Estimate the sufficient taxable income, Corporate Finance

L has business assets worth $8 million and NOL carryovers of $1 million expiring in 14 years and of $2 million expiring in 15 years. 100% of L's stock is worth $10 million. The long-term tax exempt rate is 8 percent. The current third party market interest rate is 10 percent. Commercial bank mortgage rates are 12%.

(a) What will the § 382 limitation be if an ownership change occurs with respect to L's stock? Assuming sufficient taxable income, how long will it take to fully utilize the NOLs?

(b) Same questions and facts as (a) above, except L has minimal assets and 100% of its stock is worth $1 million.

 

Posted Date: 3/20/2013 6:02:44 AM | Location : United States







Related Discussions:- Estimate the sufficient taxable income, Assignment Help, Ask Question on Estimate the sufficient taxable income, Get Answer, Expert's Help, Estimate the sufficient taxable income Discussions

Write discussion on Estimate the sufficient taxable income
Your posts are moderated
Related Questions

For a large set of SKUs and in two successive selling seasons, we have compared the accuracy of three quantitative forecasting methods based on advance (preview) demand information

A owns all of the X stock with a basis of $200. A's three sons own all of the Y stock equally. X and Y each have E&P of $100, respectively. A sells one half of the X stock to Y

What is an agent? What are the responsibilities of an agent? Ans: An agent is someone who has the implied or actual authority to act on behalf of another.  The owners whom the

short term financial planning case study

Corporation Hallmark, located in California, was in the business of manufacturing custom-ordered greeting cards, boxes, wrapping paper, and other paper products. Its operation is v

Analyse the budget shown below, and discuss any issues raised regarding cash flow and legal requirements. Suggest at least three alternative courses of action the organisation cou

To determine Henkel''s corporate beta, unlever (and relever) the ordinary least squares (OLS) market betas for each company in the European Household and Personal Care segment. Pri

Hallo I have to prepare a case study in cooperate finance. It is a balance sheet and different adjustments. I would need your help to reflect my results. Is this possible?

Dear Sir/Madam, I have an assignment for my financial engineering class, which contains 19 different questions, and is due Monday 11 a.m. Can you please tell me if you have someon