Answer:
8.1%
Explanation:
Firstly, let look at the formula for calculating weighted average cost of capital (WACC):
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E + (PE/A) x r_PE, where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
PE: Market value of company preferred equity;
r_D: cost of debt;
r_E: cost of equity/retained earnings;
r_PE: cost of preferred equity;
t: tax rate
Putting all the numbers together, we have:
WACC = 35% x 6.5% x (1-25%) + 55% x 10.5% + 10% x 6% = 8.1%
$16.35 is the new hourly wages. $15 increase by 9% is 16.35
Here are the choices:
A) assessed value minus current value.
B) subjective value using the cost approach.
C) utility value after income has been determined.
D) probable price the property will bring
The best answer is D. probable price the property will bring
. This can be done by looking at the properties that have been sold recently in the marketing area of the property.
Answer:
Explanation:
Tonya Jefferson (single), a sole proprietor, runs a successful lobbying business in Washington, DC. She doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business, to buy a place somewhere sunny and warm. Tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. The original basis in the townhouse was $600,000, and she has claimed $250,000 of depreciation deductions against the asset over the years. The original basis in the land was $500,000. Tonya has located a buyer that would like to finalize the transaction in December of the current year. Tonya's marginal ordinary income tax rate is 35 percent, and her capital gains tax rate is 20 percent.
Required:
a. What amount of gain or loss does Tonya recognize on the sale? What is the character of the gain or loss? What effect does the gain and loss have on her tax liability?
b. In additional to the original facts, assume that Tonya reports the following nonrecaptured 1231 loss:
Year Net §1231 Gains/(Losses)
Year 1 ($200,000)
Year 2 0
Year 3 0
Year 4 0
Year 5 0
Year 6 (current year) ?
c. What amount of gain or loss does Tonya recognize on the sale? What is the character of the gain or loss? What effect does the gain or loss have on her year 6 (the current year) tax liability?
d. Assuming the unrecaptured 1231 loss in part (b), as Tonya's tax advisorcould you make a suggestion as to when Tonya should sell the townhouse inorder to reduce her taxes? What would Tonya?s tax liability be if she adoptsyour recommendation??
increased by less than $100 billion.
According to the crowding-out effect of expansionary fiscal policy, when the economy is operating at full capacity, a rise in additional public sector spending results in a decrease in private sector spending. Tax increases and bond borrowings are the two main ways that the government pays for spending.
The decrease in private sector investments brought on by higher public sector spending is explained by the crowding-out effect. This means that when a country's economy is operating at capacity, increasing government spending could hurt the private sector. Government spending that exceeds normal levels can lead to an increase in indebtedness on the part of the government.
Learn more about crowding-out here:
brainly.com/question/19130317
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