Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 29% and cost of 14.36% Preferred stock: 19% and cost of 11.33% Debt: 52% and cost of 9.7% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 35%? b. 25%? c. 20%? d. 10%? e. 0%? a. What is the adjusted WACC for Lewis if the tax rate is 35%? % (Round to two decimal places.)
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- = Adjusted WACC Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 35% and cost of 14.00% Preferred stock: 15% and cost of 11.00% Debt: 50% and cost of 10.0% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40%? b. 30%? c. 20%? d. 10%? e. 0%?Please help me answer it as fast as you can! suppose company has $13 in taxable income after consideration $6 of tax privileges (so, companyis tax sheild = $6). If alternative minimum tax (AMT) is 20%, calculate the minimum tax amount that company should pay.Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
- (Corporate income tax) Meyer Inc. has taxable income (earnings before taxes) of $300,000. Calculate Meyer's federal income tax liability using the tax table shown in the popup window: What are the firm's average and marginal tax rates? The firm's tax liability for the year is $. (Round to the nearest dollar.) Etext pages 2 W S mmand X Get more help # 3 80 F3 E D C $ 4 ODD 988 R F % 5 V FS T G 6 B MacBook Air F6 Y H & 7 F7 U N * 8 J PIL 1 M ( 9 K MOSISO DD F9 O ; FW1 { + [ option ? "1 1 Question Viewer 41 FYZ } delete return(a). An investor who is in the 28 % tax bracket is considering choosing between an investment earning a 6 % taxable return and an investment earning a 4 % tax-free yield. Advise the investor which investment he should choose and give reasons. (b) If you buy 100 common shares of ZANACO Plc, to what are you entitled? (c) What is the most money you could make over the next year? (d) If you pay K95 per share, what is the most money you could lose over the year? (e) Stock Initial Price Final Price Shares (millions) ABC K25 K30 20 XYZ K100 K90 1 (1) Determine the portfolio initial…If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a. 34% b. 50% c. 44% d. 37% 2. Holding all other variables constant, which of the following would increase return on equity? An increase in _____________. a. the tax rate b. the equity ratio (equity/total assets) c. total assets d. total asset turnover
- ( a ). An investor who is in the 28 % tax bracket is considering choosing between an investment earning a 6 % taxable return and an investment earning a 4 % tax-free yield. Advise the investor which investment he should choose and give reasons. (b). If you buy 100 common shares of ZANACO Plc, to what are you entitled? What is the most money you could make over the next year? If you pay K95 per share, what is the most money you could lose over the year?7. Consider the following income tax rate structure. Rate Income bracket Up to $50,000 $50,001 to $150,000 + 20% $150,001 and above Suppose Ms. James's annual income is $140,000 as a director in the Education Research Inc. She was offered a job as a managing director in the Advanced Research & Co., which would provide annual income of $165,000. What would be additional tax liability if she accepts the offer? A) $3,000 B) $4,000 C) $5,000 D) $3,500 5% + 10%a. Fill in the following table assuming MACRS depreciation rates (10 points) Year 0 1 2 3 4 5 6 Pretax income MACRS Taxable Depreciation income Tax owed After tax income Inflation adjustment factor Real after tax income b. If MARR = 18%, should you purchase this system based on your real after-tax income? Why or why not? (5 points)
- Robert, the owner of a local poster shop, comes to you for help. "We've only been breaking even the past two years, and I'm getting very frustrated! I don't know what to do because I feel like I've already tried to improve our processes as much as possible, but we still haven't been able to generate a profit. Do you have any suggestions as to how we can turn things around? I just don't think we can even consider moving forward with this business unless we can earn $9,000 in operating income next year. Even then, we'll have to think long and hard about what the future holds." Robert shares the following information with you, as you ponder different scenarios to help your friend. Selling price Cost for paper, per unit Cost for printing, per unit Cost for film, per unit Staff salaries Other operating costs 1. 2. 3. $6.80 4. 0.75 After thinking about it for a while, you suggest the following possibilities to help him turn things around. 0.90 0.50 47,000 14,380 Lower the selling price by…Instructions Consider an organization that has Earnings Before Tax of $100,000. Assume amortization expense for this organization is zero, and it is in the 30% tax bracket. Answer the following questions: 1. What is the cash flow? 2. Now assume amortization is $50,000. Does the cash flow change? If so, why and by how much? Requirements Your submission should include a single Microsoft Word document or pdf containing your response to the discussion question. SThe personal tax on interest payments is 33%.The personal tax rate on equity capital gain is 15%.The corporate tax is 35%.Given all these tax rates and all otehr factors are kept constant,will investors have a preference to debt or equity? A.Cannot determine from the information provided B.Debt is preferred to equity C.Equity is preferred to debt D.M-M proposition I holds and the investors are indifferent between debt and equity