Is there a reason to pick one over the other? 1. FCFF=CFO +Int (1-Tax rate) - FCInv 2. FCFF=NI + NCC + Int (1-Tax rate)-FCInv-WCInv 3. FCFF=EBIT (1-Tax rate) + Dep - FCInv -WCInv 4. FCFF=EBITDA (1-Tax Rate) + Dep (tax rate) - FCInv - WCInv
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Is there a reason to pick one over the other? 1. FCFF=CFO +Int (1-Tax rate) - FCInv 2. FCFF=NI + NCC + Int (1-Tax rate)-FCInv-WCInv 3. FCFF=EBIT (1-Tax rate) + Dep - FCInv -WCInv 4. FCFF=EBITDA (1-Tax Rate) + Dep (tax rate) - FCInv - WCInv
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- K A tax rate schedule is given in the table. If x equals taxable income and y equals the tax due, construct a function y = f(x) for the tax schedule. f(x) = 0.11x +(x-D ☐+(×-D) If taxable income is over But not over 0 8,000 30,700 74,300 74,300 The tax is this amount 0.00 + 8,000 30,700 880.00 + 4,512.00 + 14,976.00 + if 0 74,300 Plus this % 11% 16% 24% 31% Of the excess over 0 8,000 30,700 74,300compute for NOPAT or Net operating profit after tax Formula EBIT x (1-Tax Rate) Tax Rate basis PH Tax rate pic of tax rate is attachedtaxation policy? The average tax rate and the marginal tax rate are the same under the Select one: O a. progressive O b. regressive O c. cumulative O d. corporate O e. flat
- 3. The following are deductions from input taxes, except a. Input tax claimed as tax credit b. Input tax attributed to Vat exempt sales С. Input tax attributed to sales to government d. Input tax on zero-rated salesThe equivalent after-tax return for an investment is computed a O ● Pretax return / (1 - tax rate) O Pretax return / tax rate Pretax return * tax rate O Pretax return * (1 - tax rate)If taxable income is Of the A tax rate schedule is given in the table. If x equals taxable income and y equals the tax due, construct a function y = f(x) for the tax schedule. The tax is this But not Plus this % excess over over amount over 7,550 30,700 7,550 30,700 74,300 0.00 755.00 + 74.300 4,227.50 + 14.691.50 10% 15% 24% 31% 7,550 30.700 74,300 + 0.1x if 0 74,300
- Q2: What is tax accounting? Explain with the help of permanent tax difference.Answer in points: Question. Difference between average and marginal tax ratesTotal Income \table[[Lower Bound, Upper Bound, Rate,\ table[[Maximum Money in], [Bracket]], \table[[Maximum Tax in], [Bracket]]], [$0, $12,200,0%, $12, 200, $0 3. Write a function to model the total tax paid, T(x), with a total income of x dollars. Total Income Lower Bound $12,201 $57,201 $212,201 Upper Bound Rate Maximum Money in Maximum Tax in Bracket Bracket $0 $12,200 $57,200 12% 0% $12,200 $45,000 $5,400 $0 $212,200 25% $155,000 $38,750 $512,200 35% $300,000 $105,000 39.6% No Limit No Limit $512,201 No Limit 2. How many slopes would be on this graph?
- What is the compressed adjusted present value(APV) model, and how does this differ from theModigliani and Miller models? (Hint: think of thediscount rate on the tax shield. What is “compressed” about this model?)EBITD is equivalent to profits after taxes. true or false?1. In computing the CURRENT tax asset or CURRENT tax liability, which tax rate is used? a. Current tax rate b. Future enacted tax rate c. Average tax rate d. Effective tax rate 2. In computing the DEFERRED tax asset or liability, which tax rate is used? a. Current tax rate b. Estimated future tax rate c. Enacted future tax rate d. Prior tax rate 3. It is the sum of the amount of income tax payable and deferred tax liability related to accounting income. a. Tax expense reported in the income statement b. Current tax expense c. Deferred tax expense d. Deferred tax benefit