Introduction to Corporate Finance, Finance, Other Engineering

Calculatethe tax disadvantage to organizing a U.S. business today, after passage of the Jobs and growth Tax relief reconciliation act of 2003, as a corporation versus a partnership under the following conditions. Assume that all earnings will be paid out as cash dividends. Operating income will be $500,000 per year under either organizational form; the effective corporate profits tax rate is 35 percent (T = 0.35); the average personal tax rate for the partners of the business is also 35 percent (T = 0.35); and the capital gains tax rate on dividend income is 15 percent (T = 0.15). Then, recalculate the tax disadvantage using the same income but with the maximum tax rates that existed before 2003. These rates were 35 percent (T=0.35) on corporate profits and 38.6 percent (T=0.386) on personal investment income.
Posted Date: 2/1/2012 10:36:14 AM | Location : United States

Related Discussions:- Introduction to Corporate Finance, Finance, Assignment Help, Ask Question on Introduction to Corporate Finance, Finance, Get Answer, Expert's Help, Introduction to Corporate Finance, Finance Discussions

Write discussion on Introduction to Corporate Finance, Finance
Your posts are moderated
Related Questions
bit reversed process 10 point dft

i need 3 areasof application of lunear programming

Engine fires: There are two main types of engine fire that can occur when running gas turbine engines and they are dealt with in different ways. 1. Fire in the engine nacel

Rajender Kumar was a production worker at competent Motors Limited (CML) which made components and accessories for the automotive industry. He had worked at CML for almost seven ye

Beta coefficients and standard deviation may be used as indicators of risk

offer an explanation for why cracking might have occurred. Give at least three suggestion on how to prevent this type of corrosion. You may supple with appropriate figures

a part of machine has a reciprocating motion which is simple harmonic making 200 complete oscillations in a minute.the part weight 45 N.determine the accelerating force upon it

hi I''m doing research in tool life of solid carbide endmills and I was looking at your formulas. I was wondering if tell me or where I can find the data required for these formu

State Vectors  In engineering - particularly control engineering - most systems are represented by a state vector.  - The state vector contains all of the relevant qua

Aircraft fuel gauges Fuel gauge senders are capacitor transducers that consist of concentric tubular electrodes from top to bottom of the tank. They are distributed at various