If the companys marginal tax rate is 40 what will be the

Assignment Help Finance Basics
Reference no: EM13479269

Suppose you sell a fixed asset for $90,000 when its book value is $95,000. If your company's marginal tax rate is 40%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

i) $95,000
ii) $92,000
iii) $3,000
iv) $5,000

Reference no: EM13479269

Questions Cloud

What are the big take-aways here is this movie at all an : movie review gung howhat are the big take-aways here? is this movie at all an integration of what we have been speaking
Sydney saved 10000 during her first year of work after : sydney saved 10000 during her first year of work after college and plans to invest it for her retirement in 40 years.
Description in this drama analysis you will : description in this drama analysis you will comparecontrast one of the plays we read in class with one of the poems or
Assuming a 40 tax rate on all taxable income what is the : central city construction ccc needs 1 million of assets to get started and it expects to have a basis earning power
If the companys marginal tax rate is 40 what will be the : suppose you sell a fixed asset for 90000 when its book value is 95000. if your companys marginal tax rate is 40 what
Rview the other learning styles visual aural readwrite : detailscomplete the vark questionnaire how do i learn best?httpwww.vark-learn.comenglishpage.asp?pquestionnaire1 click
Suppose that the exchange rate is 085 dollars per swiss : suppose that the exchange rate is 0.85 dollars per swiss franc. if the franc appreciated 10 against the dollar how
My venture is a photo booth rental develop three tables of : my venture is a photo booth rental.1. develop three tables of financial data in which you address the following key
What is your companys weighted average flotation cost : suppose your company needs 14 million to build a new assembly line. your target debt equity ratio is 0.50. the

Reviews

Write a Review

Finance Basics Questions & Answers

  Use algebraic and graphical approaches

Mop and Broom Manufacturing is estimating whether to produce a new type of mop. The corporation is planning the operations requirements for the mop as well as the market potential.

  What is the profitability index and should the firm go

A company is planning an expansion. The initial investment is $480,000 and anticipates cash inflows as listed below. The cost of capital is 12.2%. What is the profitability index and should the firm go ahead with the project?

  Calculating the effective interest rate

William Miklo is opening a new business and the bank will not give him a loan without a 20% compensating balance account.

  Given the information in the following table compute the

given the information in the following table compute the days in accounts receivable aging schedule and accounts

  Determine the weights for the tangent portfolio optimal

part 1weekly closing priceweekly returndatecba.axpwrdjs.axasx 200cba.axpwrdjs.axasx

  Prepare all necessary journal entries

Chicago Corporation purchases 1,000 shares of the preferred stock of Denver Corp. for $40 per share. In addition, Chicago pays another 1,000 in commissions.

  Production planning department of graystar prefabricated

production planning department of graystar prefabricated homes company has to decide which types of homes to produce

  Budget proposal template and the budget proposal workbook

The Budget Proposal project is intended to be a comprehensive evaluation of the key objectives covered throughout this course. It will challenge you to apply your knowledge of the budgeting process

  What is the standard deviation of this portfolio

Treasury bills have an expected return of 3%, the expected market return as measured by the S &P is 11% and the S&P's standard deviation is 21%.

  What is the modified duration

What is the Macaulay duration of a 8.6 percent coupon bond with twelve years to maturity and a current price of $953.90? What is the modified duration?

  Your employer barnaby well company is considering the

your employer barnaby well company is considering the acquisition of a new drill truck and your boss has asked you to

  What is meant by default risk in bonds

What is meant by "default risk" in bonds, and how do investors respond to it?

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