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

Basic principles - propeller, BASIC PRINCIPLES : The purpose of a prope...

BASIC PRINCIPLES : The purpose of a propeller is to convert the power developed by the engine into a useful force called 'Thrust'. This force must be equal to and opposite in

Rayleigh scattering, how rayleigh scattering occurs in optical fiber cable

how rayleigh scattering occurs in optical fiber cable

Physical chemistry, can you answer some problem from physical chemistry wit...

can you answer some problem from physical chemistry with a detailed approach why and how one should choose the steps in solving them.These are just random question that I have no c

Clipping circuit, Disadvantage of shunt diode clipper

Disadvantage of shunt diode clipper

Use of a microprocessor and a microcontroller, Question: a) Differenti...

Question: a) Differentiate between the prime use of a microprocessor and a microcontroller. b) Describe why the design approach of the microcontroller must mirror that of t

The research about thermoset polymer products, Chemical Engineering The re...

Chemical Engineering The research about thermoset polymer products. For example Polyimide Film Thermosetting and Pressure-Sensitive Adhesive Tape.

Fourier’s law of heat conduction, Fourier’s law of heat conduction For one ...

Fourier’s law of heat conduction For one dimension; q(x) = - k dT/dx (2.1) wher

Derivative Securities, Let C(K) denote a European vanilla Call option with ...

Let C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-

Aircraft fuel gauges, Aircraft fuel gauges Fuel gauge senders are capac...

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

Civil construction, what a problem when we do a construction project

what a problem when we do a construction project

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