Capital Tax Rate News and Recent Updates
Tax changes may mean adjusting your investment strategy
The American Taxpayer Relief Act (ATRA), passed on Jan. 2, affects income and estate taxes, as well as capital gains and qualified dividends. Because tax rates, in general, went up, you may want to talk with your financial advisor or accountant ...
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Tax Havens Allow Economic Vitality
... for uncompetitive high-tax nations to track and tax flight capital. Thanks to this process of tax competition, with havens playing a key role, top personal income tax rates have dropped from an average of more than 67 percent in 1980 to ...
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10 tax dodges that help the rich get richer
he owes the federal government 20 percent in taxes– the current tax rate on long-term capital gains– rather than the 39.6 percent rate that applies to ordinary income. This dodge halves his effective tax rate on these earnings. It’s just ...
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Obamas Report Income of $608,611 as Tax Rate Declines
He wanted to raise income-tax rates for individuals making more than $200,000 and ... The Obamas reported $11,462 in taxable interest and $2 in dividends while taking a $3,000 capital loss against their ordinary income. According to financial ...
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California Raises $2.7 Billion as Rate Boost Lifts Demand
The most-indebted state sold $1.25 billion for capital projects and about $1.5 billion to refinance ... California voters in November boosted income-tax rates on residents earning $250,000 or more, with levies on incomes of $1 million or more ...
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Determining appropriate corporate tax rate
A parochial issue -- one which was discussed vigorously during the U.S. 2007 – 2009 economic contraction -- is how does corporate Federal income tax policy affect incentives for businesses to undertake new investments in capital goods? Most economists ...
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Issue 3 would increase Massillon income-tax rate
The city income-tax rate is 1.8 percent and would increase to 2.1 percent ... Overall, the measure is expected to garner an additional $2.1 million for the city’s general fund and capital improvements, starting in July, if approved by electors.
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What do tax policy experts think about US tax policy?
63 percent believe that lower marginal tax rates increase private saving and 52 percent think a lower capital gains tax rate encourages investment and economic growth. 11 percent believe that "lower marginal tax rates increase work effort and ...
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Manhattan Apartment Prices Have Declined As Sellers Rushed To Settle On 2012's Capital Gains Tax Rate (INFOGRAPHIC)
Here’s the good news, for buyers anyway: Manhattan apartment prices have declined in some of the toniest neighborhoods in one of the most expensive cities in America. Here’s the bad news: You probably still can’t afford to buy them, even if you ...
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Obama Tax Cap Seen Slowing Issuance From 2010 High: Muni Credit
Yet 61 percent also said they’d cut the number of capital projects if a limit on munis’ tax-exemption were imposed. Municipalities have sold $85 billion of long-term, fixed- rate debt this year, ahead of the pace last year, when they issued ...
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Progressive Millionaire Barack Obama Pays 18.4% Tax Rate
America’s progressive millionaire president Barack Obama is a class warrior par excellence. But like 99% of progressives, his wealth redistribution ideas are for thee and not for me. Take his taxes, for instance. The Wall Street Journal is reporting that President Obama paid an effective tax rate of
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Guest Blog By Gerry Cole Braun Answers Socialist International President George Papandreou On Tax Havens
"But the thing we have to deal with is the economy and poverty. And we cannot deal with the poverty unless we look at a global economy. We have more money in tax havens almost than we have in circulation. And that`s why we have deficits. Economists say $20 trillion tax haven. "Forbes" was saying fro
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German support for the European project should not be taken for granted
Robert Grimm and Marius Guderjan argue that Germany’s relative economic well-being and prosperity partly explains the continuous support of the German people for the European project. However, there has been a growth in euroscepticism in the country in recent years. Whilst history might have made Ge
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Hong Kong Offshore Company Setup Advantages
The most common advantages for setting up an offshore company in Hong Kong are: · Ease of offshore company setup : Hong Kong is one of the most liberal places to do business in the world. Setting up a company in Hong Kong is effortless and easy, which is far away from unnecessary bureaucracy or red-
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Richard Eskow: Ten Facts Obama Doesn't Want You to Know About!
The chained CPI proposal in President Obama's budget, continues to draw much deserved fire, which is only likely to increase, as more information about it becomes known. Here are ten embarrassing facts about the chained CPI, which the White House and its defenders would prefer to see overlooked: 1.
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Its a sellers market for Mumbai builders
I have been following several reports on Mumbai real-estate being in the hunt of a house. Most reports I have been reading are positive that there is going to be a correction this year, and the real-estate bubble in all major cities in India including Mumbai is definitely going to burst. Unfortunate
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Economic and Monetary Union of Europe. Includes personal comment
The main curtilage for creating a atomic number 63an Market was the increase international competitiveness. In the mid of the eighties the European countries recognized that in the long run the national economies alone wont be able to compete against countries like the US, Japan and the modern indus
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Petrobras Debt Crunch Buoys Exxon’s Prospects in Brazil: Energy
Petroleo Brasileiro SA (PETR4)’s worst debt position in a decade is boosting chances the Brazilian oil company will step aside and let Exxon Mobil Corp. (XOM) and Royal Dutch Shell Plc (RDSA) buy offshore exploration licenses in Latin America’s biggest auction this year. Exxon has been the most acti
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Countrywide Florida Home Loan
Getting home loans depending on the countrywide florida home loan a problem today provided you are recommended to pay for their daily needs; they have their own EMI table when calculating the countrywide florida home loan with your existing bank. So you must confirm that the countrywide florida home
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Delaware River Dredging
While the Delaware Bay becomes the delaware river dredging in Delaware you will find the delaware river dredging be running. If you are looking to move to a separate assembly, which first met in 1704. Delaware maintained quasi-autonomy until the delaware river dredging of Delaware was at the delawar
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Capital Tax Rate Answers
Open Question: AP Macroeconomics investment spending?
HI I need some help with this problem :
Production Function Y = K bar ^(0.5) L bar ^(0.5) and the supplies of capital (k bar) and labor (l bar) are fixed respectively, K bar = 1000 , L bar = 1000.
Consumption, investment , and government taxes are given by :
C = 50 + .75 ( Y - T bar)
I = 450 - 3000r
G bar = 50 T bar = 50
a) Solve for investment spending, and the real interest rate in this economy.
Thanks :)
moreResolved Question: Why would rich supply siders rather see America collapse than even pay the Reagan era tax rates?
Ronaldus lowered taxes to 50% on the rich. Today, they pay anywhere from 0% to 35%. Austerity is demanded for the working class, while the rich pimp Congress like a $2 whore in Muscle Shoals, Alabama. WTF, America? Are we morons to put up with this crap or what?Yes. Rich corporations and wealthy investors create millions of jobs ... in China and India. The American worker is obsolete thanks to politicians lowering tax rates on the rich and not expecting one job created in America for Americans in exchange. It's not working, because you can't reward people for actively seeking to cause higher unemployment to better their bottom line. That's the definition of insanity. Repeating the same mistakes of the past (supply side economics) expecting different results (lower US unemployment). 80% of American jobs are based on service sector jobs, and even those are being replaced by foreign labor and increased technology.
moreOpen Question: Finance WACC HELP PLEASE?
Examine the following book-value balance sheet for University Products, Inc. The preferred stock currently sells for $10 per share and the common stock for $20 per share.
BOOK VALUE BALANCE SHEET
(all values in millions)
Assets Liabilities and Net Worth
Cash and short-term securities$ 3.0 Bonds, coupon = 5%, paid annually
(maturity = 10 years, current yield to
maturity = 7%)$ 20.0
Accounts receivable 6.0 Preferred stock (par value $10 per
share) 1.0
Inventories 10.0 Common stock (par value $0.4) 0.2
Plant and equipment 23.0 Additional paid-in stockholders’ equity 11.8
Retained earnings 9.0
Total$42.0 Total$42.0
If the preferred stock pays a dividend of $1 per share, the beta of the common stock is 0.6, the market risk premium is 8%, the risk-free rate is 4%, and the firm’s tax rate is 40%, what is University’s weighted-average cost of capital? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
moreResolved Question: Why specifically do so many people in Canada not like Stephen Harper other than being NDP or LPC?
I hear a lot of people complaining but I never hear anything more specific than "He's too secretive" or "he's cold hearted", either one of which can be appropriate under certain circumstances.
moreOpen Question: Difference in ROE for Restricted and Relaxed Policies?
Buchholz Corporation follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restricted or maybe to a relaxed policy. The firm's annual sales are $400,000; its fixed assets are $100,000; its target capital structure calls for 50% debt and 50% equity; its EBIT is $35,000; the interest rate on its debt is 10%; and its tax rate is 40%. With a restricted policy, current assets will be 15% of sales, while under a relaxed policy they will be 25% of sales. What is the difference in the projected ROEs between the restricted and relaxed policies?
a) 4.25%
b) 4.73%
c) 5.25%
d) 5.78%
e) 6.35%
moreResolved Question: Why is it so many people dislike Margaret Thatcher, even after her death?
Bearing in mind I was born in the 1990's, I really have no idea as to what she did for this country.
I wasn't taught about it, and I hadn't planned on reading into it. Her death came as a surprise, and now I'm curious as to what she did for this country that could have possibly been so bad.
My dad said she ''made the rich richer, and the poor poorer'' is that true?
And what else could she have done?
moreResolved Question: When will the NeoLibertarians AKA Libertarian rejects, learn that Ayn Rand was the complete opposite of?
a Libertarian?
So is her cronny follower Rand Paul
As soon as they learn this concept and accept it, the sooner they can move to the real Libertarian ideology, created from the grassroots movements of Anarcho Syndicalismumm you do realize that Ron Paul is a libertarian reject too, right?
moreOpen Question: What are credit facilities? Which is needed for this question?
Daniel Grey has purchased a home currently worth $300 000 with a bank mortgage of $150 000 over the home. He has net monthly disposable income of $2000 after tax, living expenses and mortgage payments. He has no other commitments but has savings of $50 000 and wishes to buy an investment property with a price of $250 000 and a rental income of $900 per month. He wishes to finance the balance of $200 000 with an interest-only mortgage over the investment property, and the monthly payments of interest are $1300. There is thus a net annual tax deduction of at least $8000 available (interest, rates, insurance and repairs less rental income). The loan would be repaid in 5 years by the sale of the investment property, and Daniel expects to receive a capital gain from the capital appreciation of the property. Interest rates are volatile and are moving upwards.
(a) What type of credit facility is needed?
(b) What is the current interest rate on this loan?
moreResolved Question: Rather be Canadian or American?
Personally, I'm Canadian, I love Canada, I love the snow and the open space, I love the perks of being Canadian, but would You rather be Canadian or American??
moreOpen Question: How to calculate the WACC?
I am studying for an exam and our lecturer has refused to give us any solutions. Could someone please post a solution to this or even a link to a good website that I could get similar questions with solution.
(b)Calculate the WACC in the following case:
•The company has 2,400,000 shares, currently sold for €1.50 per share.
•The company’s debt/equity ratio is 0.3. The interest paid last year by the company was €400,000.
•The firm’s corporate tax rate TC is 12.5%.
•The firm’s cost of equity rE is 8%.
Analyse your results. Are they as expected? Explain why.
Describe critically any two limitations of using the weighted average cost of capital (WACC) when making investment decisions.
Thanks!
moreOpen Question: can any one help me answer this ECON questions? it is 10 PTS?
1/ Which of the following is an example of an automatic stabilizer?
Answer
a/ The reduction in the money supply that occurs as banks become less willing to make loans during a recession
b/ The reduction in real wages that occurs as the economy goes into a recession
c/ The increase in government spending that occurs as the result of new spending bills passed by Congress
d/ The rise in tax revenue that occurs as a result of growth in real GDP
e/ All of the choices are examples of an automatic stabilizer.
2/ Taxes in the United States are automatic stabilizers in that
Answer
a/ tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand.
b/ tax revenues decrease when income increases, intensifying the increase in aggregate demand.
c/ the President can increase tax rates whenever he deems such policy appropriate.
d/ tax rates can be adjusted by Congress to counteract economic fluctuations.
3/ As the economy contracts, tax revenues ________ and transfer payments _________.
Answer
a/fall; rise
b/fall; fall
c/ rise; fall
d/ rise; rise
4/ As a result of the action of automatic stabilizers,
Answer
a/ the government budget changes offset changes in national income.
b/ the government has had decreasing budget deficits over time.
c/ taxes and government spending rise when the economy enters a recession.
d/ taxes and government spending fall when the economy enters a recession.
5/ Large budget deficits tend to
Answer
a/ raise interest rates.
b/ lower interest rates.
c/ have no effect on interest rates.
6/ If the national debt is declining, then there
Answer
a/ may be a deficit.
b/ must be a deficit.
c/ may be a surplus.
d/ must be a surplus.
7/ A federal budget surplus
Answer
a/ did not occur in the United States economy during the twentieth century.
b/ occurs when government expenditures exceed taxation.
c/ occurs when government tax revenues and expenditures are equal.
d/ causes the national debt to increase.
e/ occurs when government expenditures are less than government tax revenues.
8/ The "crowding-out effect" suggests that
Answer
a/ government spending is increasing at the expense of private investment.
b/ imports are replacing domestic production.
c/ private investment is increasing at the expense of government spending.
d/ consumption is increasing at the expense of investment.
9/ Even if the economy has considerable excess capacity, new government spending that creates new jobs involves opportunity costs because
Answer
a/ goods other than those purchased by government could have been produced and consumed.
b/ unemployed workers are unwilling to surrender leisure time to take paid jobs.
c/ excess capacity implies that the capital stock exceeds equilibrium.
d/ government employment is inefficient relative to jobs in the private sector.
e/ expansionary monetary policy stimulates employment without growth of national debt.
10/ Budget deficits are appropriate during
Answer
a/ recessions, but not inflations.
b/ inflations, but not recessions.
c/ recessions and inflations.
d/ neither recessions nor inflations.
moreOpen Question: NEED HELP ON ECONOMICS 10 QUESTIONS?
1/ Which of the following is an example of an automatic stabilizer?
Answer
a/ The reduction in the money supply that occurs as banks become less willing to make loans during a recession
b/ The reduction in real wages that occurs as the economy goes into a recession
c/ The increase in government spending that occurs as the result of new spending bills passed by Congress
d/ The rise in tax revenue that occurs as a result of growth in real GDP
e/ All of the choices are examples of an automatic stabilizer.
2/ Taxes in the United States are automatic stabilizers in that
Answer
a/ tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand.
b/ tax revenues decrease when income increases, intensifying the increase in aggregate demand.
c/ the President can increase tax rates whenever he deems such policy appropriate.
d/ tax rates can be adjusted by Congress to counteract economic fluctuations.
3/ As the economy contracts, tax revenues ________ and transfer payments _________.
Answer
a/fall; rise
b/fall; fall
c/ rise; fall
d/ rise; rise
4/ As a result of the action of automatic stabilizers,
Answer
a/ the government budget changes offset changes in national income.
b/ the government has had decreasing budget deficits over time.
c/ taxes and government spending rise when the economy enters a recession.
d/ taxes and government spending fall when the economy enters a recession.
5/ Large budget deficits tend to
Answer
a/ raise interest rates.
b/ lower interest rates.
c/ have no effect on interest rates.
6/ If the national debt is declining, then there
Answer
a/ may be a deficit.
b/ must be a deficit.
c/ may be a surplus.
d/ must be a surplus.
7/ A federal budget surplus
Answer
a/ did not occur in the United States economy during the twentieth century.
b/ occurs when government expenditures exceed taxation.
c/ occurs when government tax revenues and expenditures are equal.
d/ causes the national debt to increase.
e/ occurs when government expenditures are less than government tax revenues.
8/ The "crowding-out effect" suggests that
Answer
a/ government spending is increasing at the expense of private investment.
b/ imports are replacing domestic production.
c/ private investment is increasing at the expense of government spending.
d/ consumption is increasing at the expense of investment.
9/ Even if the economy has considerable excess capacity, new government spending that creates new jobs involves opportunity costs because
Answer
a/ goods other than those purchased by government could have been produced and consumed.
b/ unemployed workers are unwilling to surrender leisure time to take paid jobs.
c/ excess capacity implies that the capital stock exceeds equilibrium.
d/ government employment is inefficient relative to jobs in the private sector.
e/ expansionary monetary policy stimulates employment without growth of national debt.
10/ Budget deficits are appropriate during
Answer
a/ recessions, but not inflations.
b/ inflations, but not recessions.
c/ recessions and inflations.
d/ neither recessions nor inflations.
moreOpen Question: I NEED HELP ON THIS ECON 10 QUESTIONS?
1/ Which of the following is an example of an automatic stabilizer?
Answer
a/ The reduction in the money supply that occurs as banks become less willing to make loans during a recession
b/ The reduction in real wages that occurs as the economy goes into a recession
c/ The increase in government spending that occurs as the result of new spending bills passed by Congress
d/ The rise in tax revenue that occurs as a result of growth in real GDP
e/ All of the choices are examples of an automatic stabilizer.
2/ Taxes in the United States are automatic stabilizers in that
Answer
a/ tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand.
b/ tax revenues decrease when income increases, intensifying the increase in aggregate demand.
c/ the President can increase tax rates whenever he deems such policy appropriate.
d/ tax rates can be adjusted by Congress to counteract economic fluctuations.
3/ As the economy contracts, tax revenues ________ and transfer payments _________.
Answer
a/fall; rise
b/fall; fall
c/ rise; fall
d/ rise; rise
4/ As a result of the action of automatic stabilizers,
Answer
a/ the government budget changes offset changes in national income.
b/ the government has had decreasing budget deficits over time.
c/ taxes and government spending rise when the economy enters a recession.
d/ taxes and government spending fall when the economy enters a recession.
5/ Large budget deficits tend to
Answer
a/ raise interest rates.
b/ lower interest rates.
c/ have no effect on interest rates.
6/ If the national debt is declining, then there
Answer
a/ may be a deficit.
b/ must be a deficit.
c/ may be a surplus.
d/ must be a surplus.
7/ A federal budget surplus
Answer
a/ did not occur in the United States economy during the twentieth century.
b/ occurs when government expenditures exceed taxation.
c/ occurs when government tax revenues and expenditures are equal.
d/ causes the national debt to increase.
e/ occurs when government expenditures are less than government tax revenues.
8/ The "crowding-out effect" suggests that
Answer
a/ government spending is increasing at the expense of private investment.
b/ imports are replacing domestic production.
c/ private investment is increasing at the expense of government spending.
d/ consumption is increasing at the expense of investment.
9/ Even if the economy has considerable excess capacity, new government spending that creates new jobs involves opportunity costs because
Answer
a/ goods other than those purchased by government could have been produced and consumed.
b/ unemployed workers are unwilling to surrender leisure time to take paid jobs.
c/ excess capacity implies that the capital stock exceeds equilibrium.
d/ government employment is inefficient relative to jobs in the private sector.
e/ expansionary monetary policy stimulates employment without growth of national debt.
10/ Budget deficits are appropriate during
Answer
a/ recessions, but not inflations.
b/ inflations, but not recessions.
c/ recessions and inflations.
d/ neither recessions nor inflations.
moreOpen Question: can any one help me answer this ECON questions? it is 10 PTS?
1/ Which of the following is an example of an automatic stabilizer?
Answer
a/ The reduction in the money supply that occurs as banks become less willing to make loans during a recession
b/ The reduction in real wages that occurs as the economy goes into a recession
c/ The increase in government spending that occurs as the result of new spending bills passed by Congress
d/ The rise in tax revenue that occurs as a result of growth in real GDP
e/ All of the choices are examples of an automatic stabilizer.
2/ Taxes in the United States are automatic stabilizers in that
Answer
a/ tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand.
b/ tax revenues decrease when income increases, intensifying the increase in aggregate demand.
c/ the President can increase tax rates whenever he deems such policy appropriate.
d/ tax rates can be adjusted by Congress to counteract economic fluctuations.
3/ As the economy contracts, tax revenues ________ and transfer payments _________.
Answer
a/fall; rise
b/fall; fall
c/ rise; fall
d/ rise; rise
4/ As a result of the action of automatic stabilizers,
Answer
a/ the government budget changes offset changes in national income.
b/ the government has had decreasing budget deficits over time.
c/ taxes and government spending rise when the economy enters a recession.
d/ taxes and government spending fall when the economy enters a recession.
5/ Large budget deficits tend to
Answer
a/ raise interest rates.
b/ lower interest rates.
c/ have no effect on interest rates.
6/ If the national debt is declining, then there
Answer
a/ may be a deficit.
b/ must be a deficit.
c/ may be a surplus.
d/ must be a surplus.
7/ A federal budget surplus
Answer
a/ did not occur in the United States economy during the twentieth century.
b/ occurs when government expenditures exceed taxation.
c/ occurs when government tax revenues and expenditures are equal.
d/ causes the national debt to increase.
e/ occurs when government expenditures are less than government tax revenues.
8/ The "crowding-out effect" suggests that
Answer
a/ government spending is increasing at the expense of private investment.
b/ imports are replacing domestic production.
c/ private investment is increasing at the expense of government spending.
d/ consumption is increasing at the expense of investment.
9/ Even if the economy has considerable excess capacity, new government spending that creates new jobs involves opportunity costs because
Answer
a/ goods other than those purchased by government could have been produced and consumed.
b/ unemployed workers are unwilling to surrender leisure time to take paid jobs.
c/ excess capacity implies that the capital stock exceeds equilibrium.
d/ government employment is inefficient relative to jobs in the private sector.
e/ expansionary monetary policy stimulates employment without growth of national debt.
10/ Budget deficits are appropriate during
Answer
a/ recessions, but not inflations.
b/ inflations, but not recessions.
c/ recessions and inflations.
d/ neither recessions nor inflations.
moreResolved Question: Margaret Thatcher.....?
Hi guys, I was just wondering.... even though lots of people are sad that Margaret died, why are some people rejoicing? What did she do that was so bad? I mean, she was the first female British prime minister, and did great things for Britain, but what bad thing are people hating her for doing?
Thanks in advance :)
moreResolved Question: About Margareth Thatcher?
Hi, I´m brazilian and would like to know what really the British people think about the Margareth Thatcher´s government?. I make this question because here in Brazil, many people say that Thatcher was bed and deserves to burn in the hell. I understand that is wrong, because no one, except the own British people can make judgement about her, furthermore ,is easy to judge the dead because they can not defend themselves
moreOpen Question: I need step by step assistance with the EBIT Finance problem?
(EBIT – EPS analysis) John Dash and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum cleaners and accessories. These stores would be located in Dallas, Miami, and North Dakota. To finance the new venture two plans have been proposed:
•Plan A is an all-common-equity structure in which $2.2 million dollars would be raised by selling 82,000 shares of common stock
•Plan B would involve issuing $1.5 million dollars in long-term bonds with an effective interest rate of 12.2% plus $0.7 million would be raised by selling 41,000 shares of common stock. The debt funds raised under Plan B have no fixed maturity date, in that this amount of financial leverage is considered a permanent part of the firm’s capital structure.
John and his partners plan to use a 40% tax rate in their analysis, and they have hired you on a consulting basis to do the following.
a.Find the EBIT indifference level associated with the two financing plans.
b.Prepare a pro forma income statement for EBIT level solved for in Part a. that shows that EPS will be the same regardless whether Plan A or B is chosen
Formula: (EBIT-Interest expenseStock Plan) x (1-tax rate) = (EBIT – InterestBond Plan) x (1 – tax rate)
Shares OutstandingStock Plan Shares OutstandingBond Plan
I got as far as: (EBIT – 0) x (1 - -38%) = (EBIT – 141,600) x (1-38%)
82,000 41,000
PLEASE HELP
moreResolved Question: Views on Margaret thatcher?
Some ppl say she privatised the UK,others said she divided Britain into lower and upper class,others said she had a ironing personality,and what's your view ?
moreResolved Question: Supply Side Economics?
Hi there, I'm just having a bit of trouble with my hw.
1. Under what conditions in the economoy is supply side economics most effective? under what conditions could it be less effective? Why?
Thanks so much!
moreVoting Question: Need help on accounting problem?
This problem I am totally lost on:
East Ridge Company is considering a capital project that delivers a $51,500 annual net cash inflow before tax. The investment will result in annual depreciation expense of $10,600 over the project's four-year useful life. Assuming a tax rate of 40%, what amount of annual after-tax net cash flow will be provided by this project?
A)$24,540
B)$35,140
C)$16,360
D)$40,900
I have no clue where to begin here for a test review. Can anyone help?
moreResolved Question: Is it possible to tax your way to prosperity?
moreResolved Question: What are the pros and cons to Reaganomics? PLEASE ANSWER!?
I was wondering what are the pros and cons to Reaganomics and deregulation as opposed to keynesian theory and regulation.
moreResolved Question: Calculate the net present value of the project if the current tax rate is 30% and the nominal discount rate fo?
Question 1. HeatStreet Eats is evaluating a piece of equipment for its new line of goods.
The cost is $198,000 with installation costs of $12,000. Due to the new equipment, it is estimated that the net cashflows for the next five years will be $75,000 pa (before tax). Prime cost depreciation will be used for the five years at 20% pa and a salvage value at the end of the five years of $25,000. In addition, extra working capital of $15,000 will need to be spent and it is anticipated that 90% of these costs will be recovered at the end of the project.
Calculate the net present value of the project if the current tax rate is 30% and the nominal discount rate for the company is 12% pa.How do I work this question out?
moreResolved Question: Why is there so much hate for Margaret Thatcher?
I am only 16 and not really into politics ect but i do find it really disrespectful that people are making jokes about it and thanking her for dying she surely wasn't that bad was she? Some one please explain the hate i fell sorry for her she did just die! Please dont be rude!
moreResolved Question: question on working out the current interest rate for finance?
Daniel Grey has purchased a home currently worth $300 000 with a bank mortgage of $150 000 over the home. He has net monthly disposable income of $2000 after tax, living expenses and mortgage payments. He has no other commitments but has savings of $50 000 and wishes to buy an investment property with a price of $250 000 and a rental income of $900 per month. He wishes to finance the balance of $200 000 with an interest-only mortgage over the investment property, and the monthly payments of interest are $1300. There is thus a net annual tax deduction of at least $8000 available (interest, rates, insurance and repairs less rental income). The loan would be repaid in 5 years by the sale of the investment property, and Daniel expects to receive a capital gain from the capital appreciation of the property. Interest rates are volatile and are moving upwards.
(a) What type of credit facility is needed?
(b) What is the current interest rate on this loan?
i just need help with (b), new to finance. thankyou in advance :)
moreResolved Question: can somebody explain to me how stock & cash dividends work?
so I have stocks in a corporation, every time the corporation makes a profit, part of that profit is added to the value of each stock, so if I have $100 in stocks and the corporation makes a 5% profit, I'm getting 5 dollars added to the stocks in total, so I would have to sell some of them to get the 5 dollars and leave my investment of $100 in less shares. I thought this was called stock dividend, but I read stock dividends are given to you in additional stocks, and that the value of the company doesnt go up, which doesn't make sense to me because if there is a company that makes a profit and the profit is given in stocks wouldn't the value of the company had to go up in order to have a profit, if you get additional stocks but the ones you had lower in value then means you really didn't get a profit. Same happens with cash dividends, you get cash but the value of your stocks go down, so there is no profit either. Can somebody explain how I'm wrong and what type of dividends are the ones I mentioned first where the dividend gets added to each stock you own?
here's the link with the information I don't get: http://www.investopedia.com/ask/answers/05/stockcashdividend.asp
moreResolved Question: accounting question help?
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.1 million. The machinery can be sold to the Romulans today for $7.3 million. Klingon’s current balance sheet shows net fixed assets of $3.9 million, current liabilities of $820,000, and net working capital of $141,000. If all the current assets were liquidated today, the company would receive $935,000 cash.
Requirement 1:
What is the book value of Klingon’s assets today? (Do not include the dollar sign ($).Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)
Book value$ 4861000
Requirement 2:
What is the market value? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)
Market value$ ????
I cannot for the life of me figure this out, in the book answer it just says market value but never explains how it got it but I must be missing some equation to get it or something??
You are given the following information for Sookie’s Cookies Co.: sales = $52,300; costs = $38,500; addition to retained earnings = $3,000; dividends paid = $990; interest expense = $1,450; tax rate = 30 percent.
Required:
Calculate the depreciation expense. (Do not include the dollar sign ($).)
moreResolved Question: Help me solve the problem?
Hindalco is considering an investment in new plant of $3 million. The project will be financed with a loan of $2,000,000 which will be repaid over the next five years in equal annual end of year instalments at a rate if 9.5 percent pa. Assume straight-line depreciation over a five-year life, and no taxes. The projects cash flows before loan repayments and interest are shown in the table below. Cost of capital is 14.25% pa (the required rate of return on the project). A salvage value of $200,000 is expected at the end of year five and is not included in the cash flows for year five below. Ignore taxes and inflation.
YearYear OneYear TwoYear ThreeYear FourYear Five
Cash Inflow850,000950,000800,000900,000950,000
You are required to calculate:
(1)The annual loan repayment
(2)NPV of the project
(3)the IRR of the project
(4)AE, the annual equivalent for the project(AE or EAV)
(5)PB, the payback in years (to one decimal place)
(6)ARR, the accounting rate of return (gross)
(7)PI (present value index or profitability index)
(8)Is the project acceptable?
moreResolved Question: I really need help with Economics?
I really need to get a good grade on this, but I have a lot of trouble with Economics. Please Help?
1. What is the savings rate? (1 point)
proportion of disposable income spent to income saved
percentage of people who save a significant amount of their income
rate of interest paid on bank account savings
difference between rate charged to borrow and rate paid on savings
2. If the government uses tax money to pay for long–term investments such as roads or other infrastructure, what happens to the economy? (1 point)
investment decreases
investment increases
taxes increase
taxes decrease
3. What is one way to measure technological progress? (1 point)
any increases in capital minus increases in labor
any increases in labor minus increases in capital
total growth plus increases in capital and labor
total growth minus increases in capital and labor
4. What is labor productivity? (1 point)
the total number of workers in an economy
the amount of output produced per worker
the total amount of work produced in an economy
the average training per worker
5. How can a trade deficit actually increase the productivity of an economy? (1 point)
by causing people to save
by building up a large amount owed
by importing funds used for capital deepening
by importing goods for short–term use
6. Real GDP (1 point)
distorts the price level in the GDP.
expresses GDP in constant prices.
measures only intermediate goods.
is another term for GNP.
7. The average of all prices in the economy is the (1 point)
aggregate supply.
aggregate demand.
price level.
gross national product.
8. What is a business cycle? (1 point)
a period of increased economic growth
a period of economic growth followed by economic contraction
the amount of time it takes a business to produce its products
a dangerous time for all businesses
9. The period in a business cycle when real GDP stops falling is (1 point)
expansion.
peak.
contraction.
trough.
10. What is a recession? (1 point)
a period when real GDP falls for at least 6 months
a long and severe depression
a very mild and short expansion
a period of when the economy is neither expanding nor contracting
moreResolved Question: Are capital gains on a Federal 1041 taxed at the same rate as an individuals 1040?
moreResolved Question: How would you invest this sum of money to ensure a modest income/living abroad?
Hello,
Assuming someone had 200K to invest abroad ( anywhere in the world ) in order to ensure himself a modest living/income; where and how would you advise them to do so ?
I realize that all over the world there's a recession etc. although I've been considering the Caribbean ( Trinidad and Tobago ) or somewhere in SE Asia.
I'm a single 38 yrs old male and would like to settle somewhere as an expat for good with the above mentioned capital.
Most people have told me that Latin America is not safe, and if someone wants to be in a safe and clean area then they would have to pay European prices ( I'm familiar with this scenario as it happened to me during my visit to the Philippines, fantastic people etc. but if you want a decent and safe place to live, you will be paying European prices ).
The only advantage I see in moving to Latin America is the language ( I speak fluent Italian/Spanish )
and they're Catholic.
In Asia it's the opposite, can't learn the language and can't read...although I've spent a few years as a long term resident in Thailand, with short stays in Cambodia, Laos and Burma.
But what I'm mostly concerned about is HOW to invest the sum mentioned above in a wise manner.
And what kind of activity would you recommend; for example: opening a motorbike rent shop, money exchange, buy property to lease etc. obviously I intend to sink some of that amount to buy my own place to live in, but I am also very open to New ideas.
I hope i was clear and would really appreciate Your insights/advice.
btw, I'm a self-made man with no family or parents.
moreResolved Question: Assume a company has a Beta of 1.85 at a time when the risk-free rate is 10% and the expected return on the ma?
Assume a company has a Beta of 1.85 at a time when the risk-free rate is 10% and the expected return on the market portfolio is 15%. The company’s capital structure, based on market values, is 50% long-term debt with a yield to maturity of 12% pretax and 50% equity, all common stock. The company has a marginal tax rate of 30%.
a. What is its weighted average cost of capital (WACC)?
moreResolved Question: Can anyone give me an explanation on President Reagan's tax cuts?
how does it increase revenue?
moreResolved Question: Can international students work in Bulgaria? Part Time?
What is the wage rate working hour per week and mainly is it even allowed??
moreResolved Question: WACC & Cost of Equity - FINANCE HELP?
Molly Corp. has no debt but can borrow at 8%. The firm’s WACC is currently 15% and the tax rate is 35%.
a) Calculate the cost of equity for Molly Corp.
b) Assuming the firm converts to a debt-equity ratio of 1.5. Calculate the new WACC of the firm.
I have found out A:
A) Cost of Equity is 15%
B) How do you find out the new WACC?
moreResolved Question: Need Accounting Help. I have been stuck on this question for a week even with text book and aids. Please help.?
Dog Up! Franks is looking at a new sausage system with an installed cost of $530,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $80,000. The sausage system will save the firm $210,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $39,000. If the tax rate is 35 percent and the discount rate is 9 percent, what is the NPV of this project?
moreResolved Question: Considering interest rates & bond yields are so low; isn't it likely that low tax rates are the problem?
30 year Treasury bonds yields are just around the annual rate of inflation; shorter term bonds are lower. Interest rates are in the basement too.
With that said and done; how could the government be crowding out business investment with the above? Isn't it more likely that marginal rates need to be higher to encourage reinvestment as a way of dodging the tax man; thus giving business the capital it needs?
moreVoting Question: Finance hellllp!! (Finding NPV with NWC and straight-line deprecitation)?
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.156 million. The fixed asset will be depreciated straight-line to zero over 3 years. At the end of the project, the asset will be sold for $478,800. Net working capital would be $684,000 at time 0 and remain at $684,000 for all years except for year 3. Net working capital for year 3 would be 0. In other words, the level of NWC is expected to be $684,000 at every point in time during the project except for in 3 years, when the level of NWC is expected to be $0. The project is estimated to generate $5,472,000 in annual sales, with annual costs of $2,188,800. The tax rate is 34 percent and the cost of capital for the project is 11 percent. The NPV for this project is
moreResolved Question: Whats unfair about the middle class paying the same tax rate on capital gains that the wealthy do?
LOL @ Mary! Yeah only wealthy people own stocks. Sheesh
moreResolved Question: Will Obama go for a tax on wealth before his reign ends?
Wolf, no we don't. Explain?
moreVoting Question: Accounting Help PLEASE- Payback Period?
I don't understand because everywhere online says that you need to have the cash inflows over a specified amount of years, but my assignment question does not have that??
This is the question:
Case X:
Initial Capital Investment: $120,000
Estimated Useful Life: 3 years
Estimated Terminal Salvage Value: 0
Estimated Annual Savings in Cash Operating Costs: $50,000
Minimum Desired Rate of Return: 10 percent
Assume straight-line amortization in all computations, and ignore income taxes.
Questions:
a) The payback period in case X is (in years)
b) The accounting rate of return based on INITIAL investment in case X is (in percent)
moreResolved Question: If the low information Democrat voters didn't ruin it-wouldn't Romney have fixed the economy by now?
He seemed to be way more skilled at getting things done and had the abilty to work with both parties, unlike Oscuso...
moreResolved Question: What is Capital's after-tax WACC?
Capital Co. has a capital structure, based on current market values, that consists of 37 percent debt, 13 percent preferred stock, and 50 percent common stock. If the returns required by investors are 8 percent, 11 percent, and 19 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
After tax WACC=%
moreVoting Question: What would be the effect on the increase on the firms FCF for the year?
Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 92 percent as high if the price is raised 10 percent. Chip’s variable cost per bottle is $10, and the total fixed cash cost for the year is $100,000. Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm’s FCF for the year? (Round answers to nearest whole dollar, e.g. 5,275.)
At $20 per bottle the Chip’s FCF is $ and at the new price Chip’s FCF is $.Can someone help me calculate the FCF or provide me a link to an online calculator ?
moreResolved Question: Capital Structure - Market Value Balance Sheet?
Im not quire sure on how to create a market value balance sheet without knowing the assets. My question refers to problem below:
Company A is considering announcing its intention to pursue a transaction whereby it will issue $3 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a 6 percent coupon rate payable annually.
Currently, Company A is an all-equity firm worth $9.5 million with 600,000 shares of common stock outstanding. After the sale of the bonds (and subsequent share repurchase), Company A will maintain the new capital structure indefinitely.
Company A is currently generating annual pre-tax earnings of $1.8 million, which is expected to remain unchanged in perpetuity. The corporate tax rate is 40%.
Questions: What is company A's market-value balance sheet before the announcement of the debt issue?
What is Company A's market-value balance sheet immediately after the announcement of the intended debt issue (but prior to the debt being issued).
What is the market-value balance sheet after the restructuring?
Am I confusing the Balance Sheet numbers with income statement numbers?
Thanks for your help
moreResolved Question: Investing in stocks and Taxes?
So starting off, I am 19 and i set up an individual brokerage account at Charles Schwab.
I'm going to be putting about $2,400 into this account and I plan on buying and selling multiple stocks within a month at a time.
My question is, if i make capital gains using the stock market within the U.S. (NASDAQ), How do I go about estimating how much I owe in TAXES?
Do i have to physically set money aside a % from all of my profits in order to make sure that I have enough money to pay taxes at the end of the year? OR will Charles Schwab automatically withhold the right amount of taxes from all profits that I make in my portfolio?
Also, what percentage of profits will needed for taxes?
Useful info:
My parents claim me as a dependent
I am a full time student
I have a part time job working about 10 hours a week
moreResolved Question: Investing in stocks and Taxes?
So starting off, I am 19 and i set up an individual brokerage account at Charles Schwab.
I'm going to be putting about $2,400 into this account and I plan on buying and selling multiple stocks within a month at a time.
My question is, if i make capital gains using the stock market within the U.S. (NASDAQ), How do I go about estimating how much I owe in TAXES?
Do i have to physically set money aside a % from all of my profits in order to make sure that I have enough money to pay taxes at the end of the year? OR will Charles Schwab automatically withhold the right amount of taxes from all profits that I make in my portfolio?
Also, what percentage of profits will needed for taxes?
Useful info:
My parents claim me as a dependent
I am a full time student
I have a part time job working about 10 hours a week
moreResolved Question: just need help on those question? thank you?
5. ABC Ltd. just paid a dividend of $2.15 per ordinary share. The dividends of
ABC are expected to grow at about 4 percent per year indefinitely. If the risk-free rate is 5 percent and investors' risk premium is 7.5 percent, estimate the value of ABC shares 3 years from now.
a. $71.71
b. $28.47
c. $37.23
d. $29.59
6 You are the financial advisor for Abercrombee Partners. The partners are considering a replacement project for an old overhead crane. The old crane is 10 years old and originally cost $60 000. It is being depreciated by $2 000 per year, to continue for the next 20 years. The new crane would cost $180 000 and would require an additional $10 000 in installation charges. It would be depreciated straight-line over the next 20 years. The new crane would lower maintenance costs by $21 650 per year for the next 20 years, but would result in additional labour costs of $2 000 per year. The old crane can be sold now for $20 000. The new crane is expected to be worth nothing at the end of 20 years. If the marginal tax rate is 35 percent. What is the amount of the initial outlay used in the capital budgeting decision?
a. $180 000
b. $190 000
c. $217 000
d. $163 000and can u guys show me how did you get the answer please
moreVoting Question: Finance word problem!?
Klaatu Co. has recently completed a $300,000, two-year marketing study. Based on the results. Klaatu has estimated that 10,000 of its new RUR-class robots could be sold annually over the next eight years at a price of $10,115 each. Variable costs per robot are $7,900; fixed costs total $11.7 million per year. Starts up costs include $41 million to build production facilities, and 9 million in net working capital. The $41 million facility is made up of a building valued at 6 million that will belong to CCA class 3 (rate is 5%) and $35 million of manufacturing equipment (belonging to CCA class 8 with rate of 20%). At the end of the project`s life, the facilities will be sold for an estimated $10.1 million, assuming the building`s value will be $4 million and net working capital will be recovered .When this project is over, there will still be other assets in the CCA class. Klaatu pays taxes at a 37% and uses a 15.5 percent discount rate on projects such as this one. Should Klaatu produce the RUR-class robots?
moreResolved Question: does anybody know how much I would have to invest in a cash isa or saving account to make £250 per week?
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