1) Suppose your firm earns $9 million in taxable income. What is the firm's tax liability? What is the average tax rate? What is the marginal tax rate? 50,000 15% 50,001 - 75,000 25% 75,001- 100,000. 34% 100,001-335,000 39% 335,001-10,000,000 34% 10,000,001-15,000,000. 35% 15,000,001-18,333,333 38% 18,333,334- 34%
1) Suppose your firm earns $9 million in taxable income.
What is the firm's tax liability?
What is the average tax rate?
What is the marginal tax rate?
50,000 15%
50,001 - 75,000 25%
75,001- 100,000. 34%
100,001-335,000 39%
335,001-10,000,000 34%
10,000,001-15,000,000. 35%
15,000,001-18,333,333 38%
18,333,334- 34%
.......................................
2) Entity X earns 6 $ per share. If the discount rate or equity cost to be applied by the company is 20% and the investment profitability is 16%;
a) According to the Walter formula, what would the price of shares be in $ if the business had distributed 50% profit?
b) According to Walter, is this the optimum rate of dividend distribution? Explain
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
