Question
Asked Jan 13, 2020
1 views

Dave Scott's total income is $52,000, but his taxable income is only $39,625. Therefore, his tax liability is $5,763. Calculate Dave's average tax rate. Show your work.

check_circle

Expert Answer

Step 1

Formula:

Finance homework question answer, step 1, image 1
fullscreen
Step 2

Computation of average tax rate:

Hence, the average t...

Finance homework question answer, step 2, image 1
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Finance

Related Finance Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: The equity beta of XYZ SE shares is estimated to be 0.8. The expectedequity market return is 8% per ...

A: The formula to calculate cost of equity is given below:

question_answer

Q: Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept ...

A: Calculation of Discounted Payback:The discounted payback is 2.46 years.The project should be Accepte...

question_answer

Q: Compute the expected rate of return on investment i given the followinginformation: Rf = 8%; E(RM) =...

A: Capital asset pricing model formula:

question_answer

Q: The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in € thousands) is ...

A: Cost of equity =12.75%Cost of equity will not be affected by capital reconstruction. It will remain ...

question_answer

Q: Bluegrass Distilleries, Inc. refuses to extend credit to any wholesale distributors who have a histo...

A: Given that the average collection (or receivable) period is 90 days, we can determine the average in...

question_answer

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on ...

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

question_answer

Q: A stock has an expected return of 13.1 percent, its beta is 1.70 and the risk free premium rate is 2...

A: Risk market return is used in CAPM model to calculate expected return on the stock and it is also us...

question_answer

Q: cost of debt 8%     unlevered cost of capital 10%     systematic risk of asset 1.5     1)     ...

A: d) Cost of equity is the levered cost of equity of the firm and can be calculated using the followin...

question_answer

Q: What is the present value of an investment that will generate $100,000 in the first year, $200,000 i...

A: Present value of each cash flows is calculated in the excel below using cost of capital as 5%.Note: ...