Do you believe that the cash flows from the sale of an investment should also include the tax effect of the sale? Explain. Do you believe the cash flows from investing activities should include not only the return of investment, but also the return on investment, that is the interest and dividend revenue? Explain

Q: Which of the following statements is CORRECT? O The more depreciation a firm reports, the higher its…

A: Depreciation means reduction in value of fixed assets over the period of time. It is for normal wear…

Q: How are human and physical capital investment decisions similar? How do they differ? What determines…

A: Physical capital is the stock of equipment and structures used as an input to produce goods and…

Q: What is the vocabulary word for money that's in financial markets, and a rate of return for a…

A: The vocabulary word is the term for things generally used in the Financial market.

Q: Which statement about the cost of capital is incorrect? *     A. If a company’s tax rate increases…

A: The weighted average cost of capital (WACC) is the sum of costs of different sources of finance…

Q: Is the claim that lower company taxes adding to investments correct or is it debatable given the…

A: The money left after expenditure is savings. Savings are used by the individuals for investment. Not…

Q: Which of the following statements support reasons that companies make investments? Select all that…

A: Introduction:- Companies make investment for getting income from non operating activities.…

Q: Which of the following is a constrain for the investors? a. The mentality tontake the high risk b.…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: What is the difference between income which is "realized" and income which is "recognized"?  Which…

A: Financial accounting requires to report all the income and expenses on the books and compute the…

Q: Does the management of long term assets benefit the business in anyway? Are there tax benefits as…

A: Assets  is a resource which has economic value and gives benefit to the company directly and…

Q: The faster an asset can be depreciated, according to IRS rules, the greater a company's after-tax…

A: Depreciation is a process in which, when a business buys or develops an asset, the tax treatment for…

Q: what sense is a firm's WACC also the rate of return that should be earned on its investments?

A: Step 1   The WACC of a company is the overall needed return, which is the discount rate that should…

Q: What are some factors that affect capital structure decisions made by management? What are the…

A: Cost of capital is lowest with 100% debt in capital structure.

Q: Why would a company decide to pay investors cash? What are the two ways to give cash back to…

A: Cash is paid in terms of dividends.

Q: After tax cash flow = Earnings after tax  +  __________ A sunk cost is one that has been incurred…

A: Cash flows after tax can be computed by adding back the depreciation or other sunk cost to the…

Q: A person wonders why the profit after tax is not the same as the cash flows from operating…

A: Step 1 Profit after tax is the amount of profit earned by the company after paying off all operating…

Q: Suppose the Tax Code is "Percetage Tax - 3% of Sales", the presented income statement is correct.…

A: False, with regard to date, since December 31, 2022 has not yet arrived, so income statement upto…

Q: What rate do investors use to discount the capital gains and cash flows of firms?

A: Discounted cash flow estimates the present value of an asset by using projected cash flows.…

Q: explain what a growing balance in the deffered income tax liability is likely to indicate about a…

A: This question deals with the IFRS 12 "Deferred tax" As per IFRS,  When there is temporary taxable…

Q: Explain why the cost of capital is measured on an after-tax basis why is use of a weighted average…

A: This question consists of two subquestions i.e.  (a) Explain why the cost of capital is measured on…

Q: Explain why there is a cost to using reinvested earnings; that is,why aren’t reinvested earnings a…

A: Introduction: Reinvested earnings are the share of direct investors’ earnings from direct…

Q: EBITD is equivalent to profits after taxes. true or false?

A: EBITDA is the earnings before interest tax depreciation and amortization.

Q: What elements must be present for an amount to constitute ordinary income under s 6-5 of ITAA 1997?…

A: Section 6-5 of the ITAA 1997 shows that your assessable income includes income as stated to ordinary…

Q: Which of the following statements is not correct? Group of answer choices A)Purchasing fixed assets…

A: A)Purchasing fixed assets using cash decreases the current ratio. Purchasing fixed asset using cash…

Q: How would you argue for a significant increase in both dividends and repurchases instead of using…

A: Introduction: Stock repurchase allows the company's promoters as well as key stakeholders to reclaim…

Q: a. For reporting purposes, management prefers higher profit; for tax purposes, lower taxable income…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  Identify the best depreciation method: • For the…

Q: is less Tax on Profit on Sale of Asset and less Operating Costs (revenue and expenses) or (other…

A: Capital Budgeting helps the company to check the viability of the project. It will help the company…

Q: Can the net cash flows be viewed as before-tax values or aftertax values for which tax effects have…

A: Cash flow after taxes (CFAT) investigates the capacity of an organization to deliver income from its…

Q: In the extractive industries, businesses may pay dividendsin excess of net income. What is the…

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: l financing affects tax liability

A: Step 1 Debt financing is well regulated under U.S. tax law. Businesses can deduct interest payments…

Q: What is depreciation and amortization? What's the difference? It is an accounting concept that has…

A: Depreciation is a charge to account for a reduction in the value of a capital asset arising because…

Q: How does depreciation give tax benefits? What are the advantages of Internal Financing?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Analyze the truth of this statement: Under the cost method of accounting for investments, a…

A: Cost Method of Accounting for Investments: When it comes to recognizing particular investments in a…

Q: Using loanable funds model, explain how tax cuts for businesses will impact the interest rate and…

A: If the government has announced tax cut for the business sector and it would be leading to increase…

Q: Critically discuss the effect of increasing the amount paid upfront when corporations make capital…

A: Capital purchases refer to the expenses a company makes for buying new equipments, improving long…

Q: how to decide and choose between investments if capital is rationed? Assess the timing effect of…

A: Here asked for multi question we will solve for first question for you.  If you need additional…

Q: Which of the following is not an assumption made by Modigliani and Miller in relation to the…

A: The question is related to theories of Capital Structure.  As per MM Approach, a change in…

Q: Using tax depreciation for tax purposes and straight-line depreciation for financial reporting, do…

A: Deferred tax liability is the amount of tax that is due for the period but not been paid. It arises…

Q: Explain with hypothetical example the effect of Investment Tax Credit.

A: Investment Tax Credit is an opportunity provided while filing for taxation where a deduction of a…

Q: Which depreciation method is most common for financial reporting? Which depreciation method is most…

A:

Q: Holding other factors constant, an increase in the tax rate on revenue generated by capital will:…

A: Increase in tax rate acts as the addition of tax liability of the business. This tax rate is…

Q: Would would an investor prefer to receive a distribution as a repurchase (capital gain)?…

A: A company, at a point of time, may have excess cash with it for the distribution purpose. It may use…

Q: Explain intuitively how a manager could tweak the salvage value of machinery to benefit from an…

A: Depreciation is an expense that decreases the Net profits of the firm, Managers might reduce the…

Q: What are the strategies of deferring capital gains, an exchange may be used in conjunction with…

A: The 1031 Exchange permits Associate in Nursing capitalist to sell assets or property and…