Difference between total corporate plus personal taxes

Assignment Help Finance Basics
Reference no: EM132689509

Suppose that Congress sets the top personal tax rate on interest and dividends at 42% and the top rate on realized capital gains at 15%. The corporate tax rate stays at 24%. Assume capital gains are half of equity income.

a. Compute the difference between the total corporate plus personal taxes paid on debt and the total taxes on equity income if all capital gains are realized immediately. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

b. Compute the difference between the total corporate plus personal taxes paid on debt and the total taxes on equity income if all capital gains are deferred forever. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Reference no: EM132689509

Questions Cloud

Prepare a report for the management of bath products ltd : Prepare a report for the management of Bath Products Ltd, commenting on the analysis in requirement (1) and providing suggestion for improvement.
What is the gain or loss from disposal of plant : What is the gain/loss from disposal of property, plant and equipment in fiscal year 2020 if the sale price of the disposed assets is $2 (millions)?
Affected budget public policy formation : Write a word paper in which you describe the forces of federalism and how it has affected budget public policy formation.
Write episode of care : Examples of an EOC could be considered to be one occasion of assisting someone with their personal hygiene (in acute care); or changing a wound dressing
Difference between total corporate plus personal taxes : Compute the difference between the total corporate plus personal taxes paid on debt and the total taxes on equity income if all capital gains are realized immed
Regard to raw intelligence exploitation : Do you agree with the decisions made by the group as a whole with regard to the raw intelligence exploitation? Why or why not?
What is a low-coupon bond : What is a low-coupon bond? Does having a low coupon bond make the dollar price more volatile? Explain.
Policymakers and their enviroment : Under what conditions, if any, is the individual level of analysis more useful than the unit-level or system-level? Why?
Find interest rate level and bond price : What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the price

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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