Effect on cash flows of sale

Assignment Help Finance Basics
Reference no: EM131975614

Suppose you sell a fixed asset for $127,000 when it's book value is $159,000. If your company's marginal tax rate is 33%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Reference no: EM131975614

Questions Cloud

Rates even though borrowing demand has been high : Why has the U.S. not seen increases in interest rates even though borrowing demand has been high?
Estimate the terminal value : WACC is 8%. Using a 5-year DCF and a growing perpetuity to estimate the terminal value, what is the firm value of DECK?
What will her investment in alpha be worth if the company : What will her investment in Alpha be worth if the company declares a 4-for-3 stock split?
Earnings per share after the stock repurchase : Next week, the firm will be repurchasing $36,000 worth of stock. Ignore taxes. What will be in the earnings per share after the stock repurchase?
Effect on cash flows of sale : If your company's marginal tax rate is 33%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
What is b24-co cost of equity : B24&Co stock has a beta of 1.60, the current risk-free rate is 3.10 percent, and the expected return on the market is 10.60 percent.
Determining the bondholders and stockholders : Assume a risky firm has both bondholders and stockholders. If the firm obtains a government loan guarantee on its existing debt, who will gain from the guarante
Calculate estimated gross profit that would be recognized : Using the percentage of completion method, Calculate the estimated gross profit that would be recognized during each year of the construction.
Compute the present value of the tax shield : An 14 percent discount rate is appropriate for this asset, and the company's tax rate is 40 percent. Compute the present value of the tax shield resulting

Reviews

Write a Review

Finance Basics Questions & Answers

  Differnce bewteen heavy lift surcharges and long lift

difference betweeen heavy lift surcharges and long lift surcharges. define heavy lift surcharge and long lift

  Suppose congress changed the tax laws so that berndts

the berndt corporation expects to have sales of 12 million. costs other than depreciation are expected to be 75 of

  Compare the hotel performance in january and february

The General Manager of Nova Scotia's Trenton Hotel is concerned that in January and February her hotel is running at a loss. She has decided to hold a senior.

  Define and give an example of reshoring

Define and give an example of reshoring. What are three reasons why reshoring is becoming more popular?

  Compare and contrast the tax rules and treatment

Imagine that you are a partner in a LLC. Justify why you elected to become a partnership as opposed to a corporation. Indicate tax rules that influenced.

  Find the npv of each machine

Assuming that both projects can be repeated, which machine should be selected to replace the old equipment? Why?

  Learning resources and personal or professional experience

Using examples from your Learning Resources and personal or professional experience, explain how health care is a market. In your answer, please be sure to address the following:

  Calculate the data point

a)The z-score that corresponds to a particular data point (x) is 1.42. Calculate the data point. Give your answer to 2 decimal places.

  What is the return on equity for each firm if the interest

vanderheiden press inc. and the herrenhouse publishing company had the following balance sheets as of december 31 2002

  Affect the value of the mexican peso

Impact of Inflation: -  How could this affect the value of the Mexican peso according to purchasing power parity (PPP) theory?

  Calculate the rate of return on equity

Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.

  You are a mid-level manager in a health care organization

you are a mid-level manager in a health care organization and you have been asked to prepare a report with appropriate

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