Explain in detail how the corporate taxation affects capital structure choice? How about personal capital income taxation?
Capital structure of a company directly affects it's tax payments as capital structure comprises of both debt and equity.As Interest payments on debts are directly deductle from taxable profits which it is not feasible in case of equity financing.In case of equity company has to pay tax on dividend payments made by it whereas there is no tax on retained earnings made by companies.So it becomes very important for companies to determine capital structure after considering the corporate taxation rates.Personal capital income taxation depends upon the period of holding of corporate shares.Generally the rate of tax for short period is more in comparison to long term.Individiuals are required to pay capital gains tax in their own hands.However in case of income from debt investment only Interest income is taxable in the hands of the individuals.Individuals can set of their loss on capital investment with the gains made on the investments using tax loss harvesting strategy.
Explain in detail how the corporate taxation affects capital structure choice? How about personal capital income...
Explain how income inequality affects the accumulation of human capital through the resource allocation problem between physical capital and human capital learned in class.
(Ultra) Large-Scale Systems –Characteristics? explain in detail How the nature of an enterprise affect complex system design? explain in detail How an enterprise culture affects system design? explain in detail How emergent property of an engineering systemchange enterprise culture and business? explain in detail
Using scientific principles, explain in detail how ambient temperature affects resistance and what are its consequences on power ratings of a carbon resistor in a circuit?
What is meant by "cost structure?" Explain how a company's cost structure affects the break-even point.
Q-1 (10 points) Taxation of Corporate Earnings. You are a stockholder in ACF Inc. Before the corporation taxes, the corporation earns $6 per share. It distributes the rest of its earnings after taxes to its stockholders as dividends. You are given the following tax rates: • Corporate tax rate: 40% • Personal tax on dividend income: 30% • Personal tax on non-dividend income: 35% (a) How much per share is left to you after all the taxes are paid? (b)...
explain detail gross Income and Exclusions. Give 10 examples of items included in Gross Income and 10 examples of items included in Exclusions. Comment on how you can use IRS Publication 17 as a reference to study income which is included in Gross Income. Gross Income is defined in Internal Revenue Code (IRC) 61. Discuss what IRC 61 states. Also, explain Return of Capital Principle, the Accrual and Cash Methods, the Claim of Right Doctrine, the Assignment of Income Doctrine,...
EXplain how rate inflation affects savings? by the income and saving
Help Gross Private Domestic Investment Personal Taxes Transfer Payments Taxes on Production and Imports Corporate Income Taxes Personal Consumption Expenditures Consumption of Fixed Capital US Exports Dividends Government Purchases Net Foreign Factor Income Undistributed Corporate Profits Social Security Contributions US Imports Statistical Discrepancy $1,593 1,113 1,683 695 213 7,304 1,393 1,059 434 1,973 10 141 748 1,483 50 Refer to the accompanying national income data (in billions of dollars). Net private domestic investment is equal to Multiple Choice $1,793 billion....
Explain how the structure of silicate minerals ultimately affects how different types of tectonic plates form and interact.
If Congress increased the personal tax rate on interest, dividends, and capital gains but simultaneously reduced the rate on corporate income, what effect would this have on the average company’s capital structure?