If depreciation is $3.95 million and the marginal tax rate is 21 percent, then the depreciation tax

Fantastic news! We've Found the answer you've been seeking!

Question:

If depreciation is $3.95 million and the marginal tax rate is 21 percent, then the depreciation tax shield is $___ million.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

See More Books

Posted Date: Jun 20, 2023 04:57 AM

See More Questions

The CEO of Kuehner Development Co. has just come from a meeting with his marketing staff where he was given the latest market study of a proposed new shopping center, Parker Road Plaza. The study...
The financial year for companies below ends on 31 December. (a) COMPANY 1 purchased a computer for $13,000 on 1 July 2020. The company intends to depreciate it over 4 years using the double-declining...
The CIG Power Corporation expects to report earnings before interest and taxes of $25 million this year. Management has determined that the firm needs $10 million of new capital this year to fund its...
The focal length of a thin biconvex lens is 20 cm. When an object is moved from a distance of 25 cm in m25 front of it to 50 cm, the magnification of its image changes from ms to m50. The ratio is m50
Discuss the impact of the economy on a companys pricing strategies.
How would you evaluate the design of this book?
Lynn Goldsmith is a photographer known for her photographs of famous musicians. In 1981, Goldsmith had a photography session with the singer Prince. Three years later, Vanity Fair obtained a license...
The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2012 and 2011, with a column showing the increase (decrease) from 2011 to 2012. Additional information:1. On...
Does the monopoly power wielded by professional sports leagues hurt the fans, players, citizens, local economies, or the sport? What solutions could be used ?
1. Use DEA to identify the efficient and inefficient terminal operations. Formulate the problem as a linear programming model, and solve using computer software such as Excel Solver that permits...
A small town in Western Oregon decides to build a road to connect the town to Interstate 5. Initially, the town council decides to have no restrictions on access to the road. Assume that each person...
Discuss in detail ANY THREE (3) Reason (Drive revenue and profit growth, Managing your variable customer service expenses and more accurate consumer target) why an online business such as SmartMove...
The Mendez family is considering a mortgage loan of $ 3 5 0 , 5 0 0 at an annual interest rate of 6 . 7 % . ( a ) How much greater is their mortgage payment if the term is 2 0 years rather than 3 0...
What is the method of measurement? What controls are in place? What assumptions are used and how are they developed? Has there been a change, or should there be a change, in the methods or...
2. Airlines accept requests for package shipments on its flights based on the estimated storage remaining after accounting for the storage taken up by its passengers. For an upcoming flight from...
2. Assuming there exists a Java class named "Fruits", which can create an instance named "f of the "Fruits" class that calls the default constructor for initialization? A. Fruits(fl) = new Fruits();...
1.The ABCD company produces sofa chairs. The fixed monthly cost of production is 470,000 and variable cost per sofa is 6,200 per piece. For monthly volume of 140 chairs. i. What is the total revenue?...
Complete the following acid-base reactions: (a) HCCH + NaH
Dewyco has preferred stock trading at $50 per share. The next preferred dividend of $4 is due in one year. What is Dewycos cost of capital for preferred stock?
Empire Industries forecasts net income this coming year as shown below (in thousands of dollars): EBIT ........ $1,000 Interest expense ..... 0 Income before tax .... 1,000 Taxes ........ -350 Net...
Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semiannual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment...
Do any problems arise when translating physical assets and economic events into monetary units? Give one or two illustrations to support your answer.
Entries for the Warren Clinic 2015 income statement are listed below in alphabetical order. Reorder the data in proper format. Depreciation expense General/administrative expenses Interest expense $...
Brandywine Homecare, a not-for-profit business, had revenues of $$12$ million in 2015. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $$1.5$...

If depreciation is $3.95 million and the marginal tax rate is 21 percent, then the depreciation tax

Question:

Expert Answer:

To calculate the depreciation tax shield we multiply the depreciation amoun... View the full answer

Fundamentals of Corporate Finance

Students also viewed these finance questions