User Account

All Pages

What is the pre-tax amount of the cash flow in year

Assignment Help Accounting Basics
Reference no: EM133111328

Question - Kempf Corporation faces a marginal tax rate of 35 percent. One project that is currently under evaluation has a cash flow in the fourth year of its life that has a present value of $10,000 (after-tax). Kempf Corporation assumes that all cash flows occur at the end of the year and the company uses 11 percent as its discount rate. What is the pre-tax amount of the cash flow in year 4?

a. $8,868

b. $9,868

c. $15,181

d. $23,356

Reference no: EM133111328

Questions Cloud

Individuals face with prescreening services : Many could have had a better diagnosis if caught earlier. What are barriers individuals face with prescreening services?
What is the variance of returns for investment : C). Your investment in A Limited earned the following returns for the years 1996 to 1999: 30%, 40%, 15% and 7%. What is the variance of returns for this investm
Buying shares in a mutual fund : 1. Banks earn profits by selling securities with attractive combinations of liquidity, risk, and return, and using the proceeds to buy assets with a different s
Mutual fund managers at screening companies : Provide 3 examples on why private equity fund managers may have an advantage over mutual fund managers at screening companies.
What is the pre-tax amount of the cash flow in year : One project that is currently under evaluation has a cash flow in the fourth year of its life that has a present value of $10,000. What is the pre-tax amount
Explain how the carried interest is calculated : Explain how the carried interest is calculated for a typical private equity fund.
Relevance of reliance industries : 2. Suppose the dividend pay out resulted in the company requiring external funds to meet the proposed operation, would it have resulted in a higher cost of capi
Annualized rate of return on investment : Three years ago you purchase 700 shares of a stock for $22 a share today you saw those shares for $25 a share what was your annualized rate of return on this in
What is the proportion x : You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The Treasury-bill rate is 7%.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd