True or False An increase in the capital gains tax rate decreases the total amount of unrealized returns

Q: A Higher business tax will (Please select the best choice) (A) increase inflation (B) decrease…

A: Inflation refers to the rise in price levels of products or services. It generally happens if the…

Q: Why is the after tax cost of debt rather than the before tax cost used to calculate the weighted…

A: Weighted average cost of capital :  WACC or Weighted average cost of capital, as the name suggests,…

Q: The Adjusted Present Value approach to valuation uses Interest Tax Savings to account for:     a.…

A: The Adjusted Present Value method, unlike NPV, considers the advantages of taking on debt (such as…

Q: When they are net of taxes, prior period adjustments always increase the value of Retained Earnings…

A: Prior Period Adjustments: Correction of an error in the financial statements that were reported in…

Q: Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on…

A: Taxation is the process by which governments collect money from individuals and businesses to fund…

Q: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…

A: Temporary differences are differences between book income and taxable income of the business. These…

Q: Which of the following statements regarding the accrual equivalent after-tax return is most likely…

A: Option a: This option is incorrect because, It depends on the tax rate. In some cases, it could be…

Q: Interest income is taxed at a lower rate than dividends. True or false

A: Interest income is the money earned from lending money or investing in interest bearing assets like…

Q: Please in calculating return on year end capital employed = profit before tax / capital employed.…

A: Return on capital employed (ROCE): It is the type of profitability ratio that tells how well the…

Q: hort term capital gains taxes are higher than long term capital gains taxes. How does the different…

A: At the point when you sell a capital resource for more than you paid for it, the outcome is a…

Q: EBITD is equivalent to profits after taxes. true or false?

A: EBITDA is the earnings before interest tax depreciation and amortization.

Q: The after tax cash flow requires more computation than the before tax cash flow evaluation? True…

A: The objective of the question is to determine whether the computation of after-tax cash flow is more…

Q: Income Taxes Payable or refundable + Changes in deferred income taxes = total income tax expense or…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: What is the compressed adjusted present value(APV) model, and how does this differ from…

A: The sum of the net present value and the financial benefits calculated by other methods of…

Q: Your average tax rate a. equals your marginal tax rate. b. is none of these. c. is less than your…

A: Average tax rate is the total taxes paid divided by the taxable income, whereas marginal tax rate is…

Q: The tax rate paid on your last dollar of income is called the average tax rate. a. true b. false

A: Average tax rate is calculated as the total tax liability divided by taxable income, whereas…

Q: Tax rates other than the current tax rate may be used to calculate the deferred income tax amount…

A: Answer:-  Tax rate meaning:- Tax rate is that percentage on which and individual or corporation is…

Q: What is the real return?   Multiple Choice   The after-tax return on assets.   The pre-tax return…

A: Rate of return is the percentage of profit that is earned on an investment.

Q: The money you receive back because you have overpaid your taxes is called a tax return. a. true b.…

A: Tax refund is the money which an individual gets back, if he has overpaid his taxes, that is, it is…

Q: Why is the after-tax cost of debt, rather than its before-taxrequired rate of return, used to…

A: The mix of equity and debt is a business organization is known as the capital structure of the…

Q: EBIT is equivalent to profits after taxes. true or false?

A: EBIT is the earnings before interest and tax.

Q: Which of the following has the greatest effect of reducing tax payable through the acceleration of…

A: Bad Debt refers to the value of those uncollected sum of money or a form of expense which is owned…

Q: the process of reducing the allowable deduction of interest expense by a certain percentage is…

A: the process of reducing the allowable deduction of interest expense by a certain percentage is…

Q: Would would an investor prefer to receive a distribution as a repurchase (capital gain)?…

A: A company, at a point of time, may have excess cash with it for the distribution purpose. It may use…

Q: Of the following, the most likely effect of an increase in income tax rates would be to: A)…

A: income tax rate is the percentage of income that is paid to the government.

Q: Valuation allowances reduce deferred tax liabilities to the amount that is more likely than not to…

A: Solution:- A valuation allowance is used for the purpose of offsetting deferred tax asset. The…

Q: Which of the following are true about Deferred Tax Liabilities? (check all that apply) In the…

A: Deferred tax liabilities and deferred tax assets arise when there are timing differences between…

Q: When they are net of taxes, prior period adjustments always increase the value of Retained Earnings…

A: The term 'prior period adjustments' described as any revenue or expenditures that occur in the…

Q: Target profit before taxes is calculated as target profit after tax divided by one minus the tax…

A: Target profit:Target profit represents the specific profit level a business aims to attain within a…