firm is $60‚000 per year‚ and his salary expected to increase at 3 % per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan‚ and his current average tax rate is 26 %. Ben has savings account with enough money to cover the entire cost of his MBA program. The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full time enrollment
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Unit Two – Test Questions Review Questions 1. What are three economic stances that a government may have? Describe each of these stances. 1. Static: Sticking to the status quo in the government. 2. Progressive: Increasing the citizen’s equality and improving life for every citizen. 3. Fiscal Policy: The use of taxes and spending. 2. What are the four different types of economic resources? Describe each type. Labor: Labor is the work done by humans to sell consumer goods. Labor is very important
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public corporations have thousands of shareholders. One reason not all companies incorporate is cost‚ in both time and money‚ of managing the corporation’s legal machinery. A disadvantage for corporations is double taxation. Corporations pay tax on their
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Franking Credit: A type of tax credit found in countries such as Australia that allows domestic companies to pass through taxes that have already been paid on corporate profits. The investor receiving stock dividends will also receive a quantity of franking credits in proportion to the overall tax rate of the company per dollar in profits. When filing personal income taxes‚ the investor will record as income both the amount of the dividend and the amount of the franking credit; however‚ the
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Net working capital = current assest – current liabilities NWC = 3840 – 2470 NWC = 1370 2. Building an income statement Lifetime‚ Inc.‚ has sales of $585‚000‚ cost of $273‚000‚ depreciation expense of $71‚000‚ interest expense of $38‚000‚ and tax rate of 40%. What is the net income for this firm? Income statement Sales 585000 Costs 273000 Deprectiation 71000 EBIT 241000 Interest 38000 Taxable income 203000 Taxes 81200 Net Income 121800 6. Calculating
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Zimbabwe’s economic freedom score is 22.1‚ making its economy the 178th freest in the 2011 Index. Its score has increased by 0.7 point from last year‚ reflecting gains in four of the 10 economic freedoms. Zimbabwe is ranked last out of 46 countries in the Sub-Saharan Africa region and is the second least free country in the 2011 Index. The Zimbabwean economy is characterized by instability and volatility‚ both hallmarks of excessive government interference and mismanagement of the economy. The country’s
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of two introductory courses in Federal income tax law which are designed to achieve the following objectives: (1) to explain the theoretical concepts behind the specific provisions of the law‚ (2) to apply the law in practical problems and case settings‚ (3) to interpret the law‚ taking into account the specific wording of the provisions‚ judicial decisions and Canada Revenue Agency’s (CRA) position‚ and (4) to introduce basic tax planning concepts through problem application
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expected return on the stock for a long-term investor in the company. c. Estimate the cost of equity for the company. 2. Boise Cascade had debt outstanding of $1.7 billion and a market value of equity of $1.5 billion; the corporate marginal tax rate was 36%. a. Assuming that the current beta of 0.95 for the stock is a reasonable one‚ estimate the unlevered beta for the company. b. How much of the risk in the company can be attributed to business risk and how much to financial
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the corporate income of a S Corporation flows through to the individual shareholders income tax return and is taxed at the individual level. Income is passed through in proportion to ownership percentages . When a shareholder takes a distribution of income‚ in most cases‚ it is not considered taxable income since the individual has already paid tax on it. S corporation distributions will only become taxable if an individual’s distributions
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Advantages and Disadvantages to Homeownership This paper will look at reasons why people should look into becoming a homeowner.Of‚ course there are lots of advantages to homeownership‚ but when there is good‚ bad always seems to follow not far behind. The main dreams in most people’s lives are to A.Become an adult. B. Get married. C. Have children‚ and. D. Own a home. This paper will examine several reasons why one should become a homeowner‚ but it will alson show some of the pitfalls to the American
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