 25%

Hence the effective tax rate is 25%

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Rex's doughnuts can produce only 100 doughnuts a day. the variable cost incurred per unit is $2 and fixed costs incurred per day
vladimir1956 [14]
The total cost that is incurred by producing 100 doughnuts is equal to the sum of the variable cost and the fixed cost. The total variable cost is,
    total variable cost = ($2/doughnut)(100 doughnuts) = $200

The total cost is,
   Total cost = total variable cost + total fixed cost
     TC = $200 + $500 = $700

Equating the cost and the revenue,
     TC = TR
     $700 = (100)(x)

The value of x from the equation is $7.

ANSWER: $7. 
3 0
3 years ago
XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are exp
Verizon [17]

Answer:

Price of stock  = $40

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8

g- growth rate - 10%

r- required rate of return - 15%

Price of stock = 1.8× (1.1)/(0.15-0.1)

                    = $40

6 0
3 years ago
Identify which of the following statements is true.
JulijaS [17]

Answer:

A.

Explanation:

Organizational expense amortized over fifteen years for purposes of determining taxable income results in an upper adjustment in the initial years to book income on the Schedule Minus−1 when the expense is being amortized over ten years for book income purposes.

4 0
3 years ago
Which of the following is the best advice for written communication that is highly important?
Elodia [21]

Answer:

"D" is the correct answer!

Explanation:

Written communication is the use of a printed message, such as letters, training manuals, memos, proposals and emails. Emails. memos etc are all technology channels or apps.

4 0
2 years ago
Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2020. Mio's salary for 2020 is $190
vfiekz [6]

Answer:

Mio's foreign earned income exclusion is $99,960

Explanation:

The calculation of the Mio's foreign earned income exclusion is given below:

The foreign earned income exclusion limit for 2020 is $107,600

Now the foreign earned income exclusion depend on days equivalent to

=  Foreign earned income exclusion limit × (2020 days ÷ total number of days in a year)

= $107,600 × (340 days ÷ 366 days)

= $99,960

Hence, Mio's foreign earned income exclusion is $99,960

7 0
3 years ago
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