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- 5 Morris a single taxpayer earns wages of $350,000. In tax year 2021 he also owns a sole proprietorship with $210,000 of income and $480,000 of allowed deductions ( 270,000 dollar loss). Boris has enough tax basis to cover the loss as and is considered at risk for the loss amount and he materially participates in the activity. What is the amount of excess business loss he will carry forward $10,000 $80,000 $260,000 $270,000Which president's fiscal policy included lower corporate profit and income tax rates, along with faster depreciation of property? o Barack Obama o George W. Bush o Donald Trump o Joe BidenPMF, Inc., is equally likely to have EBIT this coming year of $10 million, $15 million, or $20 million. It's corporate tax rate is 40%, and investors pay a 10% tax rate on income from equity and a 40% tax rate on interest income. What is the interest tax shield if PMF has interest expenses of $5 million this coming year? A. $2 million B. $4 million C. $0.3 million D. $2.25 million
- Firms A and B are identical except for their capital structure. A carries no debt, whereas B carries £60m of debt on which it pays a 5% interest rate. Assume no transaction costs, no taxes and risk-free debt. The relevant numbers are provided in the following table (in £ m): A B Value of Firm 100 120 Debt 0 60 Equity 100 60 Projected earnings before interest 12 12 Interest payment 0 3 Interest rate Not Applicable 5% Please answer the following questions a) "The situation described in the table is consistent with the absence of arbitrage opportunities". True or False (T/F)? b) Which one of the two firms is relatively overvalued (A/B)? c) "B's shares carry more risk than A's shares". True or False (T/F)? d) What is the return to an investor holding a 10% stake in B (in £ '000)? e) Consider an investor who wants to purchase a 20% stake in A. If he wished to replicate B's capital structure through homemade leverage,…Richie Rich has applied for a home equity loan. The bank on its part has estimated the market value of Richie's property at $750,000. If the amount of existing mortgage loan on the property is $500,000 and the bank lends only up to 70 percent of the borrowing base, what is the maximum amount of loan will Richard get? a.$175,000 b.$750,000 c.$100,000 d.$250,000"Corporate directors owe fiduciary duties/obligations to the corporation and itsshareholders". Please discuss these duties.
- Please no written by hand solution 1 a) Assuming that Stanbic Bank has branches A, B, C D etc. and it receives a deposit of 50,000 Shs from a particular person. It then removes a cash ratio of 15%. Explain how Stanbic Bank will create credit among her different branches. b) As a student of macroeconomics, what do you think, the government will do to achieve the forecasted drops in inflation rates. c) Discuss the major effects of taxes on the performance of our economy d) Advise the government on some of the major guiding principles they should follow when introducing a tax system e) Discuss the factors that limit the process of credit creation in any country Kindly please do not use GOOGLE ( No Copy and Past)_______ is simply external indicator of how we handle our financial life. It is an attribute or a characteristic about us. Credit Income Debit Personally DebtBank Three has equity = $250 million, return on equity (ROE) = 15%, interest expense = $105 million, provision for loans (P) = $30 million, noninterest income = $45 million, noninterest expense = $20 million and a tax rate = 34%. What is the total interest income required? $216.82 million. $236.82 million. $146.82 million. $166.82 million.
- Can you explain me what is the assets = capital + liabilitiesHi. I am trying to understand Millers point of view from the 1977 paper. Could someone explain to me why we divide the equation to (1-tax on interest)? Thank you.Give typing answer with explanation and conclusion Would the proposed amendments to the income taxes paid disclosure, the rate reconciliation disclosure for entities other than public business entities, and the disclosure of pretax income (or loss) and income tax expense (or benefit) provide decision-useful information for private company investors? Please explain why or why not.