Based on the calculation below, incremental after-tax operating cash flow is $675,000
<h3>How to calculate incremental after-tax operating cash flow</h3>
This can be calculated as follows:
Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000
Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000
Therefore, we have:
Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000
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Answer:
is the amount that sellers are willing and able to sell at a particular price.
Explanation:
Quantity supplied refers to the amount of goods sold or supplied at a particular price by the sellers in the market. According to the law of supply, there is a positive relationship between the price of the commodity and the quantity supplied of that commodity.
This indicates that an increase in the price of the commodity will lead to increase the quantity supply of the commodity and a decrease in the price of the commodity will lead to decrease the quantity supplied of the commodity.
D. Interest paid on the mortgage of your home is tax deductible
Answer:
E(5r5) = 0.06
Explanation:
The expected rate <u><em>(which is the the projected return on a monetary investment)</em></u> on the treasury bonds at 4.05% can be calculated as seen below:
Rate on 5-year Treasury Bonds, E(r5) = 2.20%
Rate on 10-year Treasury Bonds, E(r10) = 4.05%
(1 + E(r5))^5 * (1 + E(5r5))^5 = (1 + E(r10))^10
1.0220^5 * (1 + E(5r5))^5 = 1.0405^10
1.11495 * (1 + E(5r5))^5 = 1.48738
(1 + E(5r5))^5 = 1.33403
1 + E(5r5) = 1.05933
E(5r5) = 0.05933
E(5r5) = 0.06
