Company Z borrows EUR 1 million from the Bank at an annual interest rate of 3,5% for one year. The corporate tax that company Z is paying ia of 50%. Calculate the Tax shield.
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D3)
Company Z borrows EUR 1 million from the Bank at an annual interest rate of 3,5% for one year. The corporate tax that company Z is paying ia of 50%.
Calculate the Tax shield.
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- A & S company has taken a loan of D10,000,000 from Trust Standard Chartered Bank Gambia Ltd. at 15% interest. What is the cost of term loan if the tax rate is 5%?A company has an existing bank loan of Kshs.5,000,000 with an interest rate of 13%. What is the cost of this loan if the tax rate is 30%? a. 7% b. 9.1% c. 30% d. 13%What is the value of before tax equity reversion if sales price is Tk. 8900000, selling expense is 20%, and loan of tk. 938000, 28 years is paid off after 9 years, where rate of interest is 10.5% where monthly installment is tk. 8671.85? a. 6536989 b. 6264989 c. 5951178 d. 6049809
- Your brother's business obtained a 30-year amortized mortgage loan for $175,000 at a nominal annual rate of 7.4%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for Year 1? a. $1,645.03 b. $14,539.98 c. $12,950.00 d. $11,825.05 e. $12,894.95A loan payable has a carrying amount of P4,000. The repayment of the loan will have no tax consequences. How much is the tax base of the liability? The tax rate is 40%.13. In 2022, Mr. Sun Ho was charged interest expense on a business related loan in the amount of PHP 60,000. His interest income on bank account with BPI is PHP 720. How much is the deductible interest expense? a. None b. PHP 59,856 c. PHP 144 d. PHP 60,000
- Your friend made an investment of P 45,000 for 2 months at 15% simple interest. If withholding tax is 20%, what is the net interest that he will receive at the end of 2 months?Notional amount = $1 million, and payments are made semiannually. The corporation will pay a floating rate of three-month Libor, which is 3%, and will receive a fixed payment of 3.5%. What is the correct floating rate payment in $? What is the size of the fixed rate payment in $? How much is the net payment on the first payment date? Is it a net gain or loss for this corporation?You invest 185 000 TL to a bank deposit account at gross rate of %24.5 for 65 days. If the withholding tax rate is %15, how much would you have net in your account at the end of 65 days.
- Zara Corporation borrowed RM100,000 from their bank for one year. The bank required the company to pay RM9,500 in interest at the end of the year plus maintain a minimum balance of RM10,000 with the bank in a chequing account throughout the year. What is the effective interest rate on this loan?Capital Computer Corporation takes out a $10,000 loan to finance the purchase of new physical capital. It must repay the loan in full with interest in one year. The interest rate is 10 percent and the applicable corporate tax rate is 30 percent. What is the present value savings from the deductibility of the interest payment from Capital Computer Corporation’s taxes? Please round your answer to the nearest dollar.The Flatiron Group, a private equity firm headquartered in Boulder, Colorado, borrows £5,000,000 for one year at 7.375% interest (assume annual compounding). What is the dollar cost of this debt if the pound depreciates from $2.0625/£ to $1.9460/£ over the year? Please enter your answer as % -- e.g. if your answer is 2.34% type in 2.34.
