Is there a reason to pick one over the other? 1. FCFF=CFO +Int (1-Tax rate) - FCInv 2. FCFF=NI + NCC + Int (1-Tax rate)-FCInv-WCInv 3. FCFF=EBIT (1-Tax rate) + Dep - FCInv -WCInv 4. FCFF=EBITDA (1-Tax Rate) + Dep (tax rate) - FCInv - WCInv
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Is there a reason to pick one over the other? 1. FCFF=CFO +Int (1-Tax rate) - FCInv 2. FCFF=NI + NCC + Int (1-Tax rate)-FCInv-WCInv 3. FCFF=EBIT (1-Tax rate) + Dep - FCInv -WCInv 4. FCFF=EBITDA (1-Tax Rate) + Dep (tax rate) - FCInv - WCInv
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- Is there a reason to pick one over the other? Which formula would apply to a certain company or scenario? 1. FCFF=CFO +Int (1-Tax rate) - FCInv 2. FCFF=NI + NCC + Int (1-Tax rate)-FCInv-WCInv 3. FCFF=EBIT (1-Tax rate) + Dep - FCInv -WCInv 4. FCFF=EBITDA (1-Tax Rate) + Dep (tax rate) - FCInv - WCInvcompute for NOPAT or Net operating profit after tax Formula EBIT x (1-Tax Rate) Tax Rate basis PH Tax rate pic of tax rate is attached1. Name three types of tax rate structure and give examples. 2. What type of tax is sales tax? 3. Define and compare these terms: Average tax rate and Marginal tax rate
- 1. In computing the CURRENT tax asset or CURRENT tax liability, which tax rate is used? a. Current tax rate b. Future enacted tax rate c. Average tax rate d. Effective tax rate 2. In computing the DEFERRED tax asset or liability, which tax rate is used? a. Current tax rate b. Estimated future tax rate c. Enacted future tax rate d. Prior tax rate 3. It is the sum of the amount of income tax payable and deferred tax liability related to accounting income. a. Tax expense reported in the income statement b. Current tax expense c. Deferred tax expense d. Deferred tax benefitTarget profit before taxes is calculated as target profit after tax divided by one minus the tax rate. True FalseWhich cost flow assumption must be used for financial reporting if it is also used for tax reporting? Multiple Choice LIFO. FIFO. Weighted-average. Any assumption can be used regardless of the tax reporting.
- Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.A. Define and give examples of direct taxation and indirect taxation. B. Define and give examples of a progressive tax, regressive tax and proportionate tax. Use diagrams to illustrate. C. Outline THREE (3) main attributes of a good tax systemWhat is the difference between tax rates and tax rate structures? How does this notion of 'structure' relate to the vertical equity of a tax system? Select the INCORRECT response. a. A tax rate is the ratio of tax revenue to a tax base as set by statute such as an income tax rate or a mil rate. b. A tax rate structure is the set of rates related to a particular tax base. c. For the income tax, vertical equity can be categorized by observing the tax rate structure (how rates respond to income). d. Taxpayers face many different tax structures but only one tax rate.