Compute the after tax cost of the expense

Assignment Help Accounting Basics
Reference no: EM13525082

Firm A had a 15% marginal tax rate, and firm Z has a 28% marginal tax rate. Firm A owns a controlling interest in firm Z. The owners of Firm A decide to incur a $9500 deductible expense that will benefit both firms.

Compute the after tax cost of the expense assuming that Firm A incurs the expense?

Reference no: EM13525082

Questions Cloud

Voluntary settlements for a firm with outstanding debt : Voluntary settlements For a firm with outstanding debt of $125,000, classify each of the following voluntary settlements as an extension, a composition, or a combination of the two.
Gender differences in ethical perspectives : Researchers have found that there are gender differences in ethical perspectives. Give an example of a gender difference that you have experienced that relates to a moral or ethical decision or “virtuous” behavior. How do you think men and women are ..
Explain carbon is added to a liver homogenate : Excess dietary fat can be converted to cholesterol in the liver. When palmitate labeled with 14C at every odd numbered carbon is added to a liver homogenate, where does this label appear in mevalonate
Find how long does it take her to cross the river : Sheena can row a boat at 3.10 mi/h in still water. She needs to cross a river that is 1.11 mi wide with a current flowing at 1.77 mi/h. Not having her calculator ready, How long does it take her to cross the river
Compute the after tax cost of the expense : Compute the after tax cost of the expense assuming that Firm A incurs the expens
Explain sp2 hybridized orbital for a carbon atom : Using the orbital diagram outline steps used to describe the formation of a set of sp2 hybridized orbital for a carbon atom
Growth rate is expected to continue into the foreseeable : Growth rate is expected to continue into the foreseeable future.
Define term virtue ethics and identify three most virtues : Define the term virtue ethics and identify the three most important virtues that you live by. Why is it important for you and others to live by these virtues? Give an example of someone you know who lives by these same virtues and explain why you con..
Explain the maximum number of moles fit in a processor chip : Given that an atom of a semiconductor has a diameter of 2.45 , what is the maximum number of moles that fit in the channel of a processor chip that is 80.0 long, 84.2 , wide and 435 thick? Assume that the atoms stack in a simple cubic arrangement.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd