What is the after tax equity reversion

Assignment Help Financial Management
Reference no: EM132039102

Gross Selling Price: $1,000,000

Net Selling Price: $950,000

Accumulated Depreciation: $200,000

Loan Payoff: $350,000

Purchase Price: $350,000

Depreciated Value: $150,000

Capital Gain Tax Rate: 20%

Tax Rate on Capital Gains Due to Depreciation 25%

What is the ATER (After Tax Equity Reversion)?

Reference no: EM132039102

Questions Cloud

Universities foster environment of honesty and integrity : Manufactures software and accessories that helps universities foster an environment of honesty and integrity.
What is the maximum amount of capital spending : What is the maximum amount of capital spending possible without selling new equity?
Why secondary markets are so important to businesses : Explain the difference between primary and secondary markets and why secondary markets are so important to businesses that need to raise capital?
What is their eat and earnings after tax : Complete a proforma income statement with COGS and operating expenses increasing at the 6%, What is their EAT, earnings after tax?
What is the after tax equity reversion : What is the ATER (After Tax Equity Reversion)?
What is the company net income : What is the company's net income? What is the company's ROE?
Abreast of events affecting country risk : Assume you are the economist for a MNC and your job is to keep the CFO and CEO abreast of events affecting country risk.
Purchase of new pleasure boat for tourist business : What is the payback period on Popeye's purchase of a new pleasure boat for his tourist business?
Shareholders are satisfied with the company management : The company has shown a profit every year for the past 18 years, and the shareholders are satisfied with the company’s management

Reviews

Write a Review

Financial Management Questions & Answers

  Relationships apply to par value bond

Which of the following relationships apply to a par value bond?

  Difference in two bank account balances after two years

what will be the difference in the two bank account balances after two years?

  What is the bond yield to maturity

What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

  Mutual funds must publicly disclose all of the except

Mutual funds must publicly disclose all of the following except. Which of the following is not an advantage of an ETF?

  What are the tax consequences to taxpayer in each year

What are the tax consequences to Taxpayer in each year? Would your result in (a) above, be altered if taxpayer is an accrual method taxpayer?

  At what point should lipscomb recorder for unexpected order

At what point should Lipscomb recorder (how many cases on hand) if he wants to also compensate for unexpected order delays?

  What is expected return on portfolio

Nemhain owns a portfolio that is invested 23.09 percent in stock A, 44.89 percent in stock B, and the remainder in stock C. The expected returns on these stocks are 10.7 percent, 13.65 percent, and 11.58 percent, respectively. What is the expected re..

  Prepaid expenses totaling-liabilities

At year’s end your company has cash of $10,500, receivables of $49,900, inventory of $40,200, and prepaid expenses totaling $5,900, Liabilities of $56,500 must be paid next year. A year ago receivables stood at $68,100, and sales for the current year..

  What is the intrinsic value of this stock

Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $61, and ZZZ-Best consistently pays an annual dividend of $18. Analysts estimate that the stock has a beta of 0.84. The current risk-f..

  New index level be if all stocks on the DJIA increased

Assume that on a particular day, the DJIA opened at 11,960.09. The divisor at that time was .132550914. What would the new index level be if all stocks on the DJIA increased by $1.00 per share on the next day?

  What share price would you expect after the? announcement

What share price would you expect after the? announcement? The equity cost of capital is ?%.

  What will be the net cash flow for year one of this project

Your company has spent $1,000,000 on research to develop a new computer game. The firm is planning to spend $500,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total ..

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