Moose Industries faces the following tax schedule: Taxable Income Up to $50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000...

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Moose Industries faces the following tax schedule: Taxable Income Up to $50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Tax on Base of Bracket Percentage on Excess above Base 15% 25 34 39 34 SO 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 3. Average Tax rate? Last year the company realized $17,000,000 in operating income (EBIT). Its annual interest expense is $2,500,000. 2. What is the firm's marginal tax rate? 35 38 35 4. Calculate the items above for an all equity firm with the same operating income Moose Industries faces the following tax schedule: Taxable Income Up to $50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Tax on Base of Bracket Percentage on Excess above Base 15% 25 34 39 34 SO 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 3. Average Tax rate? Last year the company realized $17,000,000 in operating income (EBIT). Its annual interest expense is $2,500,000. 2. What is the firm's marginal tax rate? 35 38 35 4. Calculate the items above for an all equity firm with the same operating income

Answer rating: 100% (QA)

1 The net income of firm post interest EBT is Rs 14500000 Rs 1... View the full answer