What is the cash flow after taxes

Assignment Help Financial Management
Reference no: EM131905308

The following information applies to Questions 1 and 2:

Net Operating Income: $14,000

Depreciation: $4,000

Debt Service: $13,000 (interest is $12,000 of this amount)

Vacancy and Credit Loss: $7,000

Interest Expense: $12,000

Operating Expenses: $3,000

Tax rate: 28%

1. Assuming that the investor can use any tax shelter benefits, what are the taxes due or the taxes saved ($$$) for these annual figures?

2. Assuming that the investor can use any tax shelter benefits, what is the cash flow after taxes?

Reference no: EM131905308

Questions Cloud

Not true with respect to market-makers : Which of the following is NOT TRUE with respect to market-makers? Which one of the following statements about option compensation is NOT TRUE?
Capital structure weights on market and book value basis : What are the company’s capital structure weights on a book value basis? What are the company’s capital structure weights on a market value basis?
What is the company target debt–equity ratio : The tax rate is 40 percent. What is the company’s target debt–equity ratio?
What is the modified duration of the t-bonds : What is the modified duration of the T-bonds if the current level of interest rates is 8 percent?
What is the cash flow after taxes : Assuming that the investor can use any tax shelter benefits, what is the cash flow after taxes?
Cost analysis revealed the information about drg : How would you apply your core competencies if your cost analysis revealed the following information about DRG 190?
What is the modified net present value for expansion project : What is the Modified Net Present Value ( MNPV ) for the expansion project?
Calculate return on invested capital for each firm : Calculate the return on invested capital (ROIC) for each firm. Calculate the rate of return on equity (ROE) for each firm.
How much is the bond accrued interest : How much is the bond’s accrued interest? How much is the bond’s dirty price?

Reviews

Write a Review

Financial Management Questions & Answers

  Share dividend for the holders of record

At a firm's quarterly dividend meeting held April 9, the directors declared a $0.50 per share dividend for the holders of record on Monday, May 1. The firm's stock will sell "ex-dividend" on: (a) April 9th, (b) May 5th, (c) April 25 or (d) April ..

  What is the value or importance of indexing

Defend the case for indexing Discuss active investors. What is the value or importance of indexing?

  Small business owner visits his bank to ask for loan

A small business owner visits his bank to ask for a loan. how much would it be willing to lend the business owner?

  How much will their payment per month be

Ralph and Anne presently have $100,000 in their savings account if they wish to have $400,000 in 10 years while earning 10% interest, how much will their payment per month be?

  Causes market capitalization of firm to increase or decrease

What is the major factor that causes the market capitalization of a firm to increase or decrease?

  The general binomial method for option pricing

The general binomial method for option pricing has, at its root, the valuation of a one-period option on a stock with only two possible future values.

  What is the yield that trevor would earn by selling the bond

Realized yield-what is the yield that Trevor would earn by selling the bonds today?

  What is the forward contract worth at the time

What is the forward contract worth at this time? Explain why this is the correct value of the forward contract in six months even though the contract does not have a liquid mar- ket like a futures contract.

  Explain what residual policy implies

One position expressed in the financial literature is that firms set their dividends as a residual after using income to support new investments. A. Explain what a residual policy implies (assuming that all distributions are in the form of dividends)..

  Estimate chf cash flows

A project in Hong Kong costs Hong Kong dollar (HKD) 200,000 and produces cash flows of HKD 75,000 per year for five years. -estimate CHF cash flows, and calculate the project NPV in CHF.

  Calculate the risk-free rate of return

What do Fama and French use to calculate the risk-free rate of return?

  What is the operating net cash flow in year one

The president of Real Time Ltd has asked you to evaluate the proposed acquisition of a new computer system. The system's price is $39,000, and will be depreciated straight-line over a three year life. Purchase of the system would require an increase ..

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