Question1.gif” alt=”Question 1 unsaved”>The Federal estate and gift taxes areexamples of progressive taxes.Question 1 options: True False SaveQuestion 2.gif” alt=”Question 2 unsaved”>The FICA tax (Medicare component) onwages is progressive since the tax due increases as wagesincrease.Question 2 options: True False SaveQuestion 3.gif” alt=”Question 3 unsaved”>Some states use their state incometax return as a means of collecting unpaid sales and use taxes.Question 3 options: True False SaveQuestion 4.gif” alt=”Question 4 unsaved”>No state has offered an income taxamnesty program more than once.Question 4 options: True False SaveQuestion 5.gif” alt=”Question 5 unsaved”>The ad valorem taxon personal use personalty is more often avoided by taxpayers than the advalorem tax on business use personalty.Question 5 options: True False Save Question 6.gif” alt=”Question 6 unsaved”>A VAT (value added tax):Question 6 options: Is regressivein its effect. Has not proved popular outside of the U.S. Is not a tax on consumption. Is used exclusively by third world (less developed)countries. None of the above. SaveQuestion 7.gif” alt=”Question 7 unsaved”>Which, if any, is notoneof Adam Smith’s canons of taxation?Question 7 options: Economy. Certainty. Convenience. Simplicity. Equality. SaveQuestion .gif” alt=”Question 8 unsaved”>Taxes levied by all statesinclude:Question 8 options: Tobaccoexcise tax. Individual income tax. Inheritance tax. General sales tax. None of the above. SaveQuestion 9.gif” alt=”Question 9 unsaved”>Federal excise taxes that are nolonger imposed include:Question 9 options: Tax on air travel. Tax on wagering. Tax on the manufacture of sporting equipment. Tax on alcohol. None of the above. SaveQuestion 10.gif” alt=”Question 10 unsaved”>In terms of probability, which of thefollowing taxpayers would be least likely to be audited by theIRS?Question 10 options: Taxpayer owns and operates a check-cashingservice. Taxpayer is an employed electrician. Taxpayer just received a $3 million personalinjury award as a result of a lawsuit. Taxpayer just won a $1 million slot machinejackpot at a Las Vegas casino. Taxpayer has been audited several times before.
Cost of Capital
Shareholders and investors who invest into the capital of the firm desire to have a suitable return on their investment funding. The cost of capital reflects what shareholders expect. It is a discount rate for converting expected cash flow into present cash flow.
Capital Structure
Capital structure is the combination of debt and equity employed by an organization in order to take care of its operations. It is an important concept in corporate finance and is expressed in the form of a debt-equity ratio.
Weighted Average Cost of Capital
The Weighted Average Cost of Capital is a tool used for calculating the cost of capital for a firm wherein proportional weightage is assigned to each category of capital. It can also be defined as the average amount that a firm needs to pay its stakeholders and for its security to finance the assets. The most commonly used sources of capital include common stocks, bonds, long-term debts, etc. The increase in weighted average cost of capital is an indicator of a decrease in the valuation of a firm and an increase in its risk.
Question
1
.gif” alt=”Question 1 unsaved”>
The Federal estate and gift taxes are
examples of progressive taxes.
Question 1 options:
True
False
Save
Question 2
.gif” alt=”Question 2 unsaved”>
The FICA tax (Medicare component) on
wages is progressive since the tax due increases as wages
increase.
Question 2 options:
True
False
Save
Question 3
.gif” alt=”Question 3 unsaved”>
Some states use their state income
tax return as a means of collecting unpaid sales and use taxes.
Question 3 options:
True
False
Save
Question 4
.gif” alt=”Question 4 unsaved”>
No state has offered an income tax
amnesty program more than once.
Question 4 options:
True
False
Save
Question 5
.gif” alt=”Question 5 unsaved”>
The ad valorem tax
on personal use personalty is more often avoided by taxpayers than the ad
valorem tax on business use personalty.
Question 5 options:
True
False
Save
Question 6
.gif” alt=”Question 6 unsaved”>
A VAT (value added tax):
Question 6 options:
Is regressive
in its effect.
Has not proved popular outside of the U.S.
Is not a tax on consumption.
Is used exclusively by third world (less developed)
countries.
None of the above.
Save
Question 7
.gif” alt=”Question 7 unsaved”>
Which, if any, is notone
of Adam Smith’s canons of
Question 7 options:
Economy.
Certainty.
Convenience.
Simplicity.
Equality.
Save
Question
.gif” alt=”Question 8 unsaved”>
Taxes levied by all states
include:
Question 8 options:
Tobacco
excise tax.
Individual income tax.
Inheritance tax.
General sales tax.
None of the above.
Save
Question 9
.gif” alt=”Question 9 unsaved”>
Federal excise taxes that are no
longer imposed include:
Question 9 options:
Tax on air travel.
Tax on wagering.
Tax on the manufacture of sporting equipment.
Tax on alcohol.
None of the above.
Save
Question 10
.gif” alt=”Question 10 unsaved”>
In terms of probability, which of the
following taxpayers would be least likely to be audited by the
IRS?
Question 10 options:
Taxpayer owns and operates a check-cashing
service.
Taxpayer is an employed electrician.
Taxpayer just received a $3 million personal
injury award as a result of a lawsuit.
Taxpayer just won a $1 million slot machine
jackpot at a Las Vegas casino.
Taxpayer has been audited several times before.
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