MINI CASE a. Why is corporate finance important to all managers? Corporate finance is important to all managers because it provides managers the skills needed to identify and select the corporate strategies and individual projects that add value to their firm and forecast the funding requirements of their company and devise strategies for acquiring those funds. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages
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paid of $25‚000‚ and (4) income taxes. What are the firm’s in- come tax liability and its after-tax income? What are the company’s marginal and average tax rates on taxable income? Taxable operating income $ 365‚000 Taxable interest ($ 50‚000) Taxable dividend received$ 4‚500 15000*(1 - 0.70) Total taxable income$ 319‚500 a. The marginal rate for this company is 39% The non-taxable dividends are: $15‚000 * 0.7 = $ 10‚500 Tax Liability =$ 22‚250 + (319‚500 ± 100‚000)*0.39 = $ 107‚855After
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The following information relates to 2007: Income before income tax $240‚000 Prior period adjustment: understatement of 2005 depreciation expense (before taxes) $ 25‚000 Cumulative decrease in income from change in inventory methods (before taxes) $ 35‚000 Dividends declared (of this amount‚ $25‚000 will be paid on January 15‚ 2008) $100‚000 Effective tax rate 40% |Lee Corporation
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Gambling: A Cash Cow for Provincial Government 1. What do you think? Is it okay for government to be in the gambling business? As far as I am concerned‚ it is very vital for government to be in the gambling business. Government is the most powerful department of the country‚ so it is okay for government to be in the gambling business and there are many reasons for it: 1. . Only the government can make good use of the taxation in the gambling business. The government can use the fiscal policy
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Prepared for Tony & Anne Campbell GROUP PR OJ ECT F732 : PERSONAL FINANCI AL P LANNI NG AND ADVISING Course Instructor: Prof. Sumit Bose Submitted on 12-April-2013 RONG DAI (1192240) JI SHI (1192359) LONG CHEN (1192304) P a g e 1 | 22 Prepared for Tony & Anne Campbell Table of Contents Part 1 – Cover Letter ..................................................................................................................................... 3 Part 2 – Engagement Letter .......
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(2) dividends received of $15‚000‚ (3) dividends paid of $25‚000‚ and (4) income taxes. a) What are the firm’s income tax liability and its after-tax income? b) What are the company’s marginal and average tax rates on taxable income? For a corporation‚ 70% of dividends received are excluded from taxes; so taxable dividends are calculated with the remained 30% Company’s Tax Liability: Taxable operating income $ 365‚000 Taxable interest ($ 50‚000) Taxable dividend received
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Introduction Minerals Resource Rent Tax is a tax that will be placed on iron ore and coal projects starting July 1 2012. The introduction of MRRT will potentially have an effect on the accounting policy choices of mining companies affected by the tax. This paper will be split into two sections; a literature review and an analysis. The literature review will look at articles on the Minerals Resource Rent Tax and what it actually entails. Positive Accounting Theory in relation to bonus plans and
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prioritize and boost revenues in order to meet their obligations. In present circumstances‚ municipal financial viability is without a doubt a serious issue as local government is being put in a position to fail by more senior levels. With the property tax as their chief source of income‚ municipalities were born with the intention of providing a limited amount of property-related services. Urbanization brought with it an evolution of responsibility from property to people-oriented duties such as immigration
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sin tax reform as it sought to retain the multitiered system and increase excise tax collection from tobacco and alcohol products by only P15 billion to P20 billion in the first year of implementation. This is significantly lower than the P31.35 billion that House Bill 5727‚ already passed on third reading‚ projects to raise‚ and an even farther cry from the P60.63-billion goal originally proposed by the Department of Finance. Senator Drilon’s substitute bill features an expected excise tax collection
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Dividends + 30 million Dividends= 50 – 30 = 20 million 2-7 – Corporate tax liability The Talley Corporation had a taxable income of $365‚000 from operations after all operating costs but before (1) interest charges of $50000 (2) dividends received of $15‚000 (3) dividends paid of $25000 and (4) income taxes. What are the firms income tax liability and its after tax income? What are the company’s marginal and average tax rates on taxable income? Income $365‚000 Less Interest deduction (50‚000)
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