Impact of income taxes, Ben Rakusin is contemplating an

Impact of income taxes

Assignment Help Financial Management

Reference no: EM13728342

Impact of Income Taxes

Ben Rakusin is contemplating an expansion of his business. He believes he can increase revenues by $9,000 each month if he leases 1,500 additional square feet of showroom space. Rakusin has found the perfect showroom. It leases for $4,000 per month. Ben's tax rate is 30 percent.

Required: What estimated after-tax income will Rakusin earn from his expansion?

Reference no: EM13728342

Questions Cloud

Why is ford trying to increase sustainability of its cars : Why is Ford trying to increase the sustainability of its cars, Why is Ford looking toward aluminum as an alternative material for its vehicles

Compelling mythological image : Who was Prometheus and why is he a standard for the romantic hero? Why is Prometheus such a compelling mythological image?

Describe specifically how each similarity applies africans : Be sure to distinguish each similarity from the other two and to describe specifically how each similarity applies both to views that Europeans had of Africans and to views that Europeans had of Native Americans.explain how it influenced actions t..

What is the percent return on equity : In the year 2007, the average firm in the S&P 500 Index had a total market value of fives times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percen..

Impact of income taxes : Ben Rakusin is contemplating an expansion of his business. He believes he can increase revenues by $9,000 each month if he leases 1,500 additional square feet of showroom space. Rakusin has found the perfect showroom. It leases for $4,000 per month. ..

What is the annual percentage rate on your account : You are paying an effective annual rate of 14.50 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account?

What rate of return are you earning on this policy : You just paid $350,000 for a policy that will pay you and your heirs $12,200 a year forever. What rate of return are you earning on this policy?

George jefferson established a trust fund : George Jefferson established a trust fund that provides $171,500 in scholarships each year for worthy students. The trust fund earns a 2 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest i..

What semi-annually sinking fund payment : What semi-annually sinking fund payment would be required to yield 46000 seven years from now? The annual interest rate is 4% compounded semi-annually? and the table is at 7 periods 0.1266096 and at 14 periods it is 0.0546690

User Account

All Pages