What does the Miller model with personal and corporate taxes implyabout value relative to the MM model with just corporate taxes?

Q: Explain the difference between marginal tax rates and average taxrates.

A: Marginal tax rate : The marginal tax rate is the system by which the federal taxation system makes…

Q: why are the operating taxes in the FCF analysis calculating without taking into account the tax…

A: Interest paid on loans or debts is an expense for the company. Also these interests reduces the…

Q: How is the compressed adjusted present value (APV) model different from the Modigliani and Miller…

A: Here is the Answer:

Q: How much in taxes would the target firmhave to pay on any gains it realizes?

A: Corporate taxes are calculated on the gross profits after the expenses have been deducted from the…

Q: What is Marginal tax rate ?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Property and income taxes are more popular than sales taxes and user charges? True or False

A: Taxes are the fees charged by the government to collect revenue and run the country. The money…

Q: 2. What is the interpretation of the effective dividend taxrate?

A: The effective dividend tax rate is different from the dividend tax rate because the corporation's…

Q: taxation policy? The average tax rate and the marginal tax rate are the same under the Select one: O…

A: Regressive Tax Policy: This form of taxation is progressive, meaning that the tax rate decreases as…

Q: What’s the difference between marginal and average tax rates?

A: The taxes are the government source of income from the general public. The tax rate are the…

Q: What are the advantages of an indirect tax such as the VAT compared with an income tax?

A: The objective of this question is to understand the advantages of an indirect tax, specifically…

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: What are FUTA and SUTA taxes? Is there any possible reduction in the FUTA tax rate? If so, what is…

A: Introduction: Employer payroll taxes are paid by the employer from its own funds on the basis of…

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

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

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: Why do we use an after-tax figure for the cost of debt but not for the cost of equity? Explain your…

A: The cost of debt and the cost of equity are two fundamental concepts in finance that help companies…

Q: Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Incorporated, During 2020, he was…

A: Given : Fair market value = 35,000 Drove total = 22,000 miles Used car = 26,000 miles Per mile = 5.5…

Q: How much was the profit before finance cost and income tax?

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Q: you mean by preference capital ? 2. What do you mean by fair value ? 3. What do you mean by the…

A: Money raised by the  company for business may be equity or debt or preference shares.

Q: Define each of the following terms:b. Dividend irrelevance theory; bird-in-the-hand theory; tax…

A: Dividend decision is an important decision which every finance manager must take. There are various…

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: What is the equation for M & M Proposition II, without taxes, is best shown as?

A: In this question, we are required to determine the equation for the M&M Proposition.

Q: We tax net income? What economic distortions would occur if we taxed gross receipts?

A: Gross income is the income to the company or an individual after operating activities or providing…

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

A: EBIT is the earnings before interest and tax.

Q: Explain with hypothetical example the effect of Investment Tax Credit.

A: Investment Tax Credit is an opportunity provided while filing for taxation where a deduction of a…

Q: The equation for M & M Proposition I, with taxes, is best shown as?

A: In this question, we are required to determine the equation for M & M Proposition I.

Q: What is the advantage of Making versus Buying? Give a scenario and explain the effect focusing on…

A: A make-or-buy decision is an act of choosing whether the product manufacture in-house or…

Q: What will be the Effect of Interest Rates on the After Tax IRR on Equity?

A: "Financial leverage is a double edged sword". If the company is not managing its financial resources…