3) a) If the corporate tax rate is 30% and the individual tax rate is 10%...
3) a) If the corporate tax rate is 30% and the individual tax rate is 10% (and these are the only taxes), a corporation with $20,000 of operating income, what is the after-tax disposable income the corporation generated for its owners? The tax rate is 5% between $0-$10,000 and 12% between $10,001 _$20,000. If you earn $12,000, then what is the average tax rate and the marginal tax rate? b) 4) a) You decide that your family would be comfortable...
4) a) You decide that your family would be comfortable living on an annual income of S150,000, growing at 4% per year. You'd also like to continue generating this cash flow for your descendants, forever. With interest rates of 8%, how much wealth would you need today to provide this income starting with $150,000 one year from now? b) Suppose all income is taxed at 20%. How would this (if at all) change your answer to a)? Assume that you...
4) a) You decide that your family would be comfortable living on an annual income of $150,000, growing at 4% per year. You'd also like to continue generating this cash flow for descendants, forever. With interest rates of 8%, how much wealth would you need today to provide this income starting with S50,000 one year from now? your b) Suppose all income is taxed at 20%. How would this (if at all) change your answer to a)? Assume that you...
Please Refrain from using Excel Thanks! 4) a) You decide that your family would be comfortable living on an annual income of $150,000, growing at 4% per year. You'd also like to continue generating this cash flow for your descendants, forever. With interest rates of 8%, how much wealth would you need today to provide this income starting with S150,000 one year from now? b) Suppose all income is taxed at 20%. How would this (if at all) change your...
a) You decide that your family would be comfortable living on an annual income of $150,000, growing at 4% per year. You’d also like to continue generating this cash flow for your descendants, forever. With interest rates of 8%, how much wealth would you need today to provide this income starting with $150,000 one year from now? b) Suppose all income is taxed at 20%. How would this (if at all) change your answer to a)? Assume that you still...
7) If the corporate tax rate is 40% and the individual tax rate is 20% (and these are the only taxes), if a corporation has $50,000 of operating income, what is the after tax income for its owners? The tax rate is 15% between $0-$50,000 and 25% between $50,001-$100,000. If you earn $60,000, then what is your average and marginal tax rates? b) A bank has quoted to you a monthly rate of 0.25% on a short-term loan. What is...
7) a) If the corporate tax rate is 40% and the individual tax rate is 20% (and these are the only taxes), if a corporation has $50,000 of operating income, what is the after tax income for its owners? The tax rate is 15% between $0-$50,000 and 25% between $50,001-$100,000. If you earn $60,000, then what is your average and marginal tax rates? A bank has quoted to you a monthly rate of 0.25% on a short-term loan. What is...
Please avoid using excel to solve the problem. Thanks! 7) If the corporate tax rate is 40% and the individual tax rate is 20% (and these are the only taxes), if a corporation has $50,000 of operating income, what is the after tax income for its owners? The tax rate is 15% between $0-$50,000 and 25% between $50,001-S 100,000. If you earn $60,000, then what is your average and marginal tax rates? A bank has quoted to you a monthly...
Assume a corporate tax rate of 35% and an individual tax rate of 33%. Perryton Corp. camned S15,000,000 before income taxes during the year. Perryton kope 60% of after-tax profits inside the company to support future growth, and paid the rest as a dividend. How much total tax would have been paid to the Internal Revenue Service (IRS) by all related parties?
Assume a corporate tax rate of 35% and an individual tax rate of 33%. Perryton Corp. eamed 515,000,000 before income taxes during the year. Perryton kept 60% of after-tax profits inside the company to support future growth, and paid the rest as a dividend. How much total tax would have been paid to the Internal Revenue Service (IRS) by all related parties? Numeric Response