Introduction to Corporate Finance, Finance, Other Engineering

Introduction to Corporate Finance, Finance, Other Engineering

Assignment Help:

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.

Related Discussions:- Introduction to Corporate Finance, Finance

Operations research, degeneracy in transportation problem

degeneracy in transportation problem

Capital structure, how to identify the capital structure of the company?

how to identify the capital structure of the company?

What is ebidta?, What Is EBIDTA? EBITDA appears for income before atten...

What Is EBIDTA? EBITDA appears for income before attention, taxation, devaluation, and amount. EBITDA came into large use among personal investment companies, seeking to determ

Interest rate calculations, Interest Rate Calculations In considering ...

Interest Rate Calculations In considering the time value of money, it is convenient to represent mathematically the relationship between the current or present value of a sing

HELP!!, HELP IN ELECTRONIC...I AM DOING ELECTRONIC ENG. ... GUIDE ME THE WA...

HELP IN ELECTRONIC...I AM DOING ELECTRONIC ENG. ... GUIDE ME THE WAY...

Switching, name the switching schemes used in a digital exchange. how call ...

name the switching schemes used in a digital exchange. how call processing takes place?

Compressibility fluid -aircraft maintenance, Compressibility Fluid: Com...

Compressibility Fluid: Compressible fluid flow refers to the air flow through a gas turbine engine and, because the air is compressible, flow at subsonic speeds causes a change

Organic, What happened when melonic acid heated

What happened when melonic acid heated

Interfacing concept, Basic interfacing concept

Basic interfacing concept

Thin-skinned structures , Thin-skinned Structures The SCB geometry can...

Thin-skinned Structures The SCB geometry can't be used because the skins are too flexible. Instead, a centre-notch flexure (CNF) test can be used. A hole is drilled abo

Write Your Message!

Name

Email id

Message

Verfication Code

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

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