The companys tax rate is 30 and its discount rate is 10

Assignment Help Finance Basics
Reference no: EM13567194

A company anticipates a depreciation deduction of $10,000 in year 2 of a project. The company"s tax rate is 30% and its discount rate is 10%. The present value of the depreciation tax shield resulting from this deduction is closest to:

A) $3,000

B) $2,479

C) $5,785

D) $7,000

Reference no: EM13567194

Questions Cloud

Sales salaries 115000 federal income tax withheld 32000 : the summary of the payroll for the monthly pay period ending july 15 indicated the following sales salaries 115000
If 40 of the funds are invested in stock a and the rest in : stock a has an expected return of 10 per year and stock b has an expected return of 20. if 40 of the funds are invested
Suppose you invest equal amounts in a portfolio with an : suppose you invest equal amounts in a portfolio with an expected return of 16 and a standard deviation of returns of 20
Compute the effect on income before income taxes during the : on january 1 2013 nelson company leases certain property to queens company at an annual rental of 60000 payable in
The companys tax rate is 30 and its discount rate is 10 : a company anticipates a depreciation deduction of 10000 in year 2 of a project. the companys tax rate is 30 and its
Find the present value using the present value formula and : find the present value using the present value formula and a calculator.achieve 225500 at 8.45 compounded continuously
Identify the factors that seem to have favored one account : an essay of around 1500 words.referencingthe essay should include a list of references print and electronic at the end
Project xyz requires an investment in equipment of 600000 : project xyz requires an investment in equipment of 600000 to replace existing equipment. the existing equipment will
Recognition of transactions treated as gifts in the current : recognition of transactions treated as gifts. in the current year emily a widow engages in the followings transactions.

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the advantages and disadvantages of net present

what are the advantages and disadvantages of net present value internal rate of return and payback period. are they

  What required return must investors be demanding

If the stock price is $33.97, what required return must investors be demanding on Storico stock? (Hint: Set up the valuation formula with all the relevant cash flows, and use trial and error to find the unknown rate of return.)

  Briefly describe a health care organization of your choice

Briefly describe a health care organization of your choice and the pros and cons of the alternatives avaliable for short term financing. provide specific examples to support your rationale.

  What is the wacc for the company

Preferred Stock and WACC The Saunders Investment Bank has the following financing outstanding. What is the WACC for the company?

  Determination of expected rate of return

Williams and Westrich stock is currently selling for $15.25 each share, and the dividend is expected to continue at 92¢ per share. Management expects the stock to grow at 8 percent.

  What was its pe ratio

Sony's stock price at the end of last year was $23.50 and its earnings per share for the year were $1.30. What was its PE ratio?

  A portfolio has 4600 invested in stock x what is the

a portfolio has4600 invested in stock x and5200 invested in stock z.what is the expected return on the portfolio if the

  Determining foreign corporate tax rate

Suppose England raised its corporate tax rate by 1 percentage point from 40% to 41%. How would this increase affect the economics of a U.S.-U.K. foreign expansion project?

  What is the cost of common equity capital for the firm

If the current price of Two-Stage's common stock is $17.61, what is the cost of common equity capital for the firm?

  Provide reasons for doing market research

Determine the primary reasons for doing market research? How are primary and secondary information used in subsequent marketing including the use of questionnaires, observations, experiments, and panels?

  If the appropriate interest rate is 518 percent what is

trigen corp. management will invest cash flows of 683314 220713 686864 818400 1239644 and 1617848 in research and

  A company facing a tax rate of 35 has an outstanding issue

a company facing a tax rate of 35 has an outstanding issue of 800000 shares of preferred stock with a 68 par value. the

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